The Washington herald., 1908-04-02
MARKET CLOSES HIGH
Advances Noted Until the
Last Few Minutes.
ERIE'S REQUEST IS GRANTED
Railroad VIII Issue SI5,OOO,OO0 Col
aterally Secured Short-term Notes.
s.Ock Advances with Announce
lt-DOubts Expressed IL Fund
BE Enough TO Pay Debts.

York. April LIN the extremely
ssional stock market now current.
overshadowing factor to-day con-
d to be, as ii was yesterday, discus
concerning the financial arrange
is OF the Erie Railroad Company.
became known to a relatively small
lber of people shortly before the close
the Stock Exchange business yester-
afternoon that the Public Service
nmission had granted the application
the railroad to issue Sl5,0O0,OOO coIIat-
Ally secured short term notes. under
rtain restrictions. and the fact was
bic property this morning.
Although IL was not so stated, the pre-
sumption was, Of course, that the hold
ers of the Erie's existing short term obli-
cations would exchange these for the new
notes, thus clearing the Eries difficulties
for the time being. The probability led to
an advance in the general market in the
early dealings, the Erie securities leading
with large gains. Later on, the market
became dull and developed a hestating
tendency, under doubts as to whether the
Erie's financing plan would become effec-
tive, or. if so. if its benefit would be more
than shortlived.
Money Needed for Debts.
1t was pointed out that the Erie's needs
on the score of pressing Indebtedness
alone would amount TO in the neighbor-
hood of nearly $l5.OOO.OOO in the next two
or three months. none Of the money thus
raised being available for the purpose
OF repairs or improvements. 1t was also
obvious that unless means were taken TO
provide cash for the payment Of such
holders of the old short term notes as
did not wish TO extend them or exchange
them for the new collateral security notes,
the whole scheme might prove a failure.
No statement regarding this was forth
coming from the Erie directors. although
1t was common expression that such a
statement would be made public after the
formal meeting Of the directors to-mor-
row, held 20 consider the situation.
The stock market. therefore. backed and
filed during the remainder of the day; the
influence Of greater weight. however. be-
ing very plainly the eSort Of the specu-
lative room traders who sold stocks for
the decline yesterday because Of the Erie
matter. to secure what profits, II any,
awaited them.
Market Closes with Advances.
The market closed uniformly at ad-
vances, with final prices depressed by a
closing selling movement 70 points con-
siderably below the days business.
A striking feature Of the days busi-
ness was the further advance in Colorado
En- and Iron stock. This stock has
continuously during the week, de-
the varying fluctuations in the gem
market. and the only explanation
gossip OF Wall street had TO offer
he circumstance has been the very
mt story that the control of the Col
Fuel and Iron Company was 10 be
over by the United States Steel
Oraucn. II may be that the consensus
lat there Is no known reason in the
rs OF the Colorado Fuel and Iron
lpany itself TO account for any rise
the moment in the price of its Sc
ties
mother stock to-day whose movement
racted particular attention was Ameri-
Smelling and Refining common, which
weak all through the morning when
advancing tendency Of the market
a whole was most manifest and closed
er large transactions, at the same
ce at which IL did yesterday afternoon
The generally accepted theory was that
heaviness Of the stock was closely
injected with recent developments con-
rning thd Yukon Gold in the curb
arket.