New-York tribune., 1904-09-04
The Financial World.


Efforts were made to create alarm by fantastic
stories of crop rufn-some July statements from
the territory which suffered in that month by
flood were distorted harbingers OF failing,
earnings-but against all attack the market has
presented a serene front. Crop records are IA
vorable.
The annual statement of the Erie Railroad for
the fiscal year ending June 80 1904. was made
public last Monday. II showed gross earnings
practically unchanged compared with 1908.
Here are the exact figures:
1908. SO SsO413
I9O4 4j2O1 .163
Operating expenses increased S25OOO0O and
income from other sources than earnings de-
creased S6OOOOO. The net result was n balance
prior to payment of dividends of $3O1 732.
against balance of the same date IN 19l3 OF
SI,G24.S14, For the 1904 period the full per
cent dividend paid the first preferred
stock against only 31a per cent for the 1896
period. the increased payment amounting TO
about S250O0O The net result therefore. shows
a surplus on hand June so. 1904 of S1,09S. .O}6.
against a surplus of 50 94S $50 on June so 1903.
At first blush this looked like a very bad state
mert, and the bear party FASTENED TO proclaim
the decadence of Erie and sell the stock short
Due account was not taken of the reason why
operating expenses increased so heavily. There
gross returns but it is well known that the win
ter Of 19O3-'O4 was the most severe ever known
in its effect upon railroad operations-and Erie
was the worst sufferer. This accounts for in
crease IN operating expenses. The statement
also shows that the amount charged off for i'm
provement and betterments for the 1904 period
nearly doubled that for 1908
There be question about the future OF
Erie. 1t traverses one of the richest sections Of
New-York State-a territory where population
Is growing and wealth accumulating-and the
management OF Erie is now in able and pro-
gressive hands. Frederick D. Underwood. its
president. stands in the front rank of railroad
executives. and he enjoys deservedIy the COM
plete confidence and support OF his board Of
directors, among whom included D. O. Mills
E II. Hartman. James j. Hill. Charles Steele.
Samuel Spencer and H. NICK Twombly. This is
a strong array Of commanding ability With
such support Mr.. Underwood's administration
can be relied upon 10 take full advantage OF
every opportunity offered to increase the pres
tige and fortunes Of Erio
Incidental to Eries present strength IN the
security market are foolish tales that the powers
in control had sold enough OF their stock to
place ownership in jeopardy and that they were
now being forced 10 buy it back Quite the
contrary is true. Sales OF Erie have been made
by shortslghted bears. and 1t is they who find
themselves compelled to reD--cha=e.
There is nothing unusual - professional spec
uIators making poor calculations in attempts 10
construe security market conditions on the basis
of railway reports-reports that cover opera
tions past the discussed Erie statement does.
BY OF illustration, NIet-opoliraD Street Rail-
way gave significant example al the close OF
the Stock Exchange week. MetropOIitan's an
nual statement issued showing big deficit was
hailed throughout Wall Street as discOuraging
Metropolitan stock forthwith fell one-haIf OF
one per cent and then with snoothness ad-
vanced three full points. Suggestive tokens Of
this character are not few. Market values are
registering now on what is and what seems sure
To be-prosperity; what months ago could be
considered as threatening marshals no influence
now. And this. in the conservative view, is
what should be-nornaI and heaIthfuI-
Conspicuous among the groups Of stocks re-
hecting betterment SO substantial as be no
longer in any wise doubtful have been the
Hawley propert.es-aud as has been repeatedly
insisted here, all these securities are fairly
titled TO appreciation for the reason that every
one of them has been selling far below intrinsic
value. With Toledo. ST Louis and Western
this groups leaders are Minneapolis and St
Louis, Iowa Central and the Colorado Southern
issues, and with the general markets quality
unimpaired not only are advances probable but
close at hand.
or course. further crop killing stories may bs
eXpected-trained and imaginative experts. who
can give points 10 writers Of fiction. have at the
most couple OF weeks left in which 10 exercise
their ingenuity; for the wheat crop is harvested
and cannot he killed in the barns. and the corn
crop is rapidly escaping the killer. In the
southernmost regions corn is already being har-
vested-day by day the frost danger line sweeps
uorthward-with fair weather from now till
Tuesday when the Stock Exchange rsOpenS cora
along such systems as the Atchison, Missouri
Pacific. Southern Pacifc-in fact. say along a
line south of Iowa-wilI be beyond reach OF
damage. In northernmost regions frost Is
menace until about September 15. but the plant
this year is so hardy of growth that only
usual frost-known out West black FROST
could hurt it. The Department of Agriculture.
State bureaus and railroad statistical depart
ments unite in expectation Of n corn crop
equaIIiug or excelIins any harvest ever resped-
and corn is worth over fifty cents a busheI IN
Chicago.
The government report OF the average COndi-
tiou Of cotton on August % gives it as S41
compared with 91.6 I'm July. This is eleven
points better than the average for the last ten
years and three points better than the average
year ago. Prior private estimates put the
condition fully ten points lower than the gov
ernment. This means more than average
crop of cotton-and cotton is selling In New
York at between ten and eleven cents per pound
-Tbera i an element of the comic in the