New-York tribune., 1909-01-01
FINANCIALREVIEW OFTHEYEAR

! S3Aoooo0o in payment for the principal and pre-
MUM on $50.0G00r0 Panama Canal bonds caused
the surplus TO tall TO sloO097o0. December 70.
ne monetary situation in Europe throughout the
year reseubIed that In the United states The
Bank Of EngIand's rate Of discount which was ad-
Vanced 10 Per cent in the panic was gradually
reduced 10 2i2 per cent. which rate il has re-
mained for several months. The Bank Of Ger
many reduced its rate from 71z per cent to per
cent, and the Bank Of France reduced its rate
from per cent 10 per cent Tho great puzzle
| in European finance was the steady accumulation
of gold by the Rank Of France, which amounted
IN more than S5501o"0 for the year of which over
! S5oooo"o was taken from the United States and
still tie bank appears disposed further increase
its gold holdings.
In the last year dividends paid by the railroads
were S1N"5Si less than in 1897. though the total
disbursements from ell corporations and municipal
tiles IN the United States exceeded those Of the
preceding year by S4,6) 00o due to the heavy IN
crease i'm the aggregate bond obligations. IN the
| last year and half the dividends changed, de-
ferred and passed amount to total Of s42.5roOoo
! the heaviest reductions being recorded between
| July, 1907. and January. IsaS The last twelve
months dividend payments We're l72.420 against
S75S.412 "a I'm 1901 while interest payments in 1903
were $72 ao72 against s37 "a in the preceding
! year. Total disbursements dividend and inter
est account IN the last year I4 l3 493.
pared with Sl.l9057255 1an7. The total of bonds
| outstanding upon which intereyt was peid in the
year just closed 5I5 S22G 200 Dividend reduc-
| ttons hcEau in 1901 with cut by the Southern
hallway In its semt-annual rate on the preferred
| from Pa to ~ per cent. which followed by
Atchson from an annual basis Of per cent 70
per cent atlantic Coast Line from 70 ~ per cent
! q which only 212 per cent was IN cash: Cleveland
/ Cincinnati. Chicago < s. Icuis common from 4 70
! per cent. Erie hrat preferred passed, Lake Erie
| 4 Western preferred from To- D per cent, Louis
| Vile & Nashville from -. per cent Missouri
Pacific from 10 81 per cent N stock and subse-
| qEent!y passed. Nashville, Chattanooga & St
| Louis common from TO So Ter cent, Norfolk &
| Western from per cent TO PEI cent, New York
Central from TO Per cent and Pennsylvania
! from to S per cent Many Industrial companies
| also reduced dividends. and sOmo concerns were
! compelled 10 pass tEe-r usual rates, but in the
total disbursements 10 American investors the
losses offset by the increase in interest pay
ments brought about 10y the new mortgage issues
and municipal e-l,riti.s.
