New-York tribune., 1903-04-12

The weekly statement Of the Associated Banks
showed an increase in reserve above legal
Guirements of 81 1610415 Cash holdings in
creased $627. 800. against Thursdays estimated
gain of about S2.o00.OOo; loans decreased ST.
205 400 and deposits decreased 1881 800 Re-
serve a bove the - per cent required by law
now stands at S3.I41.3O0, against S4,511,I5O in
this week year ago and S1,93S,2OO in 1901.
The position of the banks is better than shown
in the statement, and the outlook favors steady
improvement throughout the course of the next
few weeks, although moderately firm rates for
money are expected. The Stock Exchange was
closed yesterday and the only activity In the
financial district was on the Produce Exchange,
where a sharp break in wheat developed In
Chicago there was decline of from to
cents bushel, selling being induced by the
fine condition of winter wheat. Comment
among bankers on the Northern Securities case
reflected no uneasiness over the situation.
The community Of ownership plan repre-
sented by holding company, may be declared
illegal by the Supreme Court. well as by the
Circuit Court, but it does not follow that the
concentration of control policy. which has been
such an important factor in the railroad world
in the last few years, represented in the uni
fcation of the NewYork Central system, in
the control of the Reading by the Baltimore
and Ohio and the Nanderbilts the control of
the Baltimore and Ohio by the Pennsylvania,
and similar combinations, will be injured. The
case of the Northern Securities Company diff
fers essentially from the community of interest
scheme that developed after the Supreme Court
decision against the Joint Traffic Association.
In the latter case the plan, as carried OUT
notably in the territory served by the Wander
biIt and PENNSYLVANIA lines, merely represented
stock interest of company in another for
mutual protection and benefit. while the North
ern Securities Company was formed for the
specific purpose of concentrating the absolute
control of competing systems in the hands OF
new company which in effect was a consollda-
ton of the roads in question. The decision Is
not considered adverse to the best interests OF
the railroad world. save. perhaps by the peo-
ple in control of the Northern Securities Com
pany Indeed in many conservative banking
circles it is believed that the decision is good
law and that its affirmation by the Supreme
Court will help rather than injure the situation
A holding company controlling the stocks OF
the majority of railroads in the United states
would certainly not be for the best interests
of the American people. Yet, such company
would not only be possible, but quite probable
if the Northern Securities Company were to be
legalZed.
No untoward results will follow the Northern
Pacific merger case. Notwithstanding the ar
General Davis says has been one of the main
noints of the railroad lawyers. Widespread ruin
will not develop. and the people who are now
indulgins in reckless talk of this character are
needlessly alarming tmid investors whose Sc
curity holdings worth more intrinsically
to-day than they were before in the history of
the country. When the Trans Missouri and
Joint Traffic Association decisions were given
in favor of the government there were any
SieI
eral disaster but the railroads continued to
earn money. They became stronger than ever
before and railroad managers found no diff
Guilty in adjusting their rate schedules so as
not to conflict with the law. Northern Pacl1c,
Great Northern and Chicago Burlington and
Quincy. the three roads involved in the North-
ern Securities case, will not earn one cent less
or nav one cent less in dividends a result of
the Circuit Court decision. 1t is not thought that
the stock market will suffer important declines
this week while many observers believe that
the advance which began last week and which
was interrupted on Thursday will be resumed.
People who are worrying about the Northern
Securities decision would better turn their at
tention to the factors in the situation that are
adding value to investments. There are enough
bull influences in sight to warrant the preolc-
ton of an active, rising market before many
weeks go by. The governments crop and DO
mestic export reports. issued Friday, present
adequate reasons for enthusiasm in stocks
| Crop conditions. Of April 1, indicate yield
| Of winter wheat aggregating 520,0oO,O00 bush
els the largest on record by many millions OF
bushels Last year winter wheat harvest
| amounted to 3d. 611 13S bushels. and on April
| | q wear ago the condition of winter wheat. as
| expressed in percentages, was IS.I, against
| 91:} on April this year The big wheat yield
| of 1901 was 429615 140 bushels, or percentage
| on April of 917. Domestic exports for March,
| including cotton. grain mineral oil and pro-
visions, amounted in value to S'o'l4o'o4-' an
| increase in value of S2125S974 over March,
| 1902 Cotton furnished the greater portion OF
the increase S16,31o 15.J breadstufs being next,
with a gain of So 6137.361. while provisions
showed loss of S512 1O4 and mineral oils a loss
of S145.:i3S. For the nine months ended March
81 the exports of these articles, which aggre-
gated $3.50 $50 a93 increased So, 19l,oI4, COM
pared with the like period of the preceding
fiscal year.