The times., 1899-07-09

The weekly bank statement yesterday
was disappointing one, though something
of the kind had been expected. There
was a heavy decrease in reserve, which
practically reduces the amount held by the
banks to the legal limit If it does not
quite. better statement is expected next
week. The figures are as follows:
Reserve decreased. 50, ,2l2,OIS
Loans increased. 6,96s, 300
Deposits decreased. 2,9lS, 9OO
Specie decreased. ed......-............... BOSS, 3o0
Legals decreased. 4,3lU,eoU
Circulation increased. ..."....-. 4O,'UO
The news of the week, aside from tech
nical masters, has been of the most cheer
full character. There has been wonderful
array of magnificent railroad statements
during the past month, such as perhaps
never was equaled in any like period be-
fore. The ending of the fiscal year will
certainly be followed by similar state
ments in the near future. The granger
roads have made the most flattering show
ing as group, showing that is in some
ways unique. If movements in the stock
market depended entirely on intrinsic con-
| ditions, and il stocks went up in price di-
rectly in proportion as railroad business
| improved, and gave promise of improve
ment in the future, there could be no ques-
tion as to the steady advance of the
grangers TO much higher levels. The other
important railroads have almost without
exception made the same good showing.
| The Atchison situation is full of great
promise, despite the fake stories and the
pessimistic predictions of the bears. The
record of the past year has been one of
rigid economies, and careful and forceful
| management, and the result has been an
immense increase in gross earnings and
an even greater increase in net. The ratio
| of operating expenses to gross earnings
has been cut heavily, although it is said
| by experts that there has been no mig
| gardly or hurtful policy in this regard.
! With this very positive evidence OF pos
| perity in the past it is now stated by Vice
| President Paul Morton, one of the finest
railroad men in the country, that the
system will haul as much grain this year
as last, which practically puts an end to
the croakings about the ruin of the COM
pany's earnings through the failure of
the wheat CROP In all other departments
the company's business is increasing rap
idly.
Rock Island earned per cent on the
stock during its year. The May statement,
which has been pointed 10 by the bears
as a most discouraging one. showed that
than for May, 1898. The cause of this is
directly traceable to the Letter wheat deal
last year, which induced the farmers along
the Rock Island road TO market their
wheat month ahead of time. The May
earnings of the company in 1898 were the
/ largest in the history of the road, and out
of all proportion to the usual May show
/ ing. The fact that the Letter deal had been
the direct cause of this was shown last
year by the meagre wheat haul in succeed
| ing months. For this reason it is not
I doubted by people who understand the
! situation that the June and July state
ments OF the road this year will show
great gains over last years business.
The crop report of the Weather Bureau,
which will be issued early in the week,
will very likely have an influence on the
market, and especially on the granger
] shares, if 1t is particularly indicative In
! its character, either favorably OF the other
thing. 1t is thought probable that 1t will
/ be favorable. As was stated in an article
on the wheat situation in The Times yes
I terday, the best evidence is that the Amer
/ lean wheat crop will be good one and
that there will be material reduction in
the wheat production of the entire world.
Attention has been called to the Sc
this column heretofore. These roads have
made steady progress toward an excellent
financial and physical condition during the
past year. Their earnings have increased
rapidly, and they have expended their sur
pluses wisely in extensive betterments.
The large influence that the deepening OF
the harbor of Port Arthur is having in
diverting considerable portion of the ex-
port grain traffic to these roads has been
mentioned. Southern Pacific, St Louis and
Southwestern, and Texas Pacific securities
seem destined to have large advances in
price in the near future They are par
tieular favorites with many conservative
investors. who believe that the prosperity
of the country is to increase in the COM
ing years, and are picking up many of the
better low-priced securities in this belief.
The statistics of railroad bankrupts for
the first half of the year 1899 are most in
structive in illustrating the excellent fnan-
cial condition Of the railroads in general
throughout the country. There were fewer
roads put into the hands of receivers dur
ing this period than in any six months be-
fore since railroad bankruptcy first ap-
peared- The amount of bonds and stocks
involved was the smallest for a like Pc
riod also. Three roads only were forced tC
take the step, and only one of these, the
Kansas City, Texas and Gully, was al
important road. The total of the bonds OF
the three was S22, 600 and the total
| stock S24,361,00o.
, Norfolk and Western has had fine Sc.
: ries of earnings statements to exhibit dur.
ing the past six months. It is hardly real
. lied perhaps that this road earns a full
per cent on the preferred stock and during
! the past year in addition earned more thar
, / per cent on the common, increasing it
gross steadily and decreasing its operating
expenses at the same time nearly pc
cent There is only S22 900, 900 of the pre-
ferred stock, on which there was earne'
nearly per cent during the year, appar
emily abundantly demonstrating the abil
ity of the road to earn the limited pc
cent steadily from this time on. This stock
on which nearly per cent was earned, i
selling at 20 or little better.
The Ontario and Western during tn
last six months of the year increased it
I gross earnings S450,000 and its net con
. siderable amount not yet made public. Tn
business of this period has been eXcellen
and the outlook for the coming year j
much the best in recent years. This fact
when it is taken in connection with tn
| probability that the stock will be divide
r into common and preferred makes the out
! look for the stock, selling at 27, most at
tractive one.
THE CHICAGO GRAIN MARKET
Wheat Makes Feeble Rally an
Gne. nucI.