In the year fourteen railroads went into
cetvers' hands, including the Cuba & Eastern, tho
total amount cf securities involved being approx
mately t5s5""@o ana ne total mileage repre-
sented -5" TIE most important railroad failure vas
that OF the Se4aoard Ar Line receivers for which
appointed i'm January. the Liabilities exclusive
! of floating Indebtedness. amounting 20 Sfo0Hoe-o
! lille 800 miles of road were operated. Next in
| Importance srom tie point Of View - capital
; the Chicago Great Western. which also went
| der In January, with capital liabilities Of more
! ttan Slo7ooau.1 Five Of The Eo-caled Gould prop
/ critics. Including the West Side Relt Railroad,
we're placed in the control o. receivers the Inter
! group g. admit rz inability 70 meet It's obIiSa-
! tons The Watasa was saved ny Hartman
| financing and tho entrance of the Hartman IN
! terests ta'o the Affairs ~ The Gould companies
! was one os the most Imoortarr developments Of
! tie year among the railroads Mr.. Hartman also
/ saved the I-ie. Tie leading railroads went
through ths year without trouble though they
/ we're forced - exercise TIE greatest economy
Among the 'ulI0rtaut events IN the year AFFECT
. ing the railroad situation the participation
x y NJ
/ !! 1r5or .r tie PENNSYLVANIA loan brought out hy
! Kuhn Loeb 4 co.. o" t.is city, the Willingness
/ - rcrelsu bankers % engage In transactions IN
/ vo.v,re American railroads helping the position
NJ tho local securities market and encouraging tho
! exre-+atioa OF active foreign buying OF our IN
zrs-raents tu the current year The Presidential
! carrruisu had little effect IN the financial mar
I ke.s rs II vas commonly believed that the Taft
/ rtrt.. would 10 successful. and IN the few weeks
/ r~io- 2. ;n- election there noteworthy buy
. l-s movement on tho stock Exchange. based on
. r.a .orHG-rt belief that Mr.. Bryan would - do-
. e.at,G Tt@ more confident feeling that developed
/ ,r. IN, last six months of the year was reflected
! r. ezra...~s bank clear'rEs and IN larger rail-
/ -oaG earnings tie only really urfav0-1-le feature
/ of ,t. situation IN tie lasr haI' of -" being tho
! falling ~ tu r~re,S1 trade. notably :" imports
! vh.,r 20 o. great extent we're checked tE taTln
/ aGt,atlon. As "a general influence upon tae ous!-
nos. oe .ra country the proposed readiustrrent OF
tr,-Dcrt duties has been untWpurtauf. II IS gen
! orally rerugutzcd ir business circles that many
| @. our Industries have oHtEr0|n the s|addlHS
/ clothes cf the infant industry. and that tarlf
reductions may nov ae made without injirlHE INC
| Couurry's business
one ~ the most favorable features Of The vNar
from tho Industrial point Of vi"W was ~" ability
shonn by Industrial corporations 10 bridge period
os extreme depression. Win only few exceptions
. tie industrial companies operated en- a basis "
/ about -- per cent 81 normal and while many con
.orus were compelled to pass or ~eiu'" dividends.
few were forced 20 ask assistance" from tie banks
! The Standard Oh Cnuuar, and tie International
| Harvester COMPANY we're aro0r the few corpora
/ ti0ns that oTerare7 close 90 normal IN rHr last
| -etr There vas an eNrept 7n3ly small amount of
financing Iy Industrial "0uulne- I'm the '7St twelve
months The Virginia 'arul.na chemical Company
| issued sIgn-","o bonds ont "t an authorized issue
| n- 81 upur and tie American Telephone and Tee
graph Company issued &7'""1-" but with those
two exceptions there PM" HeV Industrial g"
.lrtrc.' issues of imrorJln.e Tl" large industEIa
companies that were forced into the hands Of re
..yers I'm tie latter part o. te5 either are in the
course OF REORGANIZATION orr else the receivers nave
been discharged. as for instance. IN" Westinghouse
Eicctit. and Manufacturing company. m" receiy
ers for which retired few weeks aS" The
Southern Steel Company Is I'm the course OF reor
! lau.,atInu. and the same thing can be said or me
Sheffield coal and Iron Company "nd the Inited
Rpx Board ond Paper '"mranN Ih' great ma
turItg Of industrial companies Will start the ne"
wear under f4vpraue conditions. all being well sup
piled with substantial working capital and with
no prospects Of being compelled =" seek outside
assistance The Infnd states Si''i ''' I'ia''"i
earned net in The year upward IF }9'.0oo"'. most
favorable showing view Of the fact that the
company's plants We're operated upon an average
basis Of about 80 per cent Of normal
The years most remarkable stock market vas
ON Saturday August ~. which WAS manipulated
by A. o. Brown & CO. who subsequently failed
There had been transactions Of ii corresponding
volume before and a like abuse of matched orders.
but only toward the elimination Of a crazy ger
crai speculation. This different. There mao
been no working up to a climax An outourst OF
incredible activity came at the end Of week