New-York tribune., 1910-09-05
FINANCIAL MARKET
Trading in Stocks and Bonds
LiQht in Volume.

1
fined to fractions, both in shares and
mortgage issues, the market for the lat
ter showing less life than has been re-
corded at this period in recent years. The
larger number of prime investment
| securities are quoted at Levels that
/ ought to prove attractive to capital, but
! there appears TO be no idle money seek
! ing investment. while there is no indi-
cation in the course of the financial
markets of the development in the near
! future of an aggressive demand, either
| for investment or speculative account
Actual trade conditions present no rea-
| son for pessimism over industrial move
rlents in the rest of the year, but the
uncertainty over the political situation
and the outcome of the railroad rate
controversy tend to check activity in
stock market business. Furthermore.
the unfavorahle net earnings being
shown by our leading transportation
companies and the testimony Of railroad
presidents at the Interstate Commerce
Commission hearing on the question of
rate advances discouraged extensive
commitments in securities.
The president of the Atchison, Topeka
& Santa Fe Railway testified before the
government commissioners that his road
is barely earning its q per cent dividend
on its common stock as a, consequence
of the increased cost of operating the
property. and that he sees business de-
preston ahead. The Union Pacific, the
Southern Pacific. the New York Central
and the Pennsylvania companies report
a material falling off in net returns for
the month of July in the face of gains
in gross receipts, and according to the
railroad men. the railroad business will
suffer severely If higher transportation
charges are not allowed Yet in the
same breath the railroad men admit that
the proposed advances in rates will add
but an insignificant sum to total in
come. Railroad rates have been declin-
ing in the last ten years. while prices
for supplies and wages of labor have
been advancing. Rates are at a rela-
lively low level. and the railroads may
depend upon the Interstate Commerce
Commission TO grant advances if justi-
fed. but il is absurd to believe that the
railroads are in the serious position re-
ported by some managers In the fiscal
year ended June so the railroads Of this
country were operated under the same
conditions now prevailing. although the
increase in wages was more pronounced
in the last six months than in the first
half Of the fiscal period, and almost
without exception net earnings We're far
in excess Of dividend requirements
Reports now coming TO hand of last
years operations by our railroad and in
dlstrial corporations are exceptionally
good, and while in the first six months
of the current year returns may not be
so favorable there is no reason TO sup
pose that dividends will he reduced or
passed. except in cases where dividends
are not justified by past and present
records of earnings, as in the case of
Atchison common which is paying
per cent. which is per cent too much
\ careful analysis Of all the existing
factors and uncertainties in the situa-
ton supplies no argument for the
liquidation Of investment holdings. while
il warrants the purchase for cash of all
high grade issues at ruling prices that
represent a most satisfactory return on
the capital invested. Money is moving
from this centre in response to legiti-
mate trade demands. chiefly az the mo-
rnent for the financing Of the crops.
There is no bear argument in this In
deed. when money begins to move into
the channels of trade II is a good time
4,
tariff revision naturally causes some un-
easfness in business circles. but there is
nothing in the outlook in respect TO
legislation at the forthcoming session of
Congress that need alarm investors. In
cidentally, II is encoura ging to note that
the moral-atmosphere in corporation cir
cles has been materially improved as a
result Of past legislation, and that the
business community in general has made
up its mind to adjust itself to new CON
citions brought bout by the efforts Of
conscientious lawmakers TO strengthen
the situation in the interests Of the car
riers and the shippers, the producers
and the consumers.
Unfair laws will not be upheld by the
courts. Agitation against corporations
because they are. corporations by un-
educated political adventurers will come
TO naught And crooked ways based on
the assumption that might makes right
viii be eliminat ted from corporation af-
fairs by the new power vested in the
Interstate Commerce Commission and by
the movement throughout the different
states to place local railroads, tele-
graph. express companies and public
utilities corporations under the control
OF Public Service commissions. The
tendency Of federal and state legislation
at present is in favor of the owners of
American investment securities The
actual investment situation is strong.
and il is not unlikely that at no remote
time appreciation of this fact abroad
will be reflected by an active movement
of foreign capital into our gilt edged
stocks and bonds
The most interesting development of
the last week in Wall Street was the
successful elimination of the greatest
the history OF the country. August cot
ton sold at 20 cents a pound. or S1OO q
bale, for the first time since 1873 COM
pairing with the high price in Civil War
davs Of 81 90 a pound. In war times
there were few laborers to work the
plantations and little chance of ship
pipo the Staple produced while in the