New-York tribune., 1903-04-29
SEX dividend.
BONDS.
THE DAYS OPERATIONS IN STOCKS

THE DAYS OPERATIONS IN STOCKS.
The Court OF Appeals has decided that the
Ford Franchise Tax law is constitutional but
fits decision does not mean that corporations in
this State will be forced into bankruptcy. Nor
does IL that dividends will be passed or
decreased. Corporations that will be affected
by the law well able to pay the tax without
endangerng the interests of their stockholders.
and In the case Of Manhattan and Metropolitan
stocks holders not only have the guarantee Of
earnings heavily in excess of all dividend re
quirenents but guaranteed dividends well,
irrespective Of increased taxation charges. In
yesterdays market stocks were weak until the
decision announced, when recovery set IL
throughout the list. Traders apparently oper-
ated on the theory that, despite the upholding
OF the Franchise Tax law, the decision was
bIlii argument inasmuch as it removed an un-
certain factor which had been hanging over the
market for the last week or more. If the stock
marFnt trader believes that the decision is bad
news he has the satisfaction of knowing shat the
bad news is out and that he will no longer have
IT to look forward to. Traders have been sell
ing stocks for several days in expectation Of
decision In favor OF the State. and the recovery
that followed its announcement yesterday was
therefore not surprising. Early weakness was
also helped by a report that local banks would
ship gold this week While no engagements
have been made by New-York institutions. a
Philadelphia bank has arranged TO send S0po,ooJ
gold to Paris on a special transaction There
is no urgent demand for gold abroad. but if ex-
ports should be made from here the operation
would not be of sufficient Importance to warrant
sales Of securities II is time for Wall street
to strengthen its nerves. Gold exports if MADE
Will not be heavy. gold imports Will doubtless
develop in the fall. and in the mean time
period Of ease in the money market is assured
The local traction shares after early weakness.
advanced in the last hour. Manhattan and
Brooklyn Rapid Transit closing at net gains
and Metropolitan at a slight fractional loss, al
though a point above its lowest The general
market was without feature Call money ruled
at 23z per cent, while sterling exchange weak
ened after the S5ooo00 gold engagement
An important factor which eventually will be
duly reflected in stock market values is the
striking improvement now under way in the net
earnings Of American railroads. Growing net
profits are especially important as factors gov
erning the dividene stability of railroad securi-
ties, and at this time they of more than
ordinary interest. owing to their falling off last
fall and the predictions made that time that
the railroads had reached their maximum net
earning capacity. Returns now coming to hand
for the month OF March show gain for twenty
six roads reporting OF 17.46 per cent, as COM
pared with the same time a year ago. despite
an increase in expenses of over Is per cent.
Improvement is not confined to any part Of
the country. roads in all sections, with the
exception Of several companies in the South
west. report noteworthy gains in net earnings
and IN operating expenses. The decrease by the
Atchison and Southern Pacific merely represent
the policy OF the management of those COM
panies Of continuing extraordinary expense
account for the benefit OF the physical condi-
tion OF the properties. Some Of the more i'm
portant net gains for March were made by
Chesapeake and Ohio. Erie. Cincinnati, New
Orleans and Texas Pacific Central of Georgia.
Wabash. Buffalo. Rochester and Pittsburg and
Wisconsin Central
Eries net earnings increased for March S312,-
23s. In spite of a gain Of S2SS, 794 in operating
expenses gross earnings increasing S601, ,O33.
From July gross earnings of the Erie have in
creased S2,329,716 and net earnings have in
creased s. 306 226. this splendid showing being
made in spite Of the long anthracite coal strike.
II VIII doubtless pay investors to watch Erie.
current indications respecting the progress Of
that company suggest that its securities will be
most desirable issues to hold. The first and
second preferred stocks entitled to per
cent dividends. Last year per cent was paid
OF the first preferred. while earnings showed the
full per cent earned both classes Of pref
erence issues In the bond department the Erie
Pennsylvania collateral per cent bonds are
among the most attractive securities the list
When buyers begin TO come into the stock
ket the Erie issues and Many other low priced
railway shares ought to receive popular atten- /
tion.
The only trouble with the market present is
the scarcity OF buyers. Such q situation, how
ever will not last for any length of time. and it
is not likely that intending buyers will secure
3.l1r h.r
Conditions in the money and stock markets are
favorable 10 q natural rise in Values. indeed.
they are more favorable than they have been in /
many months. The market needs courageous
leader