The Birmingham age-herald., 1907-05-12
Sales. High. Low. Close.

March quarter, in which the enormous expansion of operating costs was seen to have overbalanced the increase in gross earnings to an extent sufficient to leave a deficit considerably over $2000,000 be- low the requirements for the present dividend rate for that period. From this item it is argued the integrity of the present dividend was endangered. The incident was depressing to railroad stocks in general owing to the inferepces drawn of the large requirements to be met for increased repairing cost by all railroads Its effects was partly modified later by the increase in gross earnings for Aprn
 There was much discussion as to the items which might figure in the increase expenses, regarding which no official in formation was forthcoming. Suggestions of special charges which might be in cluded embraced share of the outlay making by the company for some dam age claims for accidents. The early de- pression in New York Central was ag- gravated also by the belief that large capital requirements remained to be met which would necesSitate an early issue or additional securities.
 The subject of capital requirements was brought into the forefront of discussion in the weekly announcement from the financial plans of the Hartman Pacifics. The four fragmentary reports of this plan, which reached the financial com munity caused acute depression in the stocks immediately, which were commun- icated in less degree to the whole list.
 The volume of the new issues made a favorable impression on sentiment. The $75, ,OO0, GOO Union Pacific convertible bonds which made up the total of the intended issue by that company, although they are to be offered at 90, still represent de- mand largely in excess of the supposed needs of that company. Furthermore, the proposed authorization of $1000O0,0OO of new stock makes provision doubly suf- ficient for the conversion of the bonds
 Beyond this there was the suggestion of a possible large bond issue against unmortgaged mileage of the road. In view of these considerations the addition of 36,000,000 of Southern Pacific preferred stock to the intended emissions, of which there had been no intimation in the pre- liminary rumors concerning the opera tion, had a cumulative effect on senti- ment. The nature of subscription privi- leges themselves prove that they were disappointing to some speculative antici- pations. The force of the first unfavor- able impression of the Union Pacific plan was modified to some extent by riper con- sideration, which took more account of the limitation of the proposed new stock to the conversion requirements of the bonds, of the large element of refunding or floating indebtedness involved in the plan and of the fact that much of South ern Pacific obligations for which provision is sought, is to the parent company, Union Pacific.
 The plan thus presented itself as, in some part a desirable alternative to the more temporary expedients of note is- sues which have been a necessity for raising capital for some time past and to be accepted, as possibly a sign of im- provement in the attitude of capital to- ward railroad investments. The opinion held toward the Incident thus took on a mixed form in regard to the Atchison convertible bond issue, of which the sec ond view was the more favorable.
 The crop situation continues to maintain its influences on stocks, which has been to cause doubt and uncertainty in con fornity with the still indefinite prospects. Money conditions have been slightly frmer with the decline in conditions of the New York banks and some special syndicate requirements in the money mar ket. Foreign exchange as a consequence has weakened and any prospect there was of immediate exports of gold, has passed The improved prospect of the public utilities bill at Albany has caused some special depression of New York corpora ton stocks.
 Bonds have been dull and rather heavy on account of the anticipated pond is- sues.
 United States 3s have declined F per cent on call during the week.