New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-02
FINANCIAL MARKET
STEEL STOCKS STRONG
Farorablc Railroad Earnings
Strengthen BuN Confidence.

Although selling pressure was effective
in bringing about moderate declines in
the early dealings in yesterdays stock
market the movement failed to attract
commission house liquidation, and be
fore the end OF the second hour of bust
ness traders reversed their position and
bid UP prices throughout the list Of &C
ton by the Lake Shore and the publica
ton of several favorable railroad re-
ports, together with Indications of quiet
accumulation of the better class OF Sc
curities by substantial interests encour-
aged bull sentiment in the afternoon
and while trading for the long account
WAS not heaVy the recoverieS from the
low points We're we'll maintained, espe-
cialIy in Reading. United States Steel,
Amalgamated Copper. Union Pacific and
New York Central, the last named be
ing helped by the Lake Shore dividend,
which will go into the treasury of the
New York Central company. The Street
naturally assumed that the extra diVi-
dends declared by the subsidiary COM
panies of the New York Central would
be reflected at no remote period in an
advance III the rate n New York Cen
trail stock, and the idea suggested that
Pennsylvania stockholders also might
soon receive increased dividends a
consequence of the larger payments
made by properties controlled by the
Pennsylvania Railroad.
With the exception Of the Rock Isl
and all important railroads reporting
earnings yesterday for the month Of
January showed encouraging gains both
i'll gross and net earnings y Canadian
Pacific, Union Pacific, Southern Pacific
and Pennsylvania all exhibited traffic re-
ceipts that should silence the pessimistic
talk heard in some quarters regarding
the course Of business, while Rock ISL
and, though showing a loss in net, pre-
scented a gain in gross large enough to
suggest growing prosperity along its
lines In the late trading the effect of
50 many favorable railroad reports was
pronounced in the stock market, which
gained in strength and activity, and lit
tie attention was paid to the action of
the directors of the Chicago, Rock ISL
and & Pacific Railway in reducing the
dividend rate 4 of 1 per cent from the
last preceding payment though it left
little room for anticipating an early
declaration on the preferred stock Of the
holding compan,-. Money rates re-
manned at Mondays level and sterling
exchange again was strong Western
banks were heavy buyers of commercial
paper in this market.
Earnings of the Pennsylvania Railroad
supply a trustworthy indication of in
dustrial conditions. for the excellent
reason that the company handles most
diversified traffic and covers a territory
rich in mining, manufacturing and agri-
culture The report of the road for the
last calendar year, therefore, furnishes
d most interesting document for the
perusal Of investors and business men in
general, as it shows an enormous in
crease in gross receipts and d balance
for dividends on the stock upon when
dividends were paid in the year OF more
than II per cent, compared with $50
uer cent in 1903. The exhibit is cSpe-
ciaIly favorable in view Of the fact that
in the early part of 1903 the business
activities of the nation were not running
on A normal basis. Pennsylvania affairs
are being managed in the interest of the
cornpanv's stockholders along lines cal
t.Ilated to benefit the shippers, and the
results obtained give tangible evidence
of the fundamental strength Of the in
dustrial situation, while they also show
that d great corporation can be success
fully handled without melting public
luminosity against il. And the same
thing may be said OF our greatest indus
trial combination, the United States
Steel Corporation. The report Of the
PENNSYLVANIA Railroad for the last year
makes wonderful exhibit but it is
likely that the returns of 1910 will pre-
sent even better records, an indication
of which is found IN the company's
statement for January. showing an in
crease in gross earnings on al lines dl-
rectlv operated of S3.964. 300 and an in
crease IN net of $1.J15. 100.