The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-28
FINANCIAL NEWS
AND COMMENT
Union Pacific and United States
Steel Lead Stocks in
. Rally.
NEW HAVEN IS WEAK
Rock Island Affairs Engage
Much Attention-Trade
and Money Matters.

Recovery from the midweek slump IN
the stock market proceeded moro sharply
yesterday. Trading was not on an cx-
panding scale. but the lack Of pressure on
the list made moderate buying operations
easily affective on prices. Toward the
close tho market was advanced rather
abruptly and Anal figures were about the
best OF the session. Some further selling
was carried on for European account IN
the early forenoon. II was soon apparent.
however. that there was moro disposition
among traders to mako purchases than
sales and q somewhat oversoid condition
was quickly developed. After tho first
rally In the morning there was long
midsession interval Of dulness succeeded
by renewal Of the hardening movement
In the last hour.
1t Is doubtful II In a market of such a
professional character anything OF more
than temporary Significance was indicated
by the course OF quoted values. although
the same considerations tend also to de-
prve the more pronounced reaction earlier
in the week OF any Significance. Develop
ments In tho next few days may have
more definite implications. The fact that
Union Pacific and United states Steel sell
ex dividend on Monday seemed to have
something TO do with their rebound from
depression. and these two stocks exercised
a great deal Of influence over the general
market Their procedure following the
quotation ex dividend will lend itself 20
more trustworthy deductions respecting
the underlying drift Of values. In other
regards the market Of tho day could be
accounted for according to the custom OF
traders to reverse operations toward the
week end, process which Is called the
evening UP Of commitments. As In the
last few days transactions have been
largely on the selling side. their familiar
and expected sequel would take the form
OF buying orders.
New Haven displayed and persisted In
the display Of weakness despite the gen.
eral show Of strength. This stock sold
within a fraction of Its low price last
year and seems to have been subjected to
renewed liquidation lately. Recessions
were noted In the bonds of the company
and II Is probable that the explanation was
afforded by the dnculties which seem 10
be In the way OF completing the settle
ment OF New Haven affairs with the Fed
eral Government; difficulties arising from
important differences of opinion as to the
length OF time which should be allowed
for the dlsintegration OF the New Haven
combination Of assorted transportation
properties.
Rock Island matters engaged good
deal OF attention. The collateral trust 4
per cent bonds broke early in the day.
but recovered part OF the loss later
There was no particular reason why they
should have been affected by the au-
thorltatlve announcement that no pro-
vision was In prospect for the payment
OF the May interest. Az this would scem
TO spell receivership. Il is regarded as
likely that before the interest date APP
proaches Rock Island circumstances will
be In "a way OF adjustment which Is not
now disclosed The formation of "A pro-
tect!vc committee for the Rock Island
Company's shares helped the stocks in
question. but 1t Is obvious that the chief
interest Is represented by the organiza-
ton Of a bondhoders' protective commit
tee In alliance with the collateral bonds
trustee. an institution OF recognized indie
pendence. The presumption Is thar In the
pending reorganization the bonds will con-
cede a status to the Rock Island Com
pany's shareholders but the whole situa-
tlon Is one OF some difficulty and OF much
interest to the financial community,
There was late rally In the London
stock market. which was variously as
cribed to the successful underwriting of ~
Canadian Government Issue Of $4,000
600 OF per cent. bonds at 80, 20 the re-
lief which had been exteinporized for tho
difficulties o. tho Paris position and to
some indefinite suggestions that Mexican
AFFAIRS had suddenly become less dis
turbed. II was hard to tell from the do
nestle point Of view whether or not the
Mexican imbroglio was more or less dis
quoting. 1t was certainly manifest that
popular irritation was increasing. al
though II was clear that the Adininistra-
! ton at Washington WAS as firmly deter
mined az ever to avoid departures from
pacific policy. The Mexican situation
has obseured other political factors. al
though It cannot have escaped observan n,
regard that business Is making u grow
ing protest against the programme of
/ trust legislation which Congress IL con.
sidering.
In the budget Of marketwise informa.
tion were included fairly authentic re.
ports of = decline In new steel bushes,
to less than 80 per cent. of the rate OF
bookings In the first half Of the month
The weakness OF steel prices also came ii
for wider discussion. The railroad report,
Of the day showed In the main no change
from tendencies already exhibited II
statements for January. but the return
OF the Rock Island lines was rather strik
ing In that gross earnings increased sl76.
900, which was rather exceptional. while
expenses were 80 heavily reduced thai
net earnings increased s5l+.00O. Tn,
known movements Of money pointed I,
q small cash loss by tho local banks thi,
week. There was no evident change II
! fhA yy,on.v nm rlxot huf fnrcivp vcnanu.