The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-02-18
SpeciaI to The journal.

Special to The Journal.
New York. Feb. 18.-The preliminary tabula-
ton which has been made OF the gross earn
ings of the railroads Of the country for the
last year does not suggest any marked increase
in the profits Of the great transportation COM
panies Estimates recently made are based on
the returns of 179,86S miles Of railway, or SO
per cent of the entire railroad mileage of the
United States As compared with 1908. the In
crease amounts to only $11, 1877 ,487 against one
Of $92 1884, 1927 for 1902 and one of $143 OF, Sol
for 1901. The fact that there was loss in
earnings Of about 100000. 900 during the first
six months Of last year helps to make the fig
ures more reassuring, but does not sensibly
modify the conclusion that the prices Of railroad
securities have recently advanced with but little
reference to the returns on railroad business.
Assuming that the proportion Of operating ex-
penses last year was not over So per cent. and
estimating the gross earnings Of the missing IA
per cent of railroad mileage, 1t does not seem
probable that the net earnings for 1904 Of all
the railroads Of the United States will exceed
s615 900 600 as against 1892, 900 900 In 1903 and
$500 OOO, 900 in 1902. The increase seems sat
isfactory enough, but the volume of railroad
capital on which some return should be forth
coming is constantly growing also.s
Many people believe that good reaction
ia due, and that period Of heaviness would
strengthen technical conditions to an extent that
would insure much better prices later on N
the season. It cannot be denied by the most
rampant bulls that many issues are selling q,
figures that more than discount all the favorable
factors In the situation and 1t is probable thai
this will become more generally recognized II
the near future and be attended by decline
in quotations. No important setback is looked
for but 1t may be well for traders to be pre-
pared for q speculative movement in favor OF
the BEARS for the simple reason that, irrespect
i've of conditions affecting the real worth OF
securities prices will not continue to move In
one direction indefinitely. Since Jan. the
leading active railroad shares have risen from
an average price OF 1913 to 122.38 while IN
the same time the leading active Industrial Sc
curities have advanced from an average Of 69.4e
to 1925. compared with the period just pre-
ceding the socalled Lawson decline in early
December. The low price last year for twenty
leading railroad issues was 93.35, recorded ir
May from which there was an advance to Hats
in October and further advance to 1898 ir
the first week in December against above 12s
at present.
New Developments.
Advancing values Of late have not been ac
companied by many new developments affect
Ing railway and industrial companies, but the
movements in various issues suggest that deal:
are pending that will materially strengthen
the future of number of important corpora
TONS and stock market values are going thru
the discounting process. At this level the bes
investment purchases are to be found in the
bond market and in few high.grade railway
shares On every hand is heard the remark thai
there are not enough bonds to 90 around. Sucf
state Of affairs is in marked contrast to Thu
situation two years ago. when the railroads and
Industrial corporations were postponing neces
sary improvements or making short-time loan.
because of the Indifference of the investing pub
'undigested securities" which but two year.
ago were SO indelibiy impressed upon the mem
DRY OF Wall street. Seldom has sentiment beef
80 reyolutionized within twelve months. i