The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-07
FINANCIAL NEWS
And COMMENT
Heavy Close in stock Market
New York Central Leader
in Weakness.
SOUTHERN PACIFIC BONDS
Report That Issue viii Be
$4,000. 900 ) Per Cent.
COnvcrtiblcS at Par.
SOUTHERN PACIFIC BONDS

After five days of more or less re-
dictionary tendencies the stock market has
not made much retreat from.the extreme
Of recent advance. but yesterday the share
list was distinctly softer than at any
time previous this week. Trading was
not on an especially active scale. As q
matter of fact tile market was dull at long
intervals. except In the afternoon. when
there WINS n degree Of animation in the
late dealings. The indicated lack Of q
buying disposition stimulated some sell
around at about the low prices of tn,
session.
The market seems to be in for some
test of its position in the course of the
next few days. Professional sentiment
has been somewhat bearish lately ana
there has been no little talk about III,
dimensions of the short interest. but this
seems to be Offset by conjecture as Ia
the size OF the newly formed long ac-
count. There were no indications
during the day of uneasiness on the long
side. hut the list as whole did not
offer much resistance to the sharp APP
pliCat!on of pressure. \ good deal of
distribution and important liquidation is
supposed to have taken place on the re-
cent strength of quoted values. hut 80 far
the market has given no sign of suffer
ing acutely from the weight of stocks sup
Piled to IL and underlying support
ing influences have been contributed by
the cheapness of credit accommodate ton
in the money market.
To what extent this might be qualified
by evidence as to the cost Of capital for
corporate borrowers is doubtful. but one
Of the factors in the weakening of til,
stock market last evening was the cir
cumstant!al report that the Southern
faCiiic's new financing was to take til,
form of SJi, 900. 900 of per cent. con
vertible deh,nture bonds. to he offered
10 stockholders at par Presumably IN,
net return TO the company would be
or points yeSs than par. and the report
suggested a rather new line OF thought
for the Wall Street community, especial,
as attention had lately been directed to til.
uufuVorahlc nature of the railroad sltua'
ton 10y current exhibits of earnings ant
10y the Interstate Commerce Commission
attitude toward rate. increases. The re-
turn of the Great Northern Railroad fol
December. with its decrease OF s9si.oo,
IN gross earnings and its loss of 81 ."6@,o
in net income was the latest reminder OF
railroad and business conditions as AZ
f.ct.d by contemporary politics.
Special features of the transactions II
in New York Central and III tn. Roci
Island securities Weakness WAS NOR,
or less general. hut some support W.,
afforded by the comparative frWucss a
United states Steel Mexican T."
troi"um was elevated Regre.siyclv. al
! though oil shares generally sympathi2o,
more or less with III. allaruuud br-ai
| I'm tn" so-ci,ll-d standard oil subsidiary
| stocks in the outside market. Altogethc
I the Wall street day was in striking con
! trast with recent Friday markets. which
have been characterized 10y activity an,
strength. Nevertheless 1t remains to 10,
seen If III" movement of prices was OWNS
To- anything more than technical reaSnhs
although il has looked for several day,
rs though the share list needed new
factors To sustain its forward moN eruc0
the political suusliu" III mid January hay
ing been dimmod .ery much 10y ia" fresi
dr Selopments 1T Washington The Seua
turinl controversy over III" N"N Haven
the prupa gaudH for res llatinu Of Ia. stoCi
Exchanges 10y the abuse of Federal power
and other manifestations of persistent rad
ioalism have initiated against th'
preservation Of the enthusiasm with which
security prices wer" recently lifted OF
, the l"Ncrur" of mon, tary relaxation.
There was less trading in bonds hu
without evidonc, that prices had los
strength The Offering OF Slo.uu0. Gou %
cuban Government p.r cent. bombs g
| - o.. was, ia Il way, motto" of the c'Iup"t'
, ton which outstanding securities mus
r...,.iv. from n,w. ISSUES Tho s.curit,
: ,,4rl,,.ts ahrond dis,,lay.d snmn Sims a.
| h..fu, h,.n ,tr.c,,d by the rush Of r.v
/ r,,,t,uI urn,uutions The Slam u0o n
! tb, U,,yi.,, cny.rnusn, . NOV. cau, l,.,
! nu,.r.d IN I.ondon nj - was promptr
, oyersubscrib.d. but in spit. OF this AN,
/ Il spit" the further lowering of oiiicia
! d;,I,,,,,,, ,.,s ,,t ,,,,,,.b.y.n and st,,l
! holm tho Tnudnn .,n,t ,,,y,l,,.t ,,ns p.u
! .r,ll, ,,..,,io,.ry u...,ip
Mo-, nf the matters ,chich occu,ia,
| II,u S,r.,t utt.r,i,r b,y. olr..,i,. l..,