New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-15
ALLAWAY's REVIEW

rules.
Illustrative of prevailing apathy isfs.
complete indifference with which us-,
or events of either buIlish or besr,.
character are received For exarr,,
the advance OF the dividend on Brooks,
Rapid Transit to per cunt induced :.
buying in the general market nor a.,
buying of the stock itself. Per coata
the failure of Pennsylvania 10 annouse.
an expected dividend raise induced =,
selling. In either case the market M.
stood still with stubborn stolidity. -.
one encoura ging feature in the situattrs
marketwise. Is that when Temporary 4.
preston appears there ~ no public lion.
dation. Should anything adverse haop-
which would start actual public selltrr
the prospect would not be cheerful.
General governing conditions rsyss
nothing new. The crop situation fo-s.
shadows normal yield-the indussrs
and business situations sfov nsitss
progress nor. retrogressioR- There al
everywhere the mood OF waiting to y,
what win happen
There is nothing startling in the ten.
picaI position OF the security MARIE.
Commission houses are carrying vs-,
light lines Of rnargined stocks-prohaby|
as light as at any time since the IxI
panic. This. Of course. IS a helpful feat.
ure. On the other hand, the narru-
range of fluctuations has brought about
considerable eurtailn1ent Of the protes.
siouaI short interest-Wall Street oDsr.
ators not feeling encouraged 10 nan|
attacks upon market smothered In IN.
ertia. But professional Wall Street loos,|
with disfavor upon the continuous cata.
ract. outpour OF new bonds and notes
which promise to absorb much Of tss
floating CAPITAL available for Investment
leaving the older standard issues friend.
less. The argument runs that while 10
immediate effect Is percsptible this stag.
gerine volume OF newly created oblig2.
tons must eventually depress the gen.
eraI average of quotations At any rate
these new issues whether aoated a.
home or abroad cannot be hailed as huH.
;sh market factors. SO long as times
keen good they can be absorbed withoE
straining the financial situation, rss
upon any slackenins OF business ACTIVITY
thew would inevitably become burden.
some. 1t is not possible to excite hurraa
enthusiasm over the increase OF capitsE
obligations OF American railroads. Tia
railroads are facing a period or higher
wages. higher cost of equipment and op-
Grafton, and in many cases larger Givl-
deDd disbursement. without orner re-
course than to make good by increasing
traffic rates-something which viii me-:
with public opposition, exertlnS innuenfs
upon the political elections 10 De ned
next autumn. The situation IS DUBIOUS
it exerts no immediate erect upon Sc
c,1rity market transactions, but II Is
causing a good deal OF serious thoushi
by the investors OF the country Win
such conditions lying right under na
surface IL is Idle to anticipate any siren
mons hull market individual stocks mas
he rushed I'D either for naeritoriOuS oi
n1eretricfous reason, but the genera
market cannot expand into buoyancJ
until there is more valid cause tnan non
exists.
Money market conditions are asrse
able. Most bankers have been apcre
hending stringency, even trouoleson4
tightness: but the very unanimity OF TN
expectation seems TO have been protec
rive. and there can be no DENYING teai
i'm so far as the money market IS cen
cerned, there is substantial sentiments
Improvement -.--.-~
Among the anomalies OF the market J
the action Of the railway equipule1
stocks Upon all sides. apropos OF cur
rent borrowing IN Europe, there has osei
agreement that these new resources az
tremendously to advantage America
railroads by providing means wherexin
to acquire equipment not hitherto readhl
financed. Yet the record upon the Stces
Exchange is that relatively little gain II
market price is scored by any OF IN
eauipment company shares-there shows
indeed. virtually no market interest y
any of them. To help some OF tnsn
pools were formed a month or two as'
but the net result for the pools dae'
not seem to have gone beyond an acei.
mutation Of stock Pool brokers hsva
ceased to bid.
This condition doubtless SURPRISES
most observers. Take, fer example, Us
shares of the American Locemotns
Company. 1t has been widely represent
ed that a large portion of the new Tor
eign funds would be paid out for loco
motives. But the trade record is tha'
upon balance locomotive orders. instesl
of showing net increase. are Cancelled
The American Locomotive COMPANY
not in any sense an ordinarily ecnduet'
ed enterprise. Its managers are n0'
merely men Of high character-they af'
experts who lead in their departrrell.
But in their case. and the situation
similar in other conspicuous quarters
manufacturing profit depends exception.
ally upon corporations from Wheul tes'
must acquire either raw or finished ma
teriaI-and in this particular instaness
the dominating source is the UHi1s'
States Steel Corporation. whose a.
vanced economic position PROVIDES az,
Solute market control. The great SIs "a
Company. pilinS up profits OF S4o,uVe.0qs.
per quarter. is not leaving much leeSs.
for profit to subsidiary or suoordinss I
customers. And. thus, the secondary Cyl
porations whether locomotive ma lltlass,
urers, makers of steel cars or other We ~,
independently enSdgsul must ue - a
with minimums. This situation oecoHSS,
more pronounced year by year Anls,..
can Locomotive net earnings, for 81,
ample, We're able TO provide loT - -
about S2,s0o,0o0 as a balance Tor CONNIE
stock, against over 100000 as an
erage for previous years-W HE - ~.
there been the usual disbursement - ).
maintenance there would have been =
actual deficit-such expenditures CT p
100000 per year in 1905 and 1907 a. ..s,
TO $500, 900 for 1s0S-and this shffrNess.