The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-05-01
MARKET IS WEAK,
BUT YET ACTIVE
Bears Have Used Every Effort TO
Hammer Prices During
the Week.
RISE IN CALL MONEY
TO SEVEN PER CENT
Surplus in Banks Has Been De-
pleted by Large Exports
of Gold.
BY RALPH EMERSON.
BY Leased Wire to The Tribune.

weak" epitomized the general tone of
the stock market during the greater part
of the present week. Bearish interests
and influences have been utilizing every
Incident of business life to lend an un-
favorable aspect TO the general specula-
tive and investment situation. To some
extent they have succeeded In Intensity
Ing the disposition of the financial COM
munliy TO hold aloof for a time. Call
money this week went 10 per cent, this
being the highest since the month Of
January The calling OF loans was di-
!sctiy responsible for the hardening OF
snc market. The surplus In banks has
baen depleted through heavy exports on
gold. and II was necessary 10 call loans
:hls week 10 make up tho reserve. Hith-
erto the outgo of gold has been out
pahhceu Dy the currency receipts. but
inns week the movement from the In
terror was modified. The New York banks
lost approNimat tely $14.500. 900 up TO to-
day. The interior currency movement
therefore, is shown by n net gain OF
70 eSH.geo, offset in measure, by loss
OF .. 10000 TO the subtreasury. The un-
precedcnted gold flow OF SIT 500. 900
abroad since last weeks bank statement
completed the chief factor of the weeks
cash movement a temporary check has
lalen upon the gold exports by the ac-
ton OF the Bank OF England
covering the price OF consols
.I,po W Lon london. The money market
market factor in the hardening
Of the market We must look
outside Of New York for an
other cause which may have hardened
The market For some time i, has been
limited that the interior banks were be-
coming more and more loaned up and
this situation has been realized by Wall
street institutions. The heavy land spec
ulation has been gaining hold through
out the past few months. The middle
west has now reached proportions which
promise serious consequence Tyins I'M
oi reserves OF interior banks in real es-
tate loans means. OF course. that Wall
street cannot look to the interior as
great reservoir FOR funds whenever there
Is a stinsning OF the rate in the east
ern market. as has been the case ever
since the panic. Appreciation of this
fact IS without doubt the underlying rea-
son In chief for the new developments In
the money market.
The action OF United States Steel dl-
Tectors TINS week in placing the COM
mon STOCK on > per cent basis had a
most salutary effect. and another care
!ul analysis Of the income OF the steel
corporation leads 10 the belief that the
company VIII have difficulty in main
tainins per cent rate for its stock
IN the future. Had The company paid .
on the common stock each year since its
orsanization, there would have remained
balance of s206. 200. 600 available for
new construction. Steel common is now
selling approximately at 82; 1t has
been looked upon as a speculative stock
and the grand rises and falls have scared
away investors
But the action OF the directors rails
ing the dividend makes IL desirable. no
matter what the board quotations are.
and IL is confidently believed that It's
aolders VIII lose the characteristics Of
professionalism.
The feature OF The railroad situation
lust now Is the wage raising movement !
t1iteen Of the greater railroads increased
IA sl..
which include all the affiliated New
York Central lines and all the lines OF
the Pennsylvania system, show the an
nual gross earnings OF spproXimatelv |
sl.l0o 0o0, Their aggregate surplus is an |
nually about S6S 900 900. so II can be seen
tha, wage increases Will not hinder de-
velopment.
At the same time, II is likely that ma
turing plans Will result in the Issuance |
or s200,000000 by various railroads short |
y. Within the past few DAYS there have |
been indications that several of the rail- |
roads are ready TO issue new bonds as !
soon as market conditions become bet |
ter.
Directors of the Chicago. Milwaukee &
and issue a bond for extension and inn
provements. The amount will probably |
be In the neighborhood OF $50. 600 600. The |
proceeds OF the Issue will be used in !
Improvement of the ST. Paul and lis
Puget Sound extension. The St Paul |
proper intends TO spend So, 600 600 for (
double tracking. There is no doubt OF |
the ability of the ST. Paul TO carry the
burden. II II had not been for the Sc |
we're winter: the announcement of $50.
900 600 bond issue by st. Paul would have
no attention. The stock hold
ers Of the c. G. o. have approved appro-
priation TO Issue $31. 200. 900 worth of new
convertioles and sS7,2Oo.oo0 of capital
stock.
In nine months the Baltimore e. Ohio
has earned per cent on It's outstanding /
stock.
The Southern Railway is we'll ahead Of
It's last years earnings so far. The sur
plus for nine months is $4,000. 600 Dam
age to the cotton crop kept down it's
revenues Hard winter and liberal ex-
penses have kept down the figures OF the
Atchison. Topeka & Santa Fe. Nine
month figures are not yet available There
week and considerable copper metal
stock was purchased for foreign ac-
Storms this week did considerable dam
age to crops and fruit. The total loss was
estimated at s675 100000. but this wa
exa ggerated, and 81 Is probable about
half that amount Is nearer right
Adylces from Washington today stated
that final action upon the admlnistra-
ton railroad bill might not be taken until
June and that congress would hardly ad-
5ourn until the first of July
Business conditions In the south con-
tinue 10 increase in prosperity although
the common crop was badly hurt by cold
weather
The bond market continues firm