The Cairo bulletin., 1908-03-23

Inc upward movement i'm stocks
which has boon in progress for some
time past received a check in the lat
ter part of the week, owing to unfa
VorasHe railroad reports and a dispo
sltlon to take profits. A good deal OF
realizing has recently taken place es
peclally by the larger interests which
bcught stocks during and Immediately
after the panic to check the decline
very substantial profits have been
made by such buyers, and the induce
ments torealize We're irresistible in
view of the greater difficulty of carry,
ing prices to a still higher level on
this movement
Poor Railroad Shownu
1t evidently appears to be the mo.
tive of the big leaders to induce ac
tiyity by creating frequent moderate
fluctuations. The two NEST potent
factors just now for the selling of
stocks are the poor railroad returns
and the political situation. New York
Central Baltimore & Ohio. Pennsyl
yania's Western lines and other repre-.
sentative roads are all reporting very
unsatisfactory results in both gross
and net earnings. New York Central
was obliged to reduce its dividend to
) per cent. This was not unexpected
and the reduction was fayorably re-
ceived, inasmueh as the payment OF
the recent high rates at a time when it
was known net results We're very poor
invited lack of confidence in the man
agement. As a matter of fact, this
decision was favorably received and
similar action on the part Of some
other lines which it is known are not
earning their old dividends would aid
in restoration of confidence. The
stock market has already very thor
oughly discounted reductions in diyi
dends.
Labor Should Share Reaction.
January and February were disas-
trCus months for nearly all of the lead
ing railroad systems, and the reduc-
ton of Baltimore and Ohio's February
net from $1.i62, 900 in 1907 to $50
GOO in 1908 is typical of railroad eX
perience. Under such conditions ii is
inconceyable that labor should expect
to escape taking its share of the bust |
ness reaction. Yet railroad labor stub
bcrnly refuses to make any conces |
sions and insists upon maintaining the |
old rate Of wages With the heavy in |
crease in expenses brought on by !
these demands, and the unreasonable |
lious state legislatures conditions are
anything but satisfactory TO railroad
and stockholders. In some
traffic is beginning to re,
cover, and the gross results for March
should not show so large a decrease
Us those in February; nevertheless,
the railroads have some serious ex-
Dense problems to settle during the
next few months
Money Situation Better.
While the technical situation of the
market appears to favor the taking of
Profits and the exercise Of caution in
buying, the general situation appears
o be growing better rather than
verse Reports from the West as to
business are generally of a more en-
nature The depression
here has been nothing like so severe
Is in the East, and the tendency to
ecover is more marked in the indus
rial centers Ct the West than in New
York, which has all along been the
yclonic center. The monetary situa
ion shows further improvements: and F,
n consequence financial disasters re-
ulting fro mthe panic though I'M
pleasantly large, are proving less seri- |
us than at one time feared Money
ates are now reasonably low and !
God Borrowers have little difficulty IA
hiding necessary accommodation. al G
hough banks are pursuing a conserva- {
i've course and rigidly turning down {
peculatiye or promoting schemes that {
you'd have been taken up with avid t
ty a year ago. This present attitude c
+ conversation on the part of the T
anks will unquestionably in time lay /
he foundation for Il fresh start on a
afer and sounder basis than has ex v
sted for some years. a favorable q
eature was the reduction in the Bank t
f England rate to 8 per cent the low o
st rate since 1865. High rates 70. f
honey continue in Germany. where a ]
eaction of more or less severity is 4
ow being encountered as a result of v
verdcing somewhat similar to what {
) experienced in the United States. Fl
generally speaking. however. the S
honey markets of the world are now y
1 satisfactory condition as a result of s
he check to inhationary methods
.hieh began in our panic OF October c
lst y
Demand For steel improved.
Among the signs # recovery are 4 .
lightly better demand for some pro
ucts Of steel and iron. Increasing y
rdcrs have been received for both
abroad and building shapes. prices in
le meantime having been well sus-
lined There has also been a larger
usiness in copper. American consum- Z
rs having. it is understood made lib ],