The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-05-05
eossER q 80 ern1Er.

by some prominent railroads On Friday.
and % some extent By further reports OF
crop damage. although che latter factor was
largely Offset by predictions Of warmer
weather and an actual rise In temperature
IN the Northwest. Prices went Oh sharply.
but were rallied about the end Of the frst
hour under the leadership Of Reading, only
70 suffer another reaction on the publication
OF the bank statement, which showed q much
heavier loss Of surplus reserve than had
been counted upon. AZ The endfof the SEES
sion the bulls as q rule seemed to think that
matters had gone their way. or rather had
shaped themselves in such a way, in spite Of
some unfavorabie factors. a. 10 furnish tho
bears with little enooura cement They said
that II the weather In the West should i'm
prove to any marked extsnt over Sunday
the opening on Monday might prove quite
interesting. 49,
The bank abatement was thrown out Of
Joint by che inclusion OF Tie figures OF the
Fourteenth Street Bank and by the money
transactions involved In tho payments made
by Baltimore and Ohio for the bonds Of the
Chicago Terminal TTansfer Railroad. The
latter involved temporary borrowing by the
railroad. but the loans VIII be repaid within
n short time. when funds deposited with
out Of town banks and In other Maye; 6Sdtondl
the company's reach at the moment akS ool-
lected and transferred 20 New York. To a
considerable extent the statement was az.
fected by the conditions. that had prevailed
In previous weeks since the low rates FOR call
money induced the trust companies and the
out Of town banks to withdraw from the
market, throwing upon the associated banks
the burden OF loans formerly carried by
them.
When Reading was used TO check the de.
cline In the market In the irst hour no news
OF any kind circulated to: account for the
action Of this particular stock, and apparently
the only bid for popular favor was the APP
pearance a. q buyer OF an operator who Q
year or two ago had been quite active on the
bull side when the historical upward moye-<
ment OF over 100 points was IN progress.
The traders looked op, but those who On the
early break had -thyoEh oyer stock bouGht
the previous afternoon. when the ckart in
dicattona were 50 religiously followed. showed.
no inclination TO take q new position. :
Little vas heard Of the alleged plan Of
Union Pacific TO form. a holding company.
but on the other hand there was q decided
revival Of interest 10 the rumoro that the
company would In the near future ANNOUNCE
some plan OF new financing TO provide for e.
maturity OF existing notes next fail and \
supply the funds TO carry on the extensive
scheme Of bettermsute now being carried
out upon the system. That the money can
be obtained on comparatively favorable
terms was admitted in every quarter. :,
- o..
One Of the most plausible OF the recent
rumors regarding Union Pacific is that aas-
surances have been given by'some OF the
largest interests in the PROPERTY to certain
prominent capitalists that the Aext semi
annuRl dividend, to be declared In August,
would be at the prevailing 10, per cent.. 'fhte. 1
This puts the possibility OF IN ultimate re- |
,duotion so far into The future that &c no longer |
figures as o market factor. Apart altofefher |
from such assurances there could hardly
be any room to doubt that the next dividend
would be at the regular rate. Enough has
been seen OF the current yearis earnings
to make IL absolutely certain that the re-
suits for the twelve months ending June 30 /
next will be better than those for the fiscal \
year. on which the directors felt justified !
In 'basing their action when the present rate
Of distribution was adopted last summer. IL
there was ground for the action taken at
that time there oan be absolutely no excuse
for departing from It at the next dividend
period. The fall dividend will be drawn
from the earnings Of the year now nearly
elapsed, which will leave q very handsome
margtp over and above requirements d. the 4
present rate. and Il 10 hardly to be expected
that the directors. under the circumstances.
will take action that would be tantsrnount
to an admission that the course followed /
ny u gO4N O1clV u Az ~ outcu- |
The best justification Of last years action
will be strict adherehce to it until the con- |.
ditions 81; business ahgnEs materially. 81:
: One reason why southern has been such d
laggard In the market compared with Union
Pacific % found In HE earnings for the month
Of March, which were relatively unfayorAble
account Of the floods Id California during
the latter half Of the month. Az q result OF
washouts and other inconvenlences caused
by the unusually heavy rains. freight traffic
In that State was practically tied up for days
and the company was obliged 10 make eK-
repairs out Of earnings. This implies
that not only was the volume Of business
curtaIled, but the cost Of handling e was In
both factors combining to make the
net feturns much smaller than they would
otherwise have been. With the returns out +
Of the way 1t will be practically certain that
succeeding months win show. up very we'll,
decided that 1t would be better for
Tho success OF their operations that they
should wait until the public saw and under
stood the only unfavorable statement Of the
year before going ahead. l.
Floods In California In the month Of March
are by no means IN unmixed evil. They L
may cause considerable damage and for the
lime being interrupt business, but they mean
IN abundant supply OF water for irrigation
and assure the success OF the states most
crops. Nor Ia the business that they /
tut Oh from the railroads lost permanently.
the contrary the trafic aocumuiates 10
well the volume of business Of the lines Just
Is soon as they get into condition TO handle IL. |,
IN all probability had the interruptions &C.
,urred In the first half OF the month instead i
u the second half much Of the loss could have
,een made UP before April I. but as II was,
recovery will not be made evident until
he April statement 10 published. or course
! factor in the situation, 90 far az Southern
Pacific 10 concerned. 10 that the enormous
rrowth In the earnings of the road within the
past year has severely taxed the company's 81
power. Were the road well supplied I
With engines there IL no estimating what the I
Tolume Of its net earnings would be.
The current months record Of railroad
is likely to prove the most interest.
Of the year. The late spring, the talk B.,
" damage TO winter wheat and the general i
'esslmism regarding the crop outlook are :
likely to be re~heoted-tf they produces any f.,
at all. ANY ourtailment In expendl- \.
ures that might have been. contemplate d I,
W the oountry's business Interests has either '
l..