New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-27
Financial.
The Financial World.


have been the signal for recession in prices.
BY Monday morning. there viii have been time
to- note that deposits also increased over II
millions: and that the loan expansion IS most
likely due TO some shifting OF accounts between
banks and trust companies Certainly the money
market through the week indicated pressing
call for funds. since loaning rates remained com
paratively easy. and became easier as the week
progressed. The surplus reserve was reduced
somewhat, but even with this. it Is larger than
in any corresponding week since 1898. Taken
altogether IT looks as If the January settlements
would be made without disturbance.
The stock market has been OF holiday char
acter. and after the announcement Wednesday
that the Lake Shore had raised its dividend
rate from to S per cent. it advanced. though
very irregularly. The principal advances OF the
week have been in stocks which. as f. some
times said. mo one has, meaning that they are
held by comparatively few people; such as Con
solidated Gas. General Electric. Lackawanna
Delaware s. Hudson. Jersey Central, and one or
two others. While these coal stocks advanced
Reading. which is widely distributed and a
leading speculative. did not advance The trac-
ton stocks were also strong. led by Brooklyn
Recent market movements OF this stock Indi-
cate that either bull pool has been or
ganized in it. that the old one has been re-
organized, which IS probably the fact. That
went to pieces during the summer. when pub
lie liquidation was driving everything down
The members had to take their stock. and tha
selling which resulted forced Brooklyn below
80. The reorganized pool have been gradually
putting up the price since. and the claim "a
made that the stock on this trip win go
to 60. What there is in the property to justify
such figure. it would be hard 10 guess: but
Brooklyn is excellent stock to manipulate IN
certain kinds Of market; first, because It is
not too big for easy handling; second. because
one half the people believe it is not worth
cent, and the other half that it has great future
value. Out OF such division OF opinion, comes
active speculation.
The Rock Island issues bonds and stock have
been weak. for it is known that some more bond
issues are impending and in these days. there
is no bull argument in a bond ISSUE whatever Be
its Justification Then there is also uncertainty
among outsiders what form the new issue will
take. and how it will affect the latest outstand-
ing issues OF the company. The originally pro-
posed 40 million bond issue has, apparently
oeen abandoned; also. the once much boosted
purpose to dispense with all banking aid in
financing the company. 1t will not be forgotten
how the Rock Island management let If be
known that the criticism with which their first
scheme OF expansion was received, was due as
they said, mainly to the fact that they had dis
0uld
do their own financing The bankers were sun
posed not to take kindly to this attitude OF in
dependence Seemingly the bankers have got
the best Of the company, for it is now generally
understood that the Rock Island managers have
had to appeal to the Speyers and that the
SpeyerS have consented to help them out
The company is carrying a floating debt OF
about 90 millions. largely resulting from pur-
ehases OF other roads, whose securities repre-
sent the collateral OF the loans It NAY well be
understood why the managers did not want TO
increase the pile bv such an addition as the mr.
chase of the Seaboard Air Line would have
made. 1t is intimsted that the Sr syers viii take
care Of the more pressing needs of the company.
and that the ambitious financial schemes for
merly proposed will be held in allegiance In
coRnecti"n with this the bankers will put a rem
resentative the Board OF Directors; but
whether the change in the Presidency OF the
company is at their suggestion, Is uncertain
Mr.. Loree. now President Of the b & o.. viii
take charge Of the Rock Island in January. He
Is a Pennsylvania man. The Pennsylvania and
the Great Northern. seem to be the two high
training schools for railroad officials In modern
railroading
In the industrial list. Sugar continued quite
active and advanced The recent drop in the
stock after its rise pending ratification OF the
Cuban treaty is supposed to have been on Wash
tngton selling to take profits; and this being OUT
OF the way, insiders have taken I'D the stock
again. The Steels did little On the second
Tuesday Of January the statement for the last
quarter Of the year viii be given out Ar the
best, it will make sorry showing but there
are rumors that it will not be so bad as latest
rumors have made it. With this quarter the
exhibit for the whole year viii be made; and
what that will be is already pretty well known
something like no millions as against 156
millions last year. The saving on the CHARGES
against this sum will only be known when the
fun report is issued. One thing appears plain
the managers are preparing to run as close as
possible during the coming year fully realizing
that 1t will be one in which severe economy will
be necessary. In respect to the common stock
Of the American Smelling Company it may be
said that the declaration Of dividend had LITTLE
market effect on it. While the rate is per cent.
insiders claim that the earnings are equal 10
10 per cent. To pay ). calls for S2.5OO.OOO per
year.
As the year draws to its close, the outlook
for the coming one is seen to be rather mixed.
Right now there is war cloud over US which
it is to be hoped will pass away. but which
seems very threatening at the moment. OF
course there can only be one end to a fight be-
tween two such antagonists as Japan and Rus
STA; the little man may get in some good ucks
at the start but the big man will take his pun
tshment. and then put in his heavy blows. and
Japan viii be Knocked out The scene Of posi-
bic conflict is a little too far on TO say what
ITS effect will be on this country. Probably very
little. one way or the other. No European
country will Join in. All have interests in the
Orient but not enough to go to war about As