Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-16

| he proposed to go bankrupt, If necessary,
in an effort to vindcate his judgment.
| Compilations of railroad gross earnings
made by Wall street news agency show
! the following results compared with the
corresponding periods last year:
| For the month Of November the gross
earnings of forty-three railroads aggre-
gated s57.eS9.3s7. an increase OF s4.2I3. 44s,
| or 19f per cent.
| For the first week of December the gross
| earnings OF twehty-eight railroads aggre-
gated $l,39S.lG7. an Increase Of $ii3G93, OF
! l.97 per cent
| From July to December the gross earns
| ings of twenty-eight railroads aggregated
| $1S2, Jos. an increase of Sl4I5i, SIG. or
SIT per cent.
~
| The pamphlet report of the Southern Pa
| cific Company for the year ended June 80
| last was published today and shows that
| the total receipts increased s2617 $50, and
| that almost per cent was earned on the
| common stock.
The weekly financial review OF J. S. Bache
| & Co. says:
"Superficially the market during the past
week has been very similar in character to
| the trading during the entire fall. Pool
stocks and closely held specialties have
scored remarkable advances, and the gem
eral list has responded by smaller gains.
| Thursdays transactions were the largest
| since September, 1902.
THE attitude of the public Is decidedly
novel, There Is none of the Wild clamoring
| for stocks that characterized the advance
| in 1901, nor is the public In the market, gem
orally speaking At the same time there Is
q large public interest and II Is probably
| increasing, but it's operations are by no
means one-sided as was formerly the
case.
The bulls apparently are still in full con-
| troll Of the situation. and advance stocks al
most at will. During the past few days a
heavy profit-taking movement has been in
| evidence. This began week ago. but its
effect did not become noticeable until the
past few days. Coupled with these realizing
sales was the Inevitable short selling move
ment by the traders. who sold stocks as
feelers to test the strength of the bull ac-
count.
1.-The Russian situation has had. little eff
feet locally. as Russian bonds have re-
manned firm in the face of extending agra
rian and political troubles. 1t seems inn
) probable that anything short Of a financial
crash abroad will have much influence on
| our market. Money rates have eased off
materially and have probably seen their
highest figures for year to come. There
may be a temporary hardening of rates at
the end of the month, in preparation for
interest and dividend disbursements, but
| money should be easier abroad after the
| first of the year, when the annual window
dressing by the foreign banks is over"
X
No surprise was expressed today over the
action of the Rock Island systems directors
yesterday afternoon in making arrange
| ments to curtai or cut off certain dividends
| so as to leave large sums Of money avail
| able for the great expenditures necessary to
develop the system. 1t is taken for granted
| that the new financial policy of the Rock
! Island is largely the consequence of James
xx,ifI T-ptJf
| he became connected with it last winter
| and was made chairman of the Rock Island
! Company's finance committee the company
I was without any direct banking house ALL
| ance although its board Included very influ-
entail capitalists. 1t was supposed that Mr..
| Spriers' Identification with the company
meant that sooner or later a sound financial
policy would be framed which would eventu-
| ally overcome the suspicion and dstrust of
| the company general in the financial and
| speculative community after the big Rock
| Island deal was put through years ago,
| weighted down as 1t was at bonus stock and
| In the legitimate capitalization valued at
| top market prices.
Too few persons have taken the trouble to
inform themselves as to the nature of the
Rock Island organization. 1t is all based on
| the old Chicago. Rock Island and Pacific
Railway Company, which was the former
| name in 1880. and is the backbone of the
ROCK Island system To-Day.
|
| -
The Rock Island Company Of New Jersey
| was formed In 1902 and is purely holding
1 company 1t owns all the stock OF the Chi
| cago, Rock Island and Pacific railroad,
| which was formed In 1902 to acquire the old
| Rock Island railway. which has a half in
/ terest in the Alton railway and owns con-
4 troll of the St. Louis and San Francisco,
H. ax,1 racfa
| lnois which, In turn, controls the Evans
1 vile and Terre Haute. All told. there are
| something like 1900 miles OF railroad in
| the Rock Island system and its mileage is
being rapidly extended.
| 1t would appear now that the Rock Island
credit is TO be established, or rehabilitated.
| on basis Of conservative financing which
| will inspire confidence that the systems af-
| fairs are to be soundly administered. 1t Is
/ said that part of the new policy involves the
| passing of dividends on the Frisco first and
second preferred stocks. as well as on the
!, Rock Island Company preferred. measures
| that would make 81 100000 of earnings
/ year available for improvements
| It is to be noted. however, that the only
| announcement made yesterday in addition
i to the reduced dividend on the old Rock Is
| land railway stock. was that the January
| dividend would be passed on the Rock Is
land company's preferred shares Out Of
a total OF about $75 100000 of old Rock
i Island stock the Rock Island and Pacific
| railway acquired about $70.0 900. giving
| 500 In per cent collateral trust bonds for
each share the Rock Island Company OF
| share 500 in its common stock and $40 in
/ its preferred stock.
| The dividend declared on the old stock
yesterday places It on instead OF an b
| per cent basis. as was the case this year,
making about 81 10000 more OF earnings
available annually for improvements There
Is still margin Of per cent year.
/ however, In dividends on the old stock
/ over and above the interest requ rements
| OF the collateral trust as. II the old stock IL
to be regarded a. having been placed on d
! per cent basis, or $1,600.000 q year. which,
II applied to the Rock Island Companyss
| preferred shares. would make dividend
OF about 8 per cent q year. and all that was.
said yesterday was that the next quar-.
terly dividend on this stock would be
| passed.
The following dividend payments were
not reelected fully in todays bank state