New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-29
BONDS.
STOCK MARKET OPERATIONS.

Stool, nnarket trading was sgain intensely
dull with a tendency among the board room
element to work for lower prices Declines
however, were unimportant, except In a Few Is
sues IN which special developments were re-
sponsdble for a moderately active selling move
ment as for instance. Norfolk and western
which lost over a point on the announcement
that the company proposed to put out bonds to
the extent of S35OO0O00. The directors Of the
Norfolk and Western will ask the stockholders
OF the company at q special meeting, which VIII
be held IN June for permission to make an ISSUE
OF bonds for extensions and acquisitions whlch
have been made IN the last few years Since
1888 the growth OF the company's business has
been remarkable, gross earnings rising from
Sill 100000 In that year TO over S21-OOoVOo In
1908 while net earnings have advanced from
100000 in 1893 to S6.O0o.O0o in 1908. This
great expansion in the company's traffic has
compelled the road to provide large amount
OF new equipment, to double track its lines for
many miles TO enlarge its terminal facilities and
70 improve the general physical condition OF the
property. Various extensions have been con-
structed and the expenditures for addiuonaI
lines, equipment and facilities have been pro-
vided either out OF capital account or through
better1nent and Improvement funds created out
of income. The growth Of the road has been
so remarkable that the capital requirements OK
the company secured at the llIne OF llS IeoI sur
ization through the issue Of first mortgage con-
sondated bonds have been practically exhaust
ed The management, therefore. considers II
necessary in order 20 round out the system in a
manner which will increase the value OF the
securities to place a further mortgage on the
road
Naturally Wall Street was not particularly
pleased with the idea OF this new bond issue. es-
pecially as the tendency 10 increase interest
charges by various companies again appears TO
be developing Since the frs. OF the year the
railroads have put up more than S15O.oO0OOo IN
short time loans, which doubtless eventually Will
be funded into a mortgage debt- 1t should be
borne in mind, however. that the money raised
on these notes has been used for i'm
provements which will add intrinsic value
10 the properties, while the same may be said OF
the Norfolk and Western bond issue There IS
little reason TO believe that conditions in this
country Will change to such an extent within the
next two years as TO interfere with dividend re-
turns despite the increases that are now being
made in obligations that come ahead OF dividend
payments The early weakness In the Erie
stocks was due TO bear pressure, induced by the
falling Off in the company's earnings for March
The Erie Railroad in the last few months has
been forced TO contend with many adverse con-
ditions, and the traffic receipts in that period
should not be taken as criterion of the roads
normal earning power. United States Steel
preferred was fairly well bought, while further
speculative operations for the rise were reported
In Pennsylvania The market closed dull. with
& few more net losses than gains