The Washington herald., 1907-09-22

New York, Sept. A.-The publication 4
the July statements of earnings Of the
Union and Southern Pacific systems sur
passed every other factor in the infiu-
ence which it exerted in sustaining the
strength Of the stock market to-day. In
respect to gross earnings, both roads
made a wonderful showing. and if the
net results were disappointing, the ex-
PLANTATION offered seemed to satisfy the
street so that only the gain in the
other item appeared 10 be considered.
The explanation officially given of the
relatively poor net earnings referred 10
change In the methods OF accounting
10 conform 10 the new rules OF the In
terstate Commerce Commission, and TO
the increased costs Of labor and loco
motive fuel as compared with last year.
It is possible however. that another
factor was the !nadequacy of the Ia
cilities Of the roads for the heavy vol
ume of traffic.
Business has grown at an enormous
rate. and the companies either did not
fOresee the need Of such increase in
facilities as the present volume OF traf-
ic call for. or found It impossible 10
obtain the additional motive power and
rolling stock that could now be used 70
great advantage. orders have quite re-
Gently been placed for a large number
OF engines. but until these arrive It IS
not improbable that the roads shall be
Obliged TO operate at a relatively low
level OF efficiency.
Southern Pacific continues to increase
its earnings at a relatively greater rate
than Union Pacific, the formers gain in
gross for July being S2.237,53i, or 1876
per cent. while the latters was Sl026.l65
OF al per cent. The rebuilding OF san
Francisco although checked by various
causes, stin contributes a great deal Of
traffic 10 the Southern Pacific lines.
Revival Of the TumoT that Brooklyn
Rapid Transit would be placed on a
per cent dividend basis as soon as the
public service commission finishes the
investigation Of the local traction sys-
TENS accompanied the advance in the
stock and the convertible bonds. and
although there might be doubts as 10
! the correctness OF this prediction. there
could be no question that the seasons
Coney Island business had been very
! large.
The probality is that unless undue hard
ships are imposed upon the company. in
| the way Of providing facilities far beyond
what has heretofore been regarded as nee
/ essary by traction interests in this vicin-
| ity, Brooklyn Rapid Transit will within
/ a reasonable time be placed on a dividend
basis. The stockholders have had a Ions
wait for return on their investment, and
while It cannot be said definitely that the
end is In sight. IL is probably true that
the matter will depend very largely upon
the attitude Of the Public Service Corpo-
ration.
Almost every year since the Brooklyn
Rapid Transit Company was organized
there has been a movement in the stock
/ based on the summer business. sometimes
! In prospect. some times after large earn
/ ings have been actually secured. and such
moves have been spoken Of as the in
/ siders annual dividend. There are some
/ who believe that the dividend now spoken
! Of may prove 20 be Of the same kind
Rumors regarding the copper situation
were contradictory, but perhaps the
/ weight Of opinion favored the assertion
/ that a change Of consequence was likely
/ TO occur in the situation IN the coming
week. In some quarters II was said that
substantial additional reduction would
/ have TO be made 10 attract buyers. while
/ In others It was contended that, as pro
/ ductiOn is 10 be greatly curtailed, con-
/ sumers could be induced to enter the mar
| ket by a slight concession from present
quoted prices
/ Whether the reduction in price is 70 be
/ great or small the street hopes none will
/ be announced until the selling companies
1 have good reason TO believe that the new
+ quotations will attract important buying
/ orders. II an active demand for the metal
! could be, created by a drop in the price,
/ 1t would go a long way toward restoring
| confidence, and with this accomplished
/ prices would soon improve.