The morning journal-courier., 1908-03-23
FINANCIAL REVIEW
Railroad Movements Center of Speculative Interest ct
 Present.
WAGE DISPUTES EXPECTED
Action of Securities During the Past Week Affected by Previous Dis
 counting Operation.

tpaitiheS oPAiotfVP
 The action of the securities market last week was affected by what had been accomplished previously in dis counting an improvement in condi- tions by the rise in prices which had occurred. The attractive profits which had accrued or holding bought before the rise set in, induced much selling to realize, and some moderate broadening of the speculative demand for stocks facilitated this movement. The disposition to take profits was sufficient to make it's impress on prices and the action of the stock market was unsettled and irregular in conse- quence. Added to this influence were some occurrences which raised ques- tions of the rate and the extent to which improvement in business had gone. Action towards reduction of dividends in several cases centered at tention on that subject and the prob
 
 uncasiness as to how far the tenden- cy might extend, The reduction of the New York Central dividend from q six to a five per cent. basis was the most important action in this line. There vas also the passing of the div iGend on Crucible Steel preferred, and on Union Typewriter stock and the reduction of the dividend on the Rio Tinto Mining company, the great cop per mining company in the European field. It has been considered inevit- able for some time past that dividends on some of the railroad stocks would come down and the prices of the stocks have moved to a price level supposed to measure the expected re- duction in the return. The sensitive ness Of prices last week to the news would indicate that some revision of estimate was in progress as to the requisite change in prices called for by the expected changes. The ques- ton was affected by the reports of earnings of railroads coming to hand. the persisting rate of shrinkage in both gross earnings and profits dis closed, and the obstacles which seem ed to be opposed to adjustment of ex- penses to the diminished power of the companies. The previous weeks rise in stocks was predicted to an import ant extent on the hopes aroused by reports of conferences in progress at Washington that permission from tho Interstate commerce commission to tho railroads to raise freight charges was planned, coupled with assurances that wages of labor might be had in 8 proportionate share in the increas- ed return. Confidence in the success Of this project waned in the financial district and fears have grown that tho adjustment must proceed along the lines of reduction of wages, with tho disturbing disputes likely to be involved. The impression is created. also. that railroad corporations are inclined to entertain dividend reduc- ticns as suitable policy to pursue as an acknowledged necessity in con fcrmity with the enforced retrench- Hl'Iil hl uulidS loI stiNlceo bil lHeli lines.
 There were constant fluctuations of speculative sentiment during the week towards the efforts making at Wash ington to work out a legislative pro- gram for the amendment of the Sher- man antitrust law. These efforts are supposed to seek to relieve the res  friction of the law upon all agree nonts in restraint of trade and to permit those that are fair and req sonahle. and. the legislation of the boycott as weapon of labor organ izations was suggested as an adjunct to the plan to secure the harmoniza- tion of interests in it's support. Re ports of the varying prospects of the objects sought in this movement had some corresponding reflection in the securities market.
 Some apprehension existed that the reported rate of improvement in the iron and steel trade was not being maintained in the new orders for March. The United States Steel pam phlet report, when it appeared stat ed that March orders showed the same progressive increase over Febru- ary as had February over January. and this was decisive factor in the better tone which developed in the stock market at the end of the week.
 The revival of investment demand for new capital issues is still await ei. The announcement during the week of the Illinois Central financial plan, involving attra-tiyr subscrip- ton privileges to stockholders dis poses of hut one of many measures for new financing known te he inn pending and considered necessary for carving out proiecta which arc re- He'd upon to furnish demand for com nodities. The attraction intended for the Illinois Central plan did not arouse encouraging response in the action Of the stock. Tn the London market. the sluggish response to new issues of securities in spite of the growing accumulation of funds in bank reserves and the resulting de- cine in interest rates is much com r.erted upon and complained of.