New-York tribune., 1909-07-01
FINANCIAL AFFAIRS
DULL DAY IN STOCKS.
MoSt Issues Lo5rer at the Close
Railroad Earnings ImproTe-
Money Unchanged.

Price movements in yesterdays stock market
showed irregularity, with final changes at small
net losses in the larger number OF issues Trad
ing inactive Throughout the day. and was
made up chiefly Of the operations Of the pro-
fessionaI element in Erie. New York Central.
Reading. Union Pacific, St. Paul. United States
Steel. Southern Pacific, Amalgamated Copper
and Rock Island buying of the last named on
recessions being encouraged by the Rock Island
systems statement for the month of May, which
showed marked expansion in the company's earn
ings and reflected decided improvement in busi
ness conditions in the Southwest The Rock
Island-FTisco lines in better state Of ef-
ficiency to-day than they have been at any
time in the history Of the properties, owing 10
the large expenditures that have been made on
construction and Improvement account in the
last two years, while their finances are in a
stronger position than at any time in recent
wears the latter being due to the wise methods
employed in financing the companies by the
prominent banking house that is associated with
the Rock Island roads. Other companies re-
porting for May in the day made favorable
comparisons with the corresponding time year
ago notably the Union Pacific and the Sflthern
Pacific, which presented large gains in gross
and material increases in net, though in the case
of both roads net results reflected a tendency on
the part Of the Hartman mana agement to spend
larger sums on maintenance-an operation fully
justified by current gross income and the pros
poets for increasing traffic for months to come
And the thing may be said Of the Northern
Pacific, which showed a decrease IN net against
an increase in gross. The general list SOLD
down in the midday market wholly on traders
operations, recovered much Of the loss under
the lead of Reading IN the early afternoon, and
again declined in the final transactions, with
relative firmness in Southern Pacific and Erie.
the latter being bought moderately on the an
rouncenent of the addition to the board of di-
rectors of more representatives of the Morgan
Hartman interests The railway equipment
shares also presented a fair exhibition OF
strength. Commission houses were not factors
in the dealings Foreign trading was ilght IN
volume and generally the selling side
The New York banks hold such small amount
Of government deposits that the call OF the Sec
retary of the Treasury for the return or S25.OO0-
900 federal funds will affect the local institu-
tions only TO the extent that interior institutions
may draw on their balances here in the pay
ment of their proportion OF the amount asked
for by the Treasury Department. And ii is not
at all certain that the out-of-town banks Will
take advantage Of their large holdings at this
centre in making their payments, owing to their
ability to meet the call from supplies of money
actually on hand. The withdrawal Of this sum
of money. however. from general circulation may
be taken as the beginning Of the development OF
factors that viii tend to bring about higher quo
tations for loans, particularly government
revenues are improving, with no indication IN
the immediate outlook Of government disburse-
rnents in excess Of receipts except at the begin
ming Of the new fiscal year in connection with
increasing IN a gratifying manner. and against
an estimated deficit of from s115.o00.000 TO
3l250000o0 the Treasury ends the fiscal year
with the excess OF expenditures at ss3173,Oo0.
There was no strain upon the resources Of the
local banks yesterday as consequence of the
extraordinary demands incident TO the July in
terest and dividend operations. the only effect
of the arrangements for to-day's payments being
q slightly frrner tone in the call money market
toward the end Of the Stock Exchange session.
due 20 the calling of loans on moderate scale.
The serni-annual and quarterly interest and
dividends payable to-day. which approximate
s2l5 900 900. supply a most remarkable exhibit
OF the financial and industrial strength Of a
country that has just passed through period OF
acute business unsettlement. And the power or
our corporations TO make such enormous dis
bursements ought 20 increase confidence in our
investment securities and encourage the belief
that the nation is entering a period Of record
breaking industrial prosperity. These payments
amount to a sum considerably larger than the
entire amount of metal money in the country
at the time OF the resumption of specie pay