The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1908-01-23
WALL STREET NOTES
Heavy Falling Off in Net
Earnings of Railroads.
STEEL REPORT COMES TUESDAY
Traders Await This with Deep In
terest Owing to Its Reelection of
Reading Are Leaders ia Rally, and
other Stocks 60 Up ia sympathy.

New York. Jan. 22-One Of the leading
railroads Of the United States. and an
other road, less prominent, although still
important, reported their earnings for
December to-day, and bore out the un-
favorable anticipations entertained in
Wall Street as to the business results
of that month
The hrst Of these roads was Chicago
and Northwestern, whose gross earnings
OF 1882 90 were Sl090,SS2. or nearly 20
per cent under those for the correspond
ing period year ago. The other WAS
the Pittsburg. Cincinnati. Chicago and
ST. Louis and it showed a falling of of
about 20 per cent I'm gross and nearly
30 per cent in net The latter road is
controlled by Pennsylvania, the other is
the great Vanderbilt line. west Of Chi
cago, Both contribute a large amount
Of traffic to the big Western systems
with which they are affiliated. ana there
fore their results are entitled 20 con
sideration beyond their mere local inn
portanca.
The Pennsylvania statement will be is
sued about March l. and i'm both gross
and net will make an unfav0rable com
parison with that for December. 1906
New York Central. ike Northwestern
does not publish its figures Of net earn
iugs monthly. but the gross will show
a heavy falling of, and there is no doubt
that the statement for the last quarter
when filed with the railroad commission
will make Tt plain that so far the falling
off in receipts has not been counterarted
10 any great extent by reduction I'm the
item Of operating expenses Generally
speaking the market i'm the next few
weeks is likely to be subjected to q Sc
we're test Of its strength by uufavorable
returns Of railroads
Great interest is now felt iu the forth
coming statement Of the United states
Steel Corporations results for the quar-
ter ended December 81 last. The figures
viii be published on Tuesday next. when
the directors will also act upon the diyi-
dends, and the general belief is, while
the rate of disbursement to the holders
of the common stock will not be- changed.
the net earnings for the quarter viii be
somewhat under S320o1.O10 or about So
oU.ooJ less than those for the correspond
/ ing period in 1896.
It was really remarkable how well the
/ street took the news of failures out OF
| town and the unfavorable statements of
railroad earnings. The besrs tried hard
/ to break the market, and succeeded Do
getting prices down moderately al the
end OF the first hour only u find that
their eXertioEs shook out no stock %
/ speak Of. The trading practically ceased
at the low level-alwsys "a good sign
and with the return Of some degree Of
activity there came a tendency toward
/ recovery. in the early afternoon "a fair
rally occurred on covering by timld
shorts but the more aggressive bears
/ renewed their assault ON prices. aud sue
! ceeded In changing the trend OF prices
T before the market closed.
/ American Smelling and Refining and
Reading. the stocks that had led the de-
/ cline. were selected as the leaders of tho
rally that occurred at about noon The
/ reason they We're chosen for this purpose
was that they had obtained prominence
/ ON the other side. Their decline had
caused unsettlements; rediscovery in
them should have the opposite effect. No
/ other argument was used but this one
was sufficient.
When Reading and American Smelling
/ and Refining rallied other stocks sympa-
thized and in a number Of instances. no
/ tsbIy Northern Pacific Union Pacific
Great Northern, and Amalgamated Cop
! per scored gains that were relatively even
/ greater than those made by the issues
which started the rise. but in all cases
I the cause was the samoa movement
/ against the short interest. After ,he
shorts that could bee forced 20 cover had
| been driven in, prices again reacted.