New-York tribune., 1910-04-11
FINANCIAL MARKETS
Stocks Inactive, with Prices
Tending Toward Lower Levels.

transactions OF the professional element.
Commission houses have few speculative
orders for public account. while their
actuai investment business is light in
volume capital apparently being un-
willing TO move into securities at present
/ prices pending the elimination OF a num-
Der OF factors that tend TO cause more or
/ less uncertainty over the future OF
money. business and politics. There IS.
however. little liquidation Of permanent
Investments. except to certain extent
in the bond department Bear traders
have been fairly successful in bringing
about a lower level OF quotations in the
general market. and sentiment in the
Street favCrs the theory that before a
sustained bull movement can be engi-
neered stocks win be established upon a
cheaper range OF prices. notwithstand-
ing the fact that the prevailing figures
are only trile above the low points OF
the year made early in February. The
conservative element in the Street views
with some uneasiness the possibility Of
widespread tariff agitation before the
next Congressional election: Il finds in
the high cost OF living and the increasing
demands from labor for higher wages
reason for settlement in the securities
markets in he course OF the next few
months: il Is uneasy over the ease with
which the Bank Of England draws gold
from this country. and it pretends TO see
in the speculative not now under way in
the rubber shares on the London Stock
Exchange and in the unpromising finan-
cial situation at the British capital
source OF trouble for our own market.
The failure Of the Supreme Court to
hand down q decision last Monday in
the American Tobacco case intensified
the harvest Of uncertainties. If a de-
cision should come to-day against the
company. stocks doubtless would sell of,
but no matter which way the Judgment
reads. bankers and business men will
welcome il. as in the event Of a victory
for the government corporations Will be
able 10 so ahead with some intelligence
IN the matter Of readjusting their affairs
to comply with the law, while If the
court holds that the American Tobacco
Company IS not an outlaw, industrial
combinations will breathe a sigh Of re-
lief and settle down to the making Of
money with no fear over the future. II
the American Tobacco Company is
transgressing the law. Judgment against
IL can in no way be twisted into a bear
argument on the future Of our CORPORA
tiOns The sooner corporations and indi-
yiduals conform to the law the better for
the general business interests of the
country. Current conditions inviting
caution in speculative operations do not
warrant the sale of investment issues by
actual holders.
The high cost Of living. which is
bringing about an enormous increase in
the payrolls Of railway and industrial
corporations. Of course may tend 70 re-
duce the dividends of some concerns.
but even with lighter disbursements TO
stockholders the latter stin will receive
fair return on their investments.
There are some companies that are now
paying dividends at rate not war
Ianted 10y their income. notably in the
case Of the Delaware & Hudson Com
pany, which for the last year shows only
a small margin Of surplus after it's .
per cent on its stock. while there are
other companies that could pay more
than their current rates. even with the
addition Of a large sum 10 expenditures
on wage and salary account The
Pennsylvania Railroad has announced
an increase Of q per cent I'm wages. in
volving an addition OF SI0e0oO0 To the
payrolls Of the various lines OF the Penn
sylvania system, but in spite OF this
extra payment no one is worrying over
the ability of the company 10 continue
its present dividend rate. while il is not
thought improbable that before the close
Of the present year a higher rate will be
declared.
in December. 1892 the Pennsylvania
awarded an increase of 10 per cent TO
an employees receiving less than $500 a
month. In December. 1906. another
voluntary horizontal increase Of 10 per
cent was made yet in the business de
. preston following the panic Of 1907 tn.
company made no reduction in wages.
The Pennsylvania and many other roads
not only have increased :heir cost OF
labor in tn last eight years. but they
also have been compelled TO bear the
burden of the increased cost Of mate
rials. some supplies to-day costing from
G-1 10 20 per cent more than they did in
1902 To a large extent the railroads
cost of living" has been met by in
creasing the efficiency of operation, but
ii current conditions continue il Is con-
ceivable that the transportation com
paUics viii increase their rates TO the
shippers movement that would not be
at all unreasonable. especially as rail
road rates are among the few costs that
have not materially advanced in recent
years. Indeed. general freight rates are
lower to-day than they We're ten years
ago The general transportation bust
ness rests on solid foundation, and
railroad managers and stockholders
should take much encoura cement from
two decisions rendered last Monday by
the Supreme Court. in which the court
made il quite plain that the railroads.
like other owners Of property. have
rights that are protected by the Consti-
tuition of the United States.
At the close of the last week the local
money market began To reflect in higher
rates, both for call and time loans. the
heavy engagements of gold for export to
London owing To our antiquatcd cur
roncy system We are unable 10 protect