New-York tribune., 1903-05-28
sEr dividend
BONDS.
THE DAYS OPERATIONS IN STOCKS


days market continued for only brief period
IN yesterdays trading After a firm opening
and advances of from i TO l per cent on
fairly active volume of business dealings con-
tracted and prices developed irregular ten
dencv that ended in a general sagging Of values
Closing figures were. a rule, the lowest Of the
day. with about many net losses as gains
The so-cslled uptown hotel crowd worked for
lower quotations and Street gossip favored the
idea that powerful speculative interests were
still committed the bear side of the market
Traders were disappointed over the lack Of pub
lie response 10 Tuesdays advance. There was
no evidence of outside buying power. while on
che carly upward move stocks came out freely.
giving the impression THAI holders who bought
on Mondays break traded for a turn only.
New-York Central was in demand in the loan
crowd. but failed to make noteworthy improve
nent when the general market advanced. while
closing at fractional net loss. Heavy selling
IN Rock Island carried its price down TO the
lowest point OF the year. professional traders
hsmn1ering the issue and forcing liquidation OF
stock bought at materially higher prices. when
this stock was listed the Stock Exchange it
was first quoted at Al from which ii subse-
ouently rose to 535s. against yesterdays closing
at 361s Reading was in fair demand; also the
United States Steel shares and National Railroad
of Mexico preferred the latter advancing on ru-
,nors Of a forthcoming important announcement
regarding the company's future Liquidation in
United States Leather common was due TO the
belief that the company would put out an issue
Of bonds Sterling exchange was strong.
An excellent class Of buying is reported in the
Erie issues and in we'll Informed quarters it is
believed that all these classes of the company's
stock viii move toward a much higher level IN
the course Of the next year Erie first pre-
ferred which is now on a 3 per cent basis. will,
il is understood. be placed on a per cent divi-
dend rate at the next dividend period, and this
will be followed by dissolution Of the voting
trust. Under the reorganization the company
reserves the right redeem either class Of its
preferred stock at par, but it is not likely that
action of this character will he taken for sew
eral years Eventually, however, there viii
doubtless be common stock only. and. as long
time proposition Erie common onght TO prove
profitable issue to hold. Earnings of the company
reflect business expansion along its lines, i'm
movement in its physical condition and intelli
gent management of the Company's affairs by
its officers In April gross earnings showed an
increase Of S517 $40 over the same time year
ago and net earnings increased S95,53I- From
July / gross earnings have increased S2Sf1, ,0o6,
and net earnings have increased 81 401. .763. this
remarkably good showing having been made in
the face Of big loss in revenue from last years
anthracite coal strike
Railroad earnings coming TO hand from
various parts of the country for April and for
the first three weeks in May show falling off
in traffic receipts from the preceding months,
while as compared with q year ago gains are re
ported without important exception. OF the
roads reporting for April gross earnings show
a gain Of IS per cent, operating expenses gain
of nearly 10 per cent and net earnings gain Of
about IL per cent From July ] net earnings
striking and noteworthy gain in view Of the
large expenditures made from earnings in the
year and the increased cost Of materials. sup
plies and labor. There is certainly nothing in
the railroad situation in this country that war
rants pessimism among investors and, even if
there should be a reaction in business from the
present intense activity. the railroads of the
United States would not be forced TO cut their
dividends unless the reaction ran into a panic
OF long duration Railroads in this country have
been financially and physically reorganized since
the hard times Of 1893. Their affairs have been
placed in a position TO Withstand an attack of
business depression, and il Is highly unlikely
that anything could develop that would
wholesale bankruptcy in the railway world.
Conditions which brought the panic of 1893
are not likely occur again although. Of course,
the country viii suffer at times from adverse
factors affecting its industrial activities. The
present indications Of reaction in certain lines
Of trade foreshadow. however greater bust
ness health. The country may do a smaller
business next year than IL is doing now. but
unless conditions governing business and money
become unsOund there viii be far reaching
effect on the actual worth Of securities. The
stock marker has been suffering from troubles
thai have not affected the general business
world II may be said that a slow stock market
panic has been in progress ever since last Au-
gus1 and that speculation has gone through a
purEinE process that has remedied most of its
Ills.