The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-15
FINANCIAL NEWS
And COMMENT
Striking Display Of Strength
Throughout the stock
Market.
L. s. STEEL THE LEADER
Advance Promoted by Mexican
Indications and Sound
Position Of List.
L. S. STEEL THE LEADER


crowded BY Mexican developments and
considerations. which seemed to give q
favorable turn to the prospects Of setting
our difficulties with Mexico peacefully.
The other was the unm!stakable evidence
afforded BY the market itself that stocks
we're In extremely scanty supply and
would be difficult to procure on any sud-
den expansion OF demand encouraged by
suspicious events As a result strong
dull opening was followed by a broaden
ing buying movement which. although not
remarkably active. was steadily prose-
cuted throughout the day.
Despite traders profit taking sales there
was little recession at any time. and the
close was strong, practically at top fig
ures. The retirement of short contracts,
especially In United States Steel, played
a large part In the further recovery of
quoted values. but there were signs OF
new buying in various directions. Final
changes constituted an array OF substsn-
tiai net gains and total transactions were
more than double the average volumes
OF the first half Of the week
Foreign markets were all better and
An upward slant in American shares
abroad before the local opening gave
prices here their initial forward impetus.
| United States Steel was the leading fea-
which II gave of ability to rise agrees
sively against the depressing effect OF
unsatisfactory trade conditions was a
stimulus to the whole list. The copper
metal group and standard railway shares
furnished influential support to the leader
ship or United States Steel and soma
striking specially gains were made. no.
tably In the Mexican Petroleum H..
sues. which responded vigorously to ths
termination of fighting at Tainpico by the
victory Of the so-called Mexican rebels.
The course of Missouri Pacific suggested
the probability that process OF accumu-
| lation had been going on and was still
continuing In expectation that negotla-
tons for permanent solution of the
| financial problems Of the railroad would
have n satisfactory outcome. Tho Rock
| Island collateral trust As We're weak again.
on the circulation OF rumors that they
would not fare SO well in the pending
| reorganization az some holders had hoped.
but there was no authoritative confirma-
ton OF these rumors, Rock Island affairs
| seem TO be In a state OF suspense while
| the representatives OF tho Rock Island
| company shareholders are deciding what
proposition to offer to the collateral trust
bondhoders. The spectacular aspects Of
| the fresh stage OF the New Haven inquiry
Were regarded as something for which
the full market price had been paid and
therefore as discounted both generally
and specifically.
The early dealings Of the day were re-
markablc for the great strength OF prices
in comparison with the relative dulne..
II was this which Indicated the strength
OF the technical position and induced some
| urgent short covering later on when the
market became relatively more active on
the better indications OF the Mexican i'm
| broglio. The downfall of Tampico
seemed 10 point TO the Inevitable elimina-
. - la. t..n,
informed banking opinion was that the
! mediatory negotiations bade fair to end
successfully In the extrication OF tho
/ United States from an awkward comp.i-
cation. II not In tho more or less endur-
! ing settlement OF the whole problem which
Mexico presents for other Governments az
: We'll as for our own
Financial views were NOT, however. In
entire accord in this regard. In some
| quarters IL was thought that good deal
| OF difficulty would be encountered by
Washington In treating with the Mex
can factions opposed to Huerta.
| In other respects there was mixed
variety of marketwise news. The f'nan-
| cial district Is not persuaded that much.
! II any. business batting legislation can
he enacted at the present session of
Congress In the time remaining, but
qualities Its opinions OF tn. business out
| look, with reserves respecting the char
/
mlnstratlon Is advocating.
| One matter which made q decidedly
| bad impression was the bitter invective
against the financial supremacy OF New
York delivered by the Comptroller Of the
| Currency. Mr.. Williamss Raleigh speech
certainly did nothing to foster that good
| feeling which ought 10 prevail In the es-
| tablishment of the new Federal reserve
| banking system In the administration OF
| which he will have so much power.
| Tho cotton market was again very
| strong and there was some frmness in
wheat. which was speculat!vely promoted
on the invention OF damage stories. The
reports of a respected private authority
| In the grain trade were all to the effect
| that winter wheat was maintaining a per-
| feet condition and that acreage was larger
| than had been estimated.
| The feature of the money market was
the rise In foreign exchange to q new
high level. Demand sterling reached
4ssL, but for the moment its advance
seems TO have been offset so far as gold
movements are concerned by some re-
covery In the Paris check ,on London.
still tho Bank OF highlands weekly re-
turn showed no gain in condition and
there was no basis for calculating on any
thing else than the probability of fur
Their gold shipments.
Several important meetings OF railroad
directors were held during the day and
there were FlsllS tutt lNtSr
were characterized by better feeling
than had prevailed IN such assemblages
for a long time 1t Is expected that the
Baltimore and Ohio will shortly offer
$40, 900. 900 OF notes to retire $50 1000 600
OF notes due IN June and provide sur
plus for company requirements. The
Chesapeake and Ohio has sold 40 297
shares OF Kanawha and Michigan At par
10 tho Lake Shore. This stock. which
was bought at - four years ago. has
been disposed of under the court decree
In the soft coal trust case.
Tho regular dividend was declared on
Southern Pacific and the Union Pacific
executive committee recommended quar-
tery dividend of . per cent. This declara.
tlon was In keeping with the reduction
lplan announced with tho declaration oi
the extra dividend of Baltimore and Ohio
shares from the company's treasury, and
official assurances have been given that
" the extra dividend ~ permanently ems
Joined by thu courts the Union Pacific
stockholders may expect he difference be-
tween dividends at the rate Of and Ia