Arizona republican., 1898-02-03
A Late Sharp Upward Turn il
 the Prices of Stocks
PROSPERITY OF RAILROADS
Assigned as One Of the Causes
 of the Vigorous Tone
An Sther and Mov. General One ia the Great increase in Deposits and the Gain in Reserves Seeking An nOutIet.

An Outlet.
 New York, Feb. 2.-(Special.) al.)-D1r- ing the past week the Wall street mar ket has taken a sharp upward turn. The movement has disregarded the, furry arising from sending the man. Of-war Maine to Havana and the sen sitiveness created by the Teller 1eso- lution in the senate. It has arisen in part from the growing bull feeling cn the stock market, but more specified from certain conspicuous facts show ing the striking improvement in the finances of the railroads due to the last six months increase of traffic. A statement has been made of the earn ings of Rock Island covering the las nine months showing an increase in net earnings, over the same period of last year, amounting to $1,5O0 GOO. The gross earnings of Missouri, Kan sas & Texas for the last six months are reported at s7,000,000, which leaves a surplus of $1,1G0,O00 over operating expenses and fixed charges, for dispos- al at the discretion or the manage ment The Vanderbilt stocks h@ve also shown a large advance, upon somewhat indefinite but apparently well founded outgivings of new and favorable arrangements in connec ion with the New York Central and Lake Shore systems. It is also stated that it is intended not only to merge the West Shore organization with that of the New York Central, but also to bring the Lake Shore ac tually into the New York Central corporation. Also it is intima;e ed that the scheme undar consideration involves a union of ths Lake Shore and the New York Cent tral under the latter name, with ad vantages to stockholders of both com panies. Further, the deal is under stood to embrace the incorporation of the Michigan Central in the Vandef bilt system, by exchanging it's stock for per cent Debentures of the Wes- Shore railroad, at rate mot yet stat ed. Also, the election of MT. Depew as a director of the Ontario & West ern is construed as implying a. deal between that company and New York Central; this, however, lacks official confirmation. But these reports, cou- pied with the reduction in fixed charges through the reconstruction of the debt of the New York Central, has naturally caused large buying of the Vanderbilt stocks and raised an expectation of a permanent increase in the dividends of the New York Central. These facts, coming stimuli taneously to the surface, are construed as showing process of decided re- covery in the financial status of rail- road properties at large. At the same time. the continued light cons,ruc- tionS of new lines is viewed as a fa- vorable factor. For the last five years the: construction of new roads has averaged barely 1,500 miles per yIear, or less than 1 per cent, while the concurrent dncrease in population has probably been not less than 12 per cent. Now that business is re- viving in all parts of the country this is a factor which must have a very important bearing upon the earnings of the railroads; for there is not only more freight to be carried, but rela- lively less road to provide for it, than five years ago.
 The foregoing are the special causes of the marked revival of the tone oi the stock market. In addition, the improvement has received support from the general large increases oi current earnings, and from the ten dency towards growing east in the money market. The extraordinary increase in deposits and the large ga.t in reserves shown by the last bank statement are evidence of the grow ing accumulation of funds seeking em ploymen mt at this center. These banl figures, however, only partially ex press the real extent of the plethora It is nece ssary to take into accoun also what we are lending to Europe In my advices of last week, referenc
 was made to the large amount t which New York is under advances t
 Europe. Those loans have since beal increased, and it appears doubtful whether s5O,OOO, 900 would now cove the total Other home centers hay
 made like transactions. I have drec
 knowledge of two loans of $2, 900, ,OJ
 each to large German banks made b
 Chicago banking institution at
 to AZ per cent, and other like tran
 sections are said to have been mad
 at Chicago to an amount approx
 mating S10,OO0,0OO Advances to Er