New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-05-30
FINANCIAL AFFAIRS
STOCK VALUES HIGHER.
Prices .4drance on Light Day S
Trading-Bank Holdings
Decrease.

A
was reported in yesterdays STOCK MAJ he 60,
oil ;rdicetions pointed toward period OF specu-
1ative idleness in the course OF the l!eA'
weeks Values moved under the hlueh.e "
covering of shorts in the greater part % tto
dav showing at the close net gains III an ~
1oodinq issues though material advances were
recorded in only a moderate number OF sAaLeS-
The pressure against the Gould STOCKS "iiiOii
was A feature in the operations OF the pIeCe'ii's
dav WAS not a factor in the trading, missouri
Pacific being one of the leaders in the recovery
at 2 net gain of more than one point Northern
Pacific and Great Northern again were plu up
on gossip of favorable developments ahec'1ls
stockholders but Northern PACING lost most VI
its gain following the announcement OF Ihe
regular dividend. traders having been under the
innression for some unknown reason that an
extra dividend would be paid lhese s'ochs'
with Union Pacific Amalgamated copper
American Smelling. Missouri Pacific Reading
ITnion Pacific and United States Steel common,
sunplied the larger part of the total business
and also furnished the chief price fluctuations
the last two named issues being conspicuous
leaders There was no outside buying, and less
general interest exhibited in the trading
than recorded on any preceding day in many
weeks The weekly bank statement, issued after
the close of business, showed, as expected,
heavy loss in cash and reserve holdings, the
latter declining SIS r15}15. to S1I91o,UOO, which
compares with 81. -. 400 in the same week d
year ago and S6,S16,025 in 1906. In the last
| TWO weeks reserve above legal requirements has
decreased more than S16oO00oO There We're
no engagements of gold for export in the day,
but negotiations were under way which Will re-
suit in further shipments week. Owing TO
the receipts of gold from New York, the Bank
of France in its weekly report shows gold hold
ings of S60S 600 00 the heaviest in the history
of the institution. The banks rate was re-
duced to 81 per cent loans.
Some improV ement is reported in trade circles
! by the commercial agencies, but railroad earn
ings continue TO show heavy decreases in gross
earnings and in most cases in net well, the
falling off in net being especially pronounced i'll
! the case of the AtChisOn and the Reading.
Atchison's report for the last month was worse
/ than that Of March, and the figures may we'll
/ make stockholders of the company doubtful over
the prospects for the maintenance of dividends
! on the common at the current , per cent basis
established at the last dividend period The
company has put into force all the economies
! practical with the safe running of the road and
| improvement in net income can only come
| through active revival Of business or an
| advance in rates, which apparently out of
| the question for number OF months to come
| The Atchlson company operates railroad that
| runs through productive section Of the coIn-
| try. Under ordinary and normal business con-
| ditions II is big money maker, and in recent
! years il has treated its stockholders generously
but it covers area that is quick to feel the
| pinch of hard times. and when depression comes
! il is the policy of the management to nav divi-
| dends basis governed by the extent Of the
|
surprise the Street if further reduction should
| be made in the disbursement on the common
stock At the present rate of earnings the road
| Is making about per cent on the common
| leaving a dangerously small margin for surplus
| account after the payment of dividends at the
| current per cent level Readings earnings
| are less favora bic than those reported by other
/ hard coal companies especially in net which
have been adversely affected by the cornpany's
| apparent ability to keep down its operating
ratio, this item standing at IA Z per cent for
April as compared with COS per cent i'm the
same month a year ago.
Railroad men believe that net and gross re-
! turns VIII continue to make poor exhibits until
I after the fall election, but they are beginning
TO be more optimistic the future and are
! industries just as soon political uncertainties
are out of the way in the iron trade condi-
lions are so much better that interests Identified
| with the industry predict marked imnrovenoep+
| III Gil lhes just as soon as the outcome. of the
Sedi HafFeSts can be reasonably mea s,Ir4,i a.
ldNoiaole- BOND brokers see in the jncrea sins,
oeiioHu ioI railroad mortgage issues A fore,a Il
| OF Detter times in the business world aud ,ba,,
are not upset because OF the. troubles of q 60
railroads. which for reasons rot AFFECTING ,ha
eeneid d railroad situation are experiencing dim
~ II" iieSths interest charges. The troubles
vi some o. the Gould properties ougbt mo, -
affect adversely the bond market -. ' ~
case Of the Gould securities ana 80 AZ u''
issues tilere is no reason for despair ,,,o 80,
iShucs thefe Is ne reason for despsir 80, - -
trouble stronger physically and tinapctaII,. 80.
investors arc not advised TO part ,,.;,L -
HoIolhss OF Gould securities al curron, -
quotations. O4il ~"