New-York tribune., 1903-02-08
finanrial-
The Financial World.

surplus It speedily recovered again. because
only second thought was necessary to see that
such showing W. due to some special and
temporary cause. IL so far out Of the line
Of the current Of regular business at this time
that IL can scarcely be said 10 bear much rela-
ton to it, One large disturbing cause was the
merger of the Western National and O. s. Ma
tioHSl banks.
The test Of the money market is less the bank
statement than The rate for money; and the call
rate the past week has generally been trife be-
low per cent. Time money there is now no
difficulty in getting. at reasonable rates The
question of gold shipments is brought ND By the
rise Of exchange TO near the shipping point.
but so far there appears nothing in sight which
may send out money enough 10 sppreciably az
,ect interest rates. They are not in want OF
gold on the other side. and consequently will not
offer special advantages TO get il Exports VIII
have to be for the profit on the transaction. or
course they always that more or less. but
with conditions between the markets as they
are, the importer the other side will have to
get his gold cheap if he imports at all There
is no profit in the rates now. IN snort there ia
just new very slack demand for the cou,rsd-
ity in the European HaTkets-which is the situ-
alton in nutshell.
snail increase in the volume Of business
was observable the past week. as compared with
prices. The coal stocks and Erie issues have
been most prominent in the trading; with the
Wabashes coming forward later in the week.
The Street is waiting with curiosity the time
when the new plan fOl the Erie shall be brought
cut; and there is much speculation as to what
form OF financial Chinese puzzle the actuarial
ingenuity of Mr.. Perkins viii give it. His stock
purchase scheme for the employees Of the Steel
Company was marvel in this line. It seems
twice the amount OF stock set aside for sub
scription. has been subscribed for
There was lively outburst of trading in the
Steel steeks when the company won its victory
in the Jersey Courts. RUmors had been current
on Tuesday afternoon that favorable decision
was certainly coming Important decisions al
ways do leak out some way OF etherp; but the
formal encouragement was not made till Thurs
day morning A great buying movement got
under way which in stocks OF less bulk would
have lifted them several points. But the Steels
have to be bought b. the ton to get one per
cent cut of them; and this was about all they
were moved at this time. On the whole weeks
operations, however. they show an improve
ment of about two points.
1t is understood that the conversion plan viii
now be put through It's operation will be to
add 80 millions to the debt Of the company. and
decrease the charges against revenue b. $500
eco annuaIly-rather an unusual cornbina ton
This, of course, comes from the conversion a
200 millions of : per cent preferred stock, ints
300 millions of > per cent bonds.
1t may be noted. apropos Of the looked -foS
scheme to finance Erie. that the second pre-
ferEed stock has gone up more than either of the
other issues; which may be assumed to mean
that this particular issue viii be well taken
care OF in the new scheme.
With respect to Reading common. nov selling
about 63, such a price is suggestive Of what
that property may be expected to 90 in the
future, now that its control is securely lodged
with the Vanderbilt and Pennsylvania interests.
The great strike enabled these ints rests to buy
control very much cheaper than it could possibly
have been done had not SO depressing cause
been at work. The losses to the company we're
unexpectedly large, as the strike went far be-
yend expeetatians; but they viii all be made up
again within the fiscal year, and the outlook for
the Reading p,epeFty, centralized as 1T is now, -
that it will grow into a large money maker. Just
as the Lackawanna or Delaware & Hudson
properties have grown.
The threatened troubles between the an1bi-
tious Rock Island people, and the Hartman in
tsrests in the Southwest, have been averted. 1t
had come to be a question whether the latter
preferred to have the Rock Island people go into
building competitive lines, or to admit them 70
lines already built The latter course was
chosen: and the Rock Island will now reach Gal
weston and the Pacific Coast partly by the road
the Southern Pacific has sold il and partly BY
the Southern Pacific itself The Atchison people
seem also to pe satisfied with the arrangement.
They say it is better 10 have it that way. than
to have new lines built Aprepos OF this, atten-
ton may be directed to the enormous earnings
of the Southern Pacific
The company reports for the six months end
ing December 31st gross earnings Of only trifa
less than 4G millions. This is at the rate ef %
millions for the fiscal year Ths net earnings are
a secondary matter; because. pursuing q fre-
quently declared policy the directors are spend
ing every dollar over fixed charges, in perraa-
nently improving the property. When this wgFk
is done, the Southern Pacific viii be one of the
greatest money makers in the railroad systems
of the country and Southern Pacihc stock IS
the largest asset in the Unien Pacific treasury.
The cloud bigger than a mans hand 70 pc
seen on the railroad horizon. is the persistent
pushing forward to tide water Of the Wabash
system That the Wabash will be carried to
Baltimore is a certainty. When there, it at once
becomes q factor il the trunk line situation. It
invades Pennsylvania and e & o. territory 20
get there; and how the Pennsylvania people feel
about it. has already been demonstrated Truly.
there seems TO be no rest in this pushiHg world
1t took years and years before the great lines
between Chicago and the Atlantic seaboard
could be brought under concentrated control;
and scarcely is it done. before another road
comes pushing over the Allegheny mountains
and making for tide water with apparent
contempt for the cost Of the work. which sets
people 10 wondering who can be the real back
ers of the enterprise. George Gould is az t7s