New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-12
THE FINANCIAL MARKETS.
Trade Conditions Sound bit Normal Reaction EntRaroad
ings Heauy-Money Rates Continue Easy
THE WEEK IN WALL STREET.

corded on many DAYS OF the week. there was
little Investment liquidation and no indication
OF Generalization In the market. The greater
part OF the selling was for professional &C
count. especially on Thursday. when material
losses suffered by the majority OF active
ISSUES. The reduction in the steel dividend
and the disclosures in the shipbunding Trust
hearing were not effective factors in inducing
genuine liquidation. but the board room ele-
lnent and some Of the larger outside specu-
lators endeavored TO create uneasiness In IN
veetment circles on the argument that the fan
g. earnings I'm the tron and steel trade ano the
troubles Of the shipyards combination Tore
Swallowed a serious decline in industrial pros
perity in this country, and further adverse ols-
closures in other Industrial combinations IL
IS not admitted in conservative circles that the
developments OF the last week are forecast
OF Industrial depression. It is admitted. how
ever. that a healtnrui trade reaction is under
way. but Ct is contended that the fall in the
prices OF securities in the last year has more
than discounted an industrial setback The
decline Of 81. 642. Cos in the net earnings OF
she United States Steel Corporation for the
last quarter making falling of OF Sa,ouScoo
for the first nine months OF the year as COM
osred with the same time in lSU2, rehects'
OF course. a business decline. but Il should be
horne in MIND that despite this reduction in
uctive and not IN any way in danger Of col
,apse. A normal read5ustment is going on in
che business world from the feverish activity
OF the last few years
TRADE reports are not discouraging. Thes'
reflect uncertainty in some lines and olspo-
sitton among merchants and manufacturers 10
exercise extreme caution; yet the actual vol
rme OF business is heavy and actual weak
spots are difficult TO find. Underlying conol-
eions are intrinsically sound. The redrcton Ia
she price Of pig iron and other raw materials
10 their normal level is not bear argument
.ndeed. IL is a most encouraging sign OF the
shines. Despite the low prices for railroad Sc
,r,r;ttes railroad earnings are heavy In all
sections OF the country. while, according 10 al
indications. the volume OF traffic VIII commune
large for long time TO come, especially as
che country has been blessed this year Win
fountiful crops In the last week of september
striking gains were made by the western anu
eoutbv-estern roads Missouri Pacific, for in
stance. Increasing $4,000. making for the
month a gain Of $4,000. compared with
ehs same time last year. Missouri Pacific is
,,ronertv that is well worth watching. 1t is
being most ably handled in the interests OF
Che stockholders and there is no good reason
90 suppose that the company viii not Always
he a sure dividend payer. All the Gould Prop
critics are i'm good financial and physical 0ollUl-
zion. and the stocks that are not in the olFl-
6end class viii eventually make returns 10 tneIr
holders The extension OF the Could SSsueih 10
,,aevva+er win increase the earnings OF me en-
fire system. , -
v.-,ous railroads published their annual re-
-,s last week and few failed to show splen-
&c gains in gross earnings and Satisfactory IN
,rovernent IN net, notwithstanding the heaFy
s,c-ease in the cost OF operation In the hscaI
period ended June 80. The Great northern
showed a gain in gross Of S4,a53.5SO and gain
an net OF Sc 465. 727. while the income account
presented a surplus OF S4,lo4o5o above All
<barsss and the = per cent dividend on Great
Northern stock. This is a showing that reflects
NOT only the favorable traffic conditions in the
Northwest but also the progressive methods OF
she cornpanys management Lehigh Valley
GAINED IN gross So 734, $50 and in net Sla5o.5o4,
the increase being made in spite OF the railing
OF In coal tonnage Of 80 per cent in the five
s-,onfhs OF the anthracite strike. Results on the
Erie also indicate the wonderful progress made
Nv the coal roads last year, Notwithstanding the
fact that they were hampered by a long and
costly labor disturbance. Fries general freight.
not Including coal. increased in the year 2.07s,-
223 tons and revenue from hauling it $, 43l2'5'
or over Il per cent. For the twelve months the
,onoany carried forward a credit balance to
rroft and loss in amount OF S5.S79i76. This was
after allowing for the 80 per cent paid on the
frs. preferred stock Had the full per cent
been paid on this first preferred stock. the sur
Mus would have been 4.139.714. The per
cent on the 100000 OF second preferred stock
would cali for only 100000 leaving balance
OF So ass, 7i4. equal TO just about 3 per cent on
the Sl12, 37S. 900 Of common stock.
Money market conditions are without the
certain features that characterized the situa-
fion year ago. Call funds are easy, ruling at
25k per cent, against a range OF from to 10
per cent al this time in 1902. Owing TO Secre-
1ary shaw's wise policy OF Increasing public
deposits in national banks throughout the coun-
try the demand on New-York for funds has
been extremely light, and, according to the best
Judges n the money market the outgo Of cur
rency from this centre this fall viii not be
heavy enough TO cause disturbance in the loan
market The inquiry for money from the West
IS unusually light for this period of the year,
the loss in the week ended last night amounting
10 only SI,500oo0 In the foreign markets no
change was made last week in the official dis
count rates. while the open market rates al Lon
don and Berlin were easier. The position Of the
local money market is. according TO the largest
lender in the Street. brighter and clearer than
Il has been at any tine In the last year and q
half. Nearly al OF the un5gested securities
have been taken of and the syndicates that
have had TO liquidste and clean house are now
out CT the market, and those that did not sell
have borrowed money in sufficient sums TO "a Ike
care Of them until after the Presidential cleo
ton in 1904: they have not borrowed thirty TO
sixty day any other short time money. as
heretofore. but have taken long time money and
maid the commission
New low records were made by United States
Steel common and Annalgamated Copper last
week The reduction in the Steel dividend to a
2 Der cent basis means a yield OF about I3 per