The Montgomery advertiser., 1908-03-23
FINANCIAL REVIEW.

 New York. March 22--The securities market last week was arected by what had been accomplished previously in discounting an improvement in con dittons bv the considerable rise in prices which had occurred
 The attractive profits which had ac. crued on holdings 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 dispo- sition to take profits was sufficient to make it's impression on prices and the action of the stock market was un- settled and irregulad in consequence. Added to this influence were some oc- currences which raised questions of the rate and the extent to which improve ment In business had gone. Actions to- wards reduction of dividends in sew eral cases centered attention on that subject and the probabilities were can vassed with some uneasiness of how far the tendency might extend.
 The reduction of the central dividend from q six to a Eve per cent basis was the most important action in this line. There was also the passing of the di- Yidand on crucible steel preferred and on Union Typewriter stock and the re- duction of the dividend on the Rio Min ing Company, the great copper mining company in the European field. 1t has been considered inevitable for some time past that dividends on some of the railroad stocks should come down and the prices of the stocks have moved to a price level which was supposed to measure the expected reduction in the turn. The sensitiveness of prices last week to the news would indicate that some revision of estimate was in pro- gress as to the Sreauisite change in prices called for by the expected >changes.
 The question was affected by the re- ports of earnings of railroads coming to hand, the persisting rate of shrink age in both gross earnings and pro1ts disclosed and the obstacles which seem- ed to be ordered to adjustment of ex- penses to the diminished earning power of the companies. The previous weeks rise in stocks was predicted to an i'm portant extent on the hopes aroused by reports of conferences in progress at Washington that permission of the h. terstate Commerce Commission to the railroads to raise freight charges was planned. coupled with assurances that wages of labor might be secured In a proportionate share In the Increased re- turn. Confidence in the success of this project waned in the financial district and fears have grown that the adjust ment must proceed along the lines of reduction of wages. with the disturb ing disputes likely to be involved.
 The impression Is created also that railroad corporations are inclined to entertain dividend reductions as a suit able policy to pursue as an acknowl edged necessity in conformity with the enforced retrenchment of outlay for services on their 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 anti-trus law. These efforts are supposed to seek to relieve the restrIc- tion of the law upon all agreements in restraint of trade and so to per init those that are fair and reasonable and the legalization of the boycott as a weapon for labor organizations has served as an adjunct to the plan to se- cure the harmonization of it's interests in it's support.
 Reports of the varying prospects of the objects sought in this movement had some corresponding reflection in the security market. The revival ot investment demands for new capital tR sues is still awaited. The announce ment during the week of the Illinois Central financial plan, involving att tractive subscription privileges to stockholders. disposes of but one of the many measures for new financing known to be impending and considered necessary for the carrying out of pro- iects which are relied upon to furnish demand for commodities. The plan did not arouse an encouraging response in the action of the stock. however