The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-05-04

| they appear from week TO week and from
month 10 month are conclusive. Perhaps
| the most important matter that ID beine
cleared up at present Is the much discussed
question whether the improvements mace
on the railways and the increased freight
tariffs charged, will or will not serve
to Offset the increased charges for cost Of
conducting transportation and for genera
operating expenses. There was great doub'
on this subject in the railway world last
year. From June to December II looked
to many observers as II the advance In
employees wages, the greater cost of coal
&c. would eat up the railway gross earn
ings; but the evidence that has been coming
in for the last three months points to
contrary conclusion. Gross earnings are
increasing enormously. and the roads are
saving so much Of the earnings in net that
at the end Of the fiscal year they will make
a better showing than they did last year and
will have spent uncounted millions OF dollars
in the permanent betterment of their prop
critics.
1t SINNERS down to this. to speak directly
that there are many railroad systems whose
earnings and condition are now such that
they could with perfect ease and absolute
justice increase their rate of dividend dis
tribution upon their stocks, and that there
is strong probability that some OF these
companies will do so. The Missouri Pacific
Railroad Company is now earning IL per
cent. upon its st ock ard distributing but S.
The profits of the Erie road are such that
between 4 and 5 per cent. is being earned on
the Erie common stock after allowing FOR
full dividends on the first and second pre-
ferred stocks. Erie first preferred Is re-
ceiving present dividend OF but per cent.
and is entitled to per cent, while Erie
second preferred may receive per cent.
and now does not receive anything.
The Rock Island road Is earning sL per
cent on its common shares and distributing
nothing. The Baltimore and Ohio and
Norfolk and Western roads are earning
almost double what they are paying, and
while the conservatism of the Pennsylvania
Railroad in the matter of dividend distribu-
ton upon the shares of its subordinate
companies is thoroughly recognized. 1t
must occur to everybody that the Penn
sylvania Railroad Company is now in a
position where it will find the receipt Of a
large yearly return from its subordinate
companies much more pleasant than it
earnings of the anthracite coal properties
are matters of common knowledge. II
the Delaware and Hudson does not give
its stockholders an extra dividend this
year, it is hard to see how the directors
can avoid purchasing a much greater
quantity of the company's stock in the
open market for purposes OF retirement
than they ever have done under similar
circumstances. There are other stocks
which might be added to the list. 1t is
not believed to be the present policy
of those in control OF the Louisville and
Nashville road to pay more than per cent.
on the stock for a couple of years. But as
the Louisville and Nashville Railroad will
earn about IL per cent, this year, the
per cent. rate paid seems highly secured
with rather more than probability exist
ing that it will be increased later on. Man.
haitian is guaranteed stock and not sus-
ceptibe to an advance in the dividend rate,
but it seems cheap at l42 as a security upon
which per cent. is guaranteed by most
responsible corporation and which ia, In fact,
itself earning the guaranteed sum. Talk
about all of these matters will probably
become more lively in Wall Street as June 30.
the end of the fiscal year on most Of the
great railroad systems. approaches.
Attention must be paid, too. to the success
of the Secretary Of the Treasury's bond
refunding scheme and to the large increase
of the circulating medium that has occurred
because Of it. This increase has amounted
to nearly 10000 900 already, although there
is no great demand for he use Of money.
and competent banking authorities esti-
mate that banknote circulation will be en-
larged 10000 900 by this cause before the
wear ia ont DANIEL + kEJIOGa