The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-12-04
RAILROADS NET
EARNINGS LOW
Reports Of Common Carriers
Cause of Decline Of Wall
Street Stocks.
LARGER TONNAGE, BUT THE
PROFITS ARE SHRINKING
Nevertheless, Dividends Are
Regular and General Outlook
for Trade Is Bright.
BY Leased Wire to The Tribune.

NEW YORK, Dec. 3.-Tho general de.
cline in prices on the stock market caused
q dullness In business for the week Since
last Saturday An average decline OF
nearly hve points in industrial stocks
and ~ In railroad shares has occurred
rms Is the most considerable reaction
In several months.
piled; the market fell to 112 on June a.
In three weeks 1t had advanced to an
average OF 12sh: Today It was about
low average level of the year.
The decline In stocks is attributed en-
tirely 70 industrial conditions II is an
are poor. and have been nearly all Of
this fiscal year The change Is Just be-
ginning to come in gross results.
Probably the percentage OF gross de-
1911. Will be greater than the percentages
OF net loss. for the majority OF roads
are in position. even with their wage
increase, 10 minimize their maintenance
expenses and the expenses OF extraordi-
nary character that went into the opera
ton account in t9O9-I0.
Garry Larger Tonnage.
Taking the records for four months
OF systems Ike the Pennsylvania. New
York Central. Union Pacific. Southern
cihc. Erie and Southern Railway. as rep
resentative OF the transportation inter
ests OF the country, 1t viii be found by
an analysis OF their earnings since JuIy
that fairly normal progression occurred
In gross. which means that n high water
mark in railroad revenues was sustained
and was well above 1909 in numerous
cases. but that the per cent Of net gross.
suffering its first slight change in Aug
ust' became seriously unbalanced by Oc-
tober.
are handling larger volume of=traffic
IN 1910 than they were in 1906 and 1907.
the actual profit from IT, SO much tho
reports indicate, is smaller.
While In the early part OF the wear
the. foreign trade debit was the most
serious matter confronting the public,
this has greatly improved and is lead
Ing favorably toward general business
Jobbers throughout the country have
had a heavy business season, and tho
outlook Is that the retail merchants will
have an unusually good Christmas week.
Looks Like Good Times.
This. together with the good prices re-
tends 10 make business at the close OF
the year overbalance trade in the early
part,
II is therefore. not TO be supposed
Jeopardized by six or eighteen months
OF poor earnings when the general OUT
look Of the business future Is so bright.
Wall street. watching the ticker talks
of reduced dividends on Northern Pa
ctfc Great Northern Atchison, New
York Central. Illinois Central Baltimore
& Ohio and various other shares, of
which conditions are unsatisfactory
With one exception In this list, there
would be no excuse for dividend reduc-
ton during a reasonable period of re-
duced earnings. II has been carefully