New-York tribune., 1904-10-03
THE WEEK IN WALL STREET.

Further activity on the part OF bun poo's 9-4o
individual spectators who are in favor Oh
higher prices the leading feature IN iast
weeks stock market. and in the greater part of
the week operations for rising values were sue
cessnll especially in the United States Steel
shares the Hartman issues and some Of the
hard coal stocks. The upward movement how
ever was NOT accompanied by a widespread pub-
lie demand for secVSities but despite the abb
sence Of an active ostside inquiry strength was
wei maintained. while the erorts or the pear
element at various times to bring about an i'm
portant reaction were not at all successful. New
ertl,eless there were a number OF traders In the
Street who maintained that conditions did not
warrant further advances in quotations. their
arguments being based on the unfavorable net
statements Of many railway companies for Au-
gust the large loss by the banks in cash hold
sngs the uncertainty over the extent OF this
GEARS corn crop and the enormous apprecia-
r!on which securities have enjoyed since last
spring on the other hand. the bull leaders eK-
pressed confidence in their ability TO bring about
further material Improvement in values The
latter spectators are proceeding on the theory
that money on call VIII not rule above per cent
this fail that the yield will be well above
two billion bushels. that the advance IN securl-
ties in the last few months does not measure
the actual worth of investments and the ex-
pec4ed industrial revival and that. despite the
q a
side operators viii soon be induced TO come into
the market This theory that the public will
soon begin 10 buy stocks in quantity does not
take into account the fact that the outside ele-
1rent has not yet recovered from the losses suf-
fered IN the bea- campaign of 1903 Although
there is more money in the country than ever
before. it is poorly distributed and probably
more closely concentrated in the hands Of few
than At any time IN recent years.
in he rpni
created an unfavorable impression in Wall
Stneet circles one of which the announce
Enent by the management Of the New-York On
tarto and Western Railroad of its intention TO
declare. with the approval of the stockholders
dividend OF 3 per cent the funds necessary for
this payment to be raised by an issue OF bonds.
Many stockholders OF this company have been
clannOTing for several months past for the dis
solution OF the voting trust which could only be
accomplished through the declaration Of livi-
dend. and in order. so the management says. TO
give the stockholders what they desire. Il has
bean decided 10 dissolve the voting trust and
place the responsibility for the future success OF
shs property IN the hands OF the stockholders.
u Is admitted by the present management that
the road IS IN need OF further heavy expendi-
sures its physical condition. and it is proposed
20 issue Sl2.o0O0O0 bonds. out OF which the divi
tend VIII be paid and the balance used for bet
Garments and Improvements. Wall Street is ask
ing why the management should declare a divi-
8end OF Per cent. which calls for 81, 743.419,
Huhsn the voting trust could have been dissolved
ey the declaration OF per cent or less. Ger
Eafniy the plan OF paying dividends out OF bond
sales, by which the company's fixed charges are
sncreased, is not IN line with the conservatism
that has always in the past marked the manage
rnent Of the Ontario and Western. On June 80
last the company had balance Of current assets |
over current liabilities Of only $50 rs although
the report shows nominal surplus OF profit and /
loss OF something over S6OO0000. This item /
however. IS nothing more than a bookkeeping ac- |
count not available in actual cash Assuming I
that the company viii be able TO sell its bonds I
at a 10 AZ per cent basis. its interest |
charges on these bonds viii be a factor in max
ing the stocks chance a permanent dividend !
ISSUE much more remote than II was before the /
present scheme Of financing was announced |
This SOFT Of financing reminds one OF the shock |
ingly bad financial operations that were carried /
on among many American railroads in the sos
and which were in great part responsible for the
serious railroad bankruptcies that began In 1898 /
Although the anthracite coal shares showed
considerable strength last week. reports Of earn
ings Of the Reading and Erie companies did not
indicate booming business in the hard coal in
dUstry. The Reading system for the month Of
August showed falling OFF in net earnings OF
SZoeos2 and a less in surplus after charges of
&24selS, making from July ! a decline in sur-
plus Of $'4495S, comparison being made with
the same month year ago. Taking the Read
ing Coal ana Iron Company alone. examination
On he August report shows reduction I'm gross
earnings OF $56S.73 and in net earnings re-
oucticn OF S253582. making for July and Au-
GdsS combined loss in gross Of 81, ,2j7, ,39S and
loss IN net Of S526.0ls AT this rate Of loss the
Reading Company would show for the year a
faliiEG OF in its surplus of $4.46974S OF
course, the first TWO months Of the fiscal YEAR
cannot pe used as basis for estimating re-
snALs IN the coal business for the whole vea-
as under normal conditions the output OF coal IN
Jnly and August is not supposed TO be as bea,-,,
rs IN other months OF the year This year The
falling off 3as due TO the lighter volume oP es,
eru business, caused by trade reaction and Ia
bor troubles Erie. which made a remarkably
poor exhibit FOR the last fiscal year. shows for
the first tao months Of the current wear loss
in gross earnings Of SS49 52S. and IN net earn
'hgs a loss Of S3l5lOO3. OF the reports received
last week for August striking improvement was
made by Wabash and the Canadian Pacific the
latter company showing a gain in gross earn
ings OF $685. OSI. ard in net earnings se3 SOS
making from July ! an increase OF S799 575 an
Eross and an increase OF S224. .953 in net. Earn
aiss OF this company for the FIRST three weeks
II august bring The gain IN gross up to nearly
Fi'V0o"OO Hom July J. Hs compared with the
same period last Year. This company is max
ang remarkable progress and its Growth epan-
clAlly ana physically finds a reflection I'm tbe
good absorption OF its stock in the London ana
.1 .oca4 markets. The actual growth IN the roads
1o,ll.ase s ll tne last nine years comparing the
toinpdnys last annual report y,.i.b 80 g. S1sar
SHOWS a gain Of 6,S5l 22) tons " ''
Wall street @as filed with rnanv rumors af-
.eCIns various companies, tips 10 buy different
irpu fe1 nl