New-York tribune., 1903-04-06
THE FINANCIAL MARKETS.
SECURITIES T4LUES SUFFER FURTHER HEAkNESS
Rank Holdings Favorable for the Purchase Of Stocks
at Pre1,aling Prices-Ra'troad Earn ings
STOCK MARKET CONDITIONS.

The decline that has taken place in stock mar
let values in the last eight months represents
depreciation aggregating 81. 1.ooo.0oo.o00 on a re-
ducrion in quotations extending from 20 to oo
points This enormous shrinkage has not, how
ever been accompanied tv q fall in the actual
worth of securities while il has not ar any
time been considered a forerunner of depres-
sion in the oountr3's industrial activities. There
have been various unfavorahle factors in the
eitustion in the last half year that have been
effective in disturbing quotations. but none IF
these factors have been of importance as affect
Ing the trend OF conditions governing the invest
raent worth Of stocks and bonds Careful ex
arninstio-. of the business situation in the
United States brings 10 light no point Of weak
ness no indication Of . return to the conditions
that marked the course of trade and finance in
1893 and several succeeding years Railroad and
industrial corporations are not on the verge of
bankruptcy. business is being conducted on d
sound snd profitable basis the physical con-
oition Of properties not being sacrificed in order
TO pay enormous dividends while the tendency
Of corporate management does not favor the in
PRODUCTION Of the methods that were contribut-
ing causes TO the failures Of ten years ago. A
case in point IS furnished by the attempt of
speculative interests TO force dividend on
Southern Pacific stock against the wishes Of tte
managers Of the property who believe that the
road should b. placed in a position to maintain
dividends before the first dividend is declared.
While there has been and still is much in the
nature for speculative holders of stocks there
IS absolutely nothing in the affair that can pos
sibly interfere with tle onward march Of in
dustrial prosperity The foundations Of the stock
market are fundamentally strong. and sooner or
later this strength will be the irresistible
trolling influence in the course of values. Talk
Of undigested securities of money market con-
ditions. Of labor troubles and OF the Southern
Pacific fight has done valiant service for the
advocates ot lower prices. but il has failed 10
upset the confidence OF careful observers in the
stability OF underlying factors. New securities
issued in the last year represent value
Underwriting syndicates have not yet disposed
Of all their holdings. bur their cash resources
have been strengthened and their ability TO
maintain their position until the public is ready
TO 90 the digesting cannot be questioned. There
may be many undigested securities. but in the
greater number OF cases they are issues that
z
money market situation reflects the country's
prosperity: so Go strikes in labor circles. Money
.s in good demand all over the country, and
there is in circulation S99,000.o0o more than
there was year go. There no more Ia Dor
disturbances than there at this time in
1902, while there is more evidence of a ten
dercy for an arnicable settlement Of all dis
putes Strikes have generally been poor bear
arguments. and people who are now selling
stocks short because other people tell them
that the labor situation will culninate in dis
aster will certainly lose their money
The countrys export trade is growing. ship
ra1ents of merchandise from the port Of New
York alone from January ! showing gain in
value of S23. .464, ,419 over the corresponding pc
,iod cf a year ago. The opening Of naviga tion
on The lakes will help the export business by
releasing grain that is held for shipment
but which cannot be shipped owing to the con-
sestion Of traffic on the railroads. Expansion
in the oountry's industries in the last year has
caused an urgent demand for new rolling stock.
which in turn has caused great prosperity
among the car and locomotive building COM
panies. In the recent report Of the American
Locomotive Company an increase of over 81
Goonpo in earnings was reported, while the
statement of the American Car and Foundry
Company for the three months ended February
shows net earnings Of s.. .426 los. an increase Of
$645 466 over the same time q year ago COM
pared with an increase in the November quar-
ter Of S345. .S79 over the preceding quarter. Rail
road companies are spending q large amount of
money on equipment, but despite these eXpendi-
tures their rolling stock is still too limited to
handle properly the heavy business offering In
order 20 handle traffic successfully in the last
>ew months the railroads have been forced TO
spend large sums Of money in operating ex-
penses. instance OF which is found in the
Pennsylvania Railroads report for February.
which shows on lines east Of Pittsburg an in
crease in operating expenses Of S1.3S2. GEO,
against a gain in gross earnings Of S6T6200 the
net loss thus being S706. SOC. On lines west of
Pittsburg gross earnings increased S3SS. 100. and
net earnings $3.50 700 This gain in operating
expenses is not expected TO continue. the road
IS now rapidly reaching the point where traffic
can be handled with greater economy. In view
Of the increased cost Of handling traffic. the
higher wages paid and the high prices of fuel
and materials. the general showing Of the rail
roads In net results for February is most salts
factory. roads reporting presenting a gain in
gross Of S6.340.041 and 2 gain in net of 81, ,624-
s44 comparison being made with the same time
year ago.
Inquiries have been received regarding the
wisdom Of selling Southern Pacific and Met
ropolitan stocks because of the attacks against
the companies by speculative interests Mr
Anory's attack the Metropolitan company
has not reduced the actual value Of Metropolitan
shares. and the 'rhilanthropic'' efforts Of Mr.
Keene and his associates 10 compel the Southern
Pacific mana cement to distribute earnings u
the stockholders have not damaged the worth
Of Southern Pacific stock a future invest
uaent- Metropolitan and Southern Pacific will
survive present attacks. and sales Of the shares