New-York tribune., 1909-01-20
FINANCIAL AFFAIRS
STOCKS END HIGHER.
Middle Grade Shares Features
Railroad Earnings Improve.

Stock market trading failed 10 e&hlolI any
animation until the last hour, when the general
Iist tecau1e strong and active under the lead or
the middle grade securities, in which falrIy
heavy speculative demand developed Ihe IN
ouiry came in great part from the shoris anu
from traders who were impressed by the preVa-
lence OF tips and alleged inside information
notably in the case of Missouri Pacific, Wlscon-
sin Central Norfolk & Western. Chesapeake d
Ohio Kansas City Southern preferred and MIS-
souri, Kansas & Texas, the last named issue at
its high price showing a maximum advance OF
points Norfolk & Western gained net
points Missouri Pacific 1l9 and Wisconsin
Central 21k and 25s for the common and pre-
ferred respectively. In the early operations
prces as a rule were under the closing OF the
preceding day. with special weakness in the
copper shares but the movements then as well
as at the close represented little beyond the
transactions of the professional element. COM
mission houses having few orders for pubic
account while the more substantial Wall Street
interests were not factors in the dealings. The
big men Of the financial community apparently
are not disposed TO engage in aggressive oper-
ations at the moment. and as consequence OF
their attitude the small fry endeavoring to
move various stocks through the medium OF
tins which have no foundation in fact, and
which are quite likely 20 lead many traders who
are poorly informed regarding the methods OF
certain class of spectators into the belief that
conditions of tremendous market significance
are about TO develop. The greater number of
so-called cheap stocks have been bulled to a
level that measures everything favorable that
has happened in the recent past and any IN
crease that may take place in their actual value
for months to come. These stocks, however.
move easily and in the absence of activity in
the real market leaders they supply second rate
traders a good field for their activities. Sold
out bulls are praying for some development that
will bring stock on the market. but If active
blIying movement should start in Union Pa
cific and other high class issues they would be
quick to follow the lead.
Though the greater number OF the country's
industries are working basis far under the
normal, railroad gross earnings show improve
Inent as compared with the results reported at
this time last year, and in most cases net state
nents for December now coming to hand pre-
sent noteworthy favorable changes from the
same time in 1907. The Baltimore & Ohio's De-
cenber exhibit the figures of which were re-
ceived yesterday, reflect traffic conditions that
ought to cause considerable satisfaction to the
ockholders OF the company, gross receipts
showing a gain of $780,. .5SS and net gain of
500, ,213, making for the first six months or the
fseaI wear an increase in net of 1851 473 against
a decrease in gross IN the same time of S592c-
262 The railroads of the country in the last
twelve months have practised great economy IN
their operations, and a consequence the
heavy falling off in gross earnings as a result
Of business depression have been offset to
material extent an influence upon net re-
turns the latter in the majority of cases hav-
ing been large enough 20 provide for dividend
dends fguring as the exception rather than the
rule Owing TO the forced economies of 1908
Increased railway expenditures on a liberal
scale will be a factor of no mean Importance to
the countrys business activities in the course
OF the next two years, assuming that current
indications foreshadow the re-establishment of
business in general upon a normal basis, and
expansion in the operations of the railway
eouipment and supply companies doubtless soon
will be reported from these sources. The num-
Der of idle cars is heavy, but steady reduc-
ton is looked for. In the metal trades produc-
fIon continues in excess of consumption. and
the fact that in pig iron and copper the output
of the producers is in heavy volume suggests
AN abiding faith on the part of the interests
concerned that at remote time the demand
for finished materials viii overtake the supply
in the market.
So far in the present week the local banks
have gained on their operations with the Sub
Treasury more than S3.0OO0O0 while they also
have received large sums from the interior.
where the demand for funds is extremely light.
Both call and time money at this centre are at
a low level. and unless enormous foreign
demand for gold should develop there appears
little prospect of materially higher rates for
loans in the near future, notwithstanding with
drawaIs from the banks CT government deposits
which will amount to S2J,0l0.VJD under the re-
cent call of the Secretary Of the Treasury
While the New York banks hold only small
amount Of federal money, the larger part of the
financing of this operation viii be done here.
out of town institutions holding government de-
posits viii pay their proportion through their
balances at this point. Government expendi-
lures since the beginning Of the current month
have exceeded receipts by more than S9.opu0U0
and as there Is no immediate chance of u
change in this movement II readily may be seen
that the return of government money can have
te aNPa lrf5