New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-04
STOCK MARKET OPERATIONS.

Of the total transaction in yesterdays stock
( market. amounting TO something more than
500 600 shares. about threequarters OF the bust
ness represented the dealings IN ten issues.
Union Pacific and Reading being the most con-
spicuous features Though trading centred
TO a great extent in few securities, there
was evidence Of a wider interest IN the market.
a reflection of which was presented in operations
on a moderate scale in stocks which of late
have been practically inactive and in the gen.
eral advancing tendency which was recorded
throughout the list in the best part of the day.
final declines being due to realizing sales and
renewed pressure from the shorts the eX-
haustion of the early buying. In the last hour
AmaIgamated Copper, American Smelling, st.
Paul. New York Central. Reading and Union
Pacific sold down a point more from their
high points. but in the case of Reading much of
the loss was recovered just before the close on
renewed buying from the trading element. The
mornings advance was conducted in the face
of adverse reports from the crop section Of the
country for winter wheat and cotton. trading
evidently being based the theory that sub
stantial interests were accommodating stocks.
especially in the Hartman shares and Brooklyn
Rapid Transit the latter issue being one OF the
strongest shares reported. at net gain of 2is
per cent. When it became apparent that the
buying demand would not the day out
traders changed their position. and were helped
in their operations by number Of unfaVorable
railroad reports and by indicated loss in the
amount of cash held by the banks from the
known movement of money in the week. which
suggested an adverse showing in to-day's bank
statement.
Interest in the Hartman securities from the
investment point of view doubtless Will be IN
creased as result Of the publication Of the
earnings OF the Union Pacific and Southern Pa
tba Of Union Pacific
shows an increase in gross Of s1O93,87o and an
increase in net of $15O606, while Southern Pa
ci1c's gross increased $1,115,7S6 and net de-
creased $56S, 90S the falling OF in net by the lat
ter company being due to an increase In operat-
ing expenses of 81, 6S4 .694 Both roads expended
from earnings large sums on their properties
I'm the month. and it is quite probable that this
policy will be continued for long time TO come.
the payments on this account being possible
without interfering with dividends in the near
future though it is rea sonabe suppose that
d constant repetition of the March decrease in
the Southern Pacifc's net returns eventually
will compel the company to reverse its dividend
policy. 1t Is quite evident that the declaration
of the annual rate of 3 per cent on the common
stock of the Southern Pacific Company last
August was not based a strictly conservative
consideration of the best interest Of the company
while the same thing may be said of the 10 per
cent rate established by the directors OF the
Union Pacific, particularly at the time of the
declarations it was known to the directors that
both companies would be compelled TO spend
vast the physical needs OF the proper
ties notwithstanding the large amounts already
put out this account. Union Pacific justi-
fes its 10 per cent dividends on the basis that
the company is earning a large amount of
money and is receiving a big income from it's in
vestments in other roads. but apparently It
IA iIs 70 hpar IN ind hat
sibility, that trade reaction accompanied by
panies may develop and that Industrial develop
ment affecting adversely the earnings Of the
Union Pacific also will affect the earnings of
the roads Of the securities of which the Union
Pacific is a large holder
New York Central earnings for the quarter
ended March 81 showed an increase in gross of
only S43o'olo' while net returns decreased So
20S,9S4, operating expenses having increased
S2.I35,lO9. After charges and dividends the
company showed for the quarter a deficit of
S2,4o9,9SS. compared with a deficit in the sama
time year ago Of S4S375 OF course the
March quarter cannot be taken as a forecast of
the other three quarters of the year but the
extremely poor showing in the last three months |
III comparison with the corresponding time in
recent years is disappointing TO say the least
And on top Of these poor earnings comes the |
report that the company soon will be compelled |
to Increase its obligations through the money
market which already holds $25,OO0.O00 of its
notes 30 say nothing Of the roads increased |
obligations OF the last few years and its recent
raising of its dividend a 6 per cent basis It |
should be remembered, however, that with its |
vast improvements completed. New York Cen |
trail, like the Pennsylvania, will be able 10 |
handle larger volume of business. and for this |
reason its friends express no uneasiness over !
the future Of the property.