New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-02-22
flHdurial
The Financial World.

decrease in the surplus reserve, and fourteen
million increase in loans. would have raised
visions OF sight money and renewal Of the
December high rates. as there will be no
business doing till Tuesday. the interval will
give time to consider; but II is hardly probable
that consideration viii bring belief in in1ms.
date higher prices The best thing for the
market now is continuance in the condition
that it is in-narneIy. dull which Is merely the
resting before the Spring opening
All the time while this dullness continues
the surprise grows at the increase in the loans.
who is borrowing all this money! is ore OF
the most frequent questions I'm Wall Street.
Certainly it is not for the daily operations IN
the stock market. for they have shrunk 70 very
small proportions " must then be largely
commercial such as IN times OF general bust
ness activity take place always before Spring.
and possibly there is some addition through
financial operations in connection with raising
new money for several large raiIrosds-Erie.
for example
In respect to this COMPANY it would appear
that the 10 millions to l. Immediately raised.
viii be followed by IS millions more md th1t
there will then be } period Of rest. while this
money is being spent. The p millions remain
ing Of the 80 millions authorized By tde new
plan Will be held a reserve force L cannot
be said that the public received the Ere plan
with any degree Of enthusiasm Since its pub
LEGATION there has been a decline in all the Ere
issues, although the phenomenal increase in the
earnings of the company ought 70 put them Up.
But it is noticeable fact row. that increases N
earnings are expected a matter % course.
and the lifting power they should exert On the
market seems to be lost
Probably the reason for tbs IS. that prices %
securities and the calculated returns upon tasrn.
have pretty arly reached an equiHbriuu-fo-
the time being. This applies TO the great sys-
TENS whose stocks occupy the principal place n
the market Smaller concerns. whose affairs ara
in process of change-as HO king Valley. St
Louis & San Francisco. and some few others.
are not in this category They may be classad
among the specialties. But for the big systems.
while every week tells the same story Of IN
creased gross earnings. there comes with 1t the
tale of increased expenses, so cutting down the
net; and with this also. come the constant new
capital crea tons, increasing the charges against
the increasing gross revenue
This is the case with the New-Tork Central.
whose stock proved one OF the weak points II
the past weeks market The conpaSy is doing
an enormous business. but it showed a very
small net surplus after dividends; so sular. in
fact, as compared with the big aggregate Of &C
counts that very little bookkeeping manipula-
ton could make the amount either surplus or
deficit And on top Of this comes the alb
solute necessity Of greatly charging its terminal
facilities which of all things. is the most costly
operation d railroad corporation has forced upon
it This will require a great deal Of money, and
the price OF the stock has been up rather to the
level of the gross earnings than the net 1t is
understood that the new capital creation. being
a stock issue will be made April
The Louisville & Nashville is another COM
y-iII mt ~
ket with new issue. somewhere about - milk
ions Part Of this is 70 take UP securities now
OUTSTANDING What the large remainder is for.
has not been announced. 1t was only recently
that the company sold five millions OF ne"
stock, on which occasion control of the prop
erty was bought by Mr. Gates and his assoei~
ates This new and much larger stock ISSUE
coming so quickly after the other. and on the
change Of control, is in the nature of surprise
It suggests the inquiry whether some ne" ann
large extension of the system Is IN contenpi4-
ito, and if so what it is; or whether the new
managers after gaining possession, discovered
that the property was not in the condition
+ba,- sunposed it TO be at the time OF pur-
chase
The rand advances of late in the san Fran
cieco stocks have caused considerable guessllS-
Some people have the theory that the Fen-s9 =
1-onia Corpanv has been acquiring control -
,se the system against the ambitious designs OF
NJ Could since in the hands or so poWeILui d
cornoration as the Pennsylvania. the san + ran
cisco system could do serious damage 10 IN7
Missouri Pacific 1t Is. however. against '.i7
sAtt1ed policy Of the Pennsylvania 20 cross tAe
Mississippi. It's western terTnlnl are - LUIS
and C,ricaeo and beyond these II has always r.
Fused ~ go There is TO evidence that II mas
changed its policy; and asto lighting Nj GoOiu'
- can do that we'll enough this side OF me rlVet-
Some people likely 70 be in a position TO AnoN'
saw that all signs point to acquisition OF tne
nronertv bv MI Morgan; which. if true means
that he has some one to sell ii to- MIR. Morgan
will buv ANYTHING he sell. sell IN nliA' or
sell retail preference being given TO seIllnS III
hulk as being the quicker and cleaner transac-
+i,r AnnarantIy- there was competitive buying
:, +bA San Francisco three issues-frst. second
and common-the latter part Of the week; and
the common outstrippedt the others on the way
M Meanwhile. the / per cent bonds OF the
connpanv can be bought Cheap-out they ooh
vote.
In the matter of prices. attention may Re ol-
rected 10 the curious fact that Union FaclAS
nreferred a fixed per cent stock IS quote4
at about the same figure as the oregon SAoI1
Line ! per cent guaranteed and participants
bonds; which come before the preferred stccN
GALL are part of the L. P. 'systeTn), ana WHICH
-ri,a secure of the + per cent. are entitled TO
ANYTHING above 1 which the Northern SecnI'-
ties Company may pay on its stock, and that IS
oIrsadv having a. per cent The probable eA-
n1anation of this oddly in market prices IS that
U. P. preferred is older and better Known
security than the Short Line bonds
In the prevailing dizziness of the market 4
| small sized sensation vas created BY rald Oh
,,..,t;+a, stool, IN the latter part OF the