The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1908-01-27
NEWS AND NOTES
FOR INVESTORS.

On tN ES Ills
There has been considerable discussion
in railroad circles about a wholesale reduce
ton in wages. The railroad traffic of the
country for the last few months has been
of the most unfavorable kind. The western
roads, which rely mostly on traffic for the
major portion of their earnings, have to pay
more in wages to their employees than the
eastern roads. They have been encounter
ing Il very poor year as far as the traffic
earnings is concerned, and if the present
earnings keep up at the same rate as 1t
has been done for the past few months a
reduction in the number of hours or wages
is n certainty. With the eastern roads
this is not 50 certain, because whatever
reduction that had to be made has been
done and a reduction in hours may occur,
providing traffic conditions become SO seri-
GUS that it is absolutely necessary.
There is "a feeling of hopefulness among
railroad men that with the earnings Of the
mouth of January the worst period Of de-
preston Will have been past.
Whatever depression there has been dur
ing the past few months will have no eff
feet upon the bonded Indebtedness of the
companies. The earnings for the past few
years have been so great that a curtailment
at present will he nothing, only that the
large dividends paid on some of the stock
will have to be cut. This has already been
done, and what may come will be of little
significance.
There has been a sharp cut in prices of
cotton goods by western and eastern
houses,
The New York Clearing House banks
have gained in surplus in two months $780,
900, 600. This Is a feat when financial con-
ditions were so adverse to any such action
TO be taken by banks, that it is wonderful
now these banks done 1t. During these
two months railroads have been showing
poor earnings and many other detrimental
affairs hobbed up. But the confidence of
the people In the face of all this was re-
storing. Bond offerings were taken up
eagerly and the interior banks began 10
loosen up with their immense reserve hold
ings. The ~latters' action is mainly re-
sponsible for the present reserve which
only a few months ago was a large deficit.
Foreign cables indicate good investment
buying i'm anticipation of the public de-
mand. In both Paris and London the mar
kets have been active, and the middle class
investor has also been doing a lot of small
lot buying. The American rails have been
strong and active. Berlin has been lethar-
gle. and the public and traders are stub
born in taking cognizance Of the cheer
full indications. Money is easy, as is shown
by the wholesale reduction in bank rates.
and for the first time in a long period the
amount of undigested securities
which has been laying in strong boxes is
been absorbed.
Western bank reserves are high as ever,
and the urgent demand by corporations for
loans has made rates hish. The railroads
have TO meet important obligations, and
this has been a strong factor in strength
ening the money markets in that section
in face of high reserves.
The iron and steel markets present a
continuation of increased inquiry at pres
ent, but no large tonnases are involved in
new prospective business. The revision,
however, in prices of ron, steel and other
products has led to a moderate
increase in business.
The decline in prices in securities has
led many investors to odd lot buying. The
majority of brokerage houses are shipping
stocks daily to various parts Of the coun-
try, particularly in the West.
Associates of John r. Walsh say that he
is trying to raise money enough to pay the
interest and salaries of his Southern In
diana Railway.
A report that the Gould and Hartman
interests have come to a amicable agree
ment In the view of settling certain mat
tiers affecting the Western Pacific and
Southern Pacific roads is not taken seri-
ously in Wall Street. and is said to be
absurd In quarters which are affected by 1t.
From September 1, 1907, to the last week
in January 4,7S9,7 100 bales of cotton have
been exported from the United States, or
an approximately total value of $3.50, 100000.
The feature of the odd lot buying has
been the buying Of the non-dividend pay
ing stocks. The investors seem to like the
stock which Is selling at $15 to $40 a share
better than the high-priced Issues. The
reason can readily be seen. If a bull
movement is started they will realize their
principle and much more, and they will
have only invested a small amount of
money with the idea of getting something
some day and not today, while If they had
gone in the high-priced security they
would go in with the idea of getting some
thing right away, and if affairs happened
to turn just to the contrary of their ex-
pectations they would find themselves in
a rut.
Post & Flagg say: Later on, after we
get a little more light on the political situa-
tor the country may take heart again and
show more of a tendency to return TO the
old-time volume, but between now and
May or Jnne we do not look for any sus-
tanned bull movement"
1t is expected that the State banks and
trrst companies of New York will begin
weekly reports to the State banking de-
partment in the near future.
MITCHELL DESIRES NO OFFICE.
INDIANAPOLIS, Ind, Jan. 27.-Presi-
dent Mitchell announced to the convention
Of the Unified Mine Workers OF America
fndau that Ahn did not dncinn - LII 49,