The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1908-04-02
BETTER TONE IN
STOCK MARKET
Hopeful Condition of Erie Stocks
Helps the Market
RAILWAYS ARE IMPROVING
Some Roads Show Higher Earnings
While Many Have Better Reports
Owing to Reduction in oper-
ating Expenses.
RAILWAYS ARE IMPROVING

New York. April IA galvanized ef-
feet was produced upon the. stock naar-
ket at the outset today by the announce
ment that permission had been granted
to the Erie railroad by the public serv-
ice commission to issue $15,0O0,000 of
notes. 1t was assumed that the settle
ment of the financial crisis confronting
that company was thus assured and the
receivership of the company, which was
freely rumored yesterday, thus avoided.
The influence of the news in establish
fishing confidence waned somewhat as the
day progressed. This was due to the
policy of determined reticence followed
by the officials of the company and the
bankers as to the success being met with
in the carrying out of the project.
Beyond the fact that interest due today
on the convertible bonds of the company
was paid no details were forthcoming
of the arrangements for the sale of the
authorized notes, the rate of interest
which they would bear or the terms on
which the bankers would take them.
There was notabletrebound in the price
of the notes, which. mature on April to
81 from the price of 81, at which they
sold yesterday. The discount was felt
to be still very heavy on an instrument
which should be redeemed at par In a
weeks time. These considerations prob
ably had to do with the uncertain tone
which developed in the securities market
after the opening squirt to higher level
Efforts were made to maintain the ad-
vance and in fact prices went higher than
the opening level. Union Pacific was a
conspicuous sustaining force and was
heavily bought on an upward range.
The sharp rally in United States Steel
also relieved the market from the de-
pressing effect of the recent signs of
liquidation in that stock. A good effect
was produced by the February earnings
statement of the Pennsylvania SYSTEM
owing to the marked progress shown in
effecting retrenchment of operating cost
other February statements published dur
ing the day did not prove the Pennsyl-
vania rate of retrenchment fully met
by other systems, the Rock Island, pa
ticularly, showing the operating expenses
still expanding in spite of the heavy IN
road on gross earnings. While shrinkage
of net earnings is controlled by this cur
IdllnenI OF Operating tOSl, SohSiuCA eAtiph
has to be given to the effect in cutting
down wage funds and the sums available
for outlay in consumptive needs for COM
modities. Indications are beginning to
appear also of the decline in efficiency of
equipment likely to result from measures
of economy enforced by the railroads
There was little effect produced directly
on the market by the reduction in The
dividend rate on Atchison from a to a
3 per cent basis and on International Pa
per preferred from a to 4 per cent
basis The steadiness of these stocks in
face of the reduction was in contrast
with the weakness of Anaconda yester-
day, when the dividend was maintained,
although rumors had preceded of pos
sible reduction. The copper stocks We're
a point of depression again today, with
American Smelling in sympathy. A
sharp drop in the price of copper iii
London and another reduction in the
quoted prices at the New York metal ex-
change had to do with this.
This group of stocks also continues to