The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-03-16

company had anything to conceal. The
case Of Southern Pacific 10 different. II is'
OF oourre, absurd to suppose that the courts
will intervene to compel the Southern "a
cific directors to pay Q dividend upon the
shares Of the company In order that pool
in the stock may be shelped OUT never
tbeless, the question Ia involved there OF the
fairness to living stockholders Of . railway
concern Of making extraordinary improve
ments upon the property. amounting to
practical rebuilding Of the line, wholly by
means Of appropriations from current earn
ines. Ideally. no doubt, the best way for
a man to improve his private property IL
to do so out If the profits OF his business
without having recourse to a mortgage
loan. But private property will pass TO
mans heirs, while money spent on corpo-
rate improvements II for the benefit OF
future stockholders. Posterity Will proht
by the expenditure. Why, therefore, should
not posterity pay for Il or for some Of II In
the shape OF a bond issue? There are also
charges that the Southern Pacific road Is
being managed In the interest OF another
company, that diversion Of Its earnings
is being made for the purpose OF building
IN the Central Pacific Railroad, from which
the Union Pacific company will derive much
the greatest advantage, and that the Union
Pacific's control OF Southern Pacific is
itself illegal Wall Street may be conf
dent, and probably In confident, that the
courts will hold that there 10 no substance
in these allegations. But the issues raised
are very broad ones. They cover the right
of the Pennsylvania Railroad Company,
for instance, to hold its Norfolk and Western,
its Baltimore and Ohio and Its Reading
shares, and 1t is not a good thing In a stock
market sense to have such dispute going
on. There must also be consideration.
marketwise, OF the loss already sus-
tanned, according to all accounts. by
the pool in Southern Pacific stock. and OF
the contingency OF the liquidation of these
holdings.
Railroad earnings are still somewhat
irregular. and the much discussed question
still remains undecided a. TO the extent
to which increases In railway tariffs are
offsetting the increased cost OF railway
operation. The very decided fears over
this matter last December, In view OF the
decreases in net earnings that had been
reported In previous months, were largely
dispelled In January because OF the great
increase in railway net earnings In Decem-
Der. Analysis showed, however. that this
latter increase ~ dye TO the exceptional
enlargement OF the earnings Of the coal
roads after the strike. and also because
December in 1901 was month OF very poor
railway business. Reports for January
indicate that net earnings will again de-
crease. although but slightly. In February
gross earnings increased very consid-
erably. but. as is pointed out by the
Financial Chronicle. the weather in Feb
ruary last year was more seriously ad-
verse. for railway operations than in any
month for a long period Of time. The
most favorable event last week was the
publication OF the figures Of our February
export trade. II we can keep on making
showings Of an increase Of $4,000 900
month in exports Of breadstuffs and cotton,
we shall soon hear more OF imports Of gold
than Of exports OF the metal Imports OF
merchandise enlarged. but our trade bal
anoe- for the month increased, as COM
pared with that Of February last year,
Ss,eie275 DANIEL r. KELLOGG.