The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-03-31
WALL STREET NEWS
Drop in Price of Atchison
Bond Causes Weakness.
INFLUENCE IS UNFAvoRABLE
Reason for the Fan OF New Issue
Said 70 BE Fact that Conversion
Privilege Does Not Go Into Eject
for Three Yenrs-Pennsy Wage In
crease Also Causes Heaviness.

New York, March S0.-Numerous expla-
nations were Of course offered IN Wail
street to-day for the renewed weakness
In the security market. and OF these
greatest prominence in popular discussion
was perhaps given to the unfavoraoie IN
huence exerted by the sharp decline in
the curb market in the quotations for the
new Atchison convertible per cent
bonds. whose issue was announced yes
terday afternoon The bonds sold when
issued yesterday at 1885; to-day their
price fell to 1884. Yesterday the sub
scription rights to the new bonds were
quoted az from s to rs per cent; to-day
the rights were quoted 81 Is OF per cent
Reason for this fall was commonly said
to be the fact that it was not generally
known until to-day that the conversion
privilege to the new bonds did not go
into effect until June /. 1913. and 1t was
argued that the postponement OF this
privilege made the bonds less desirable
than was yesterday thought.
Not Well Understood.
The argument seemed somewhat spe-
cious. inasmuch as-although the official
terms Of the bond issue did not become
matters OF accurate public knowledge
yesterday afternoon-it could hardly have
been supposed that the Atchison direc-
tors would make an issue OF bonds i'm
mediateIy convertible into common stock
with the current market price Of the
stock away above the subscription price
OF the bonds. Be this as it may, the
impression from d speculative point OF
Wow was natural, even if the event
should prove to be entirely unfounded
ceedingly successful.
The truth IS that the Atchison bond IS
sue was only one Of a number Of mat
tiers affecting to-day's stock market ed-
versely, and 1t is probable in realty that
It was the least influential Of any one OF
these. The bond issue has been under
written by representative bankers, and
there is no fear that AtchisOn VIII not
get its money from the undertaking.
Wage Increase a Factor.
To-day commodity prices were much
higher in the early trading than they
were yesterday, owing to renewed IN
favorable reports respecting the new
crops OF wheat and cotton. Again, to-day
the pessimistic mood in the financial dis
trict was such that unfavorable infer
ences were drawn from the announce
ment that the Pennsylvania Railroad
Company had decided to make a general
advance of 6 per cent in the wages OF
all its employees receiving less than $50.
a month each. and from reports which
seemed to receive a species Of unofficial
confirmation after the close Of business
that the United States Steel Corporation
had also decided TO make a general ad-
vance in its wage schedule.
The prevailing theory seemed to be
that action of this sort would initiate
against increased dividend distributions.
Some idea, however. Of the way in which
employing corporations propose TO recoup
themselves from this process was gained
to-day from the announcement that the
New York, New Haven and Hartford
Railroad Company had filed with the In
terstate Commerce Commission, schedules
Of increases in its passenger rates, these
advances being due to the increase IN
wages made recently to the company
employees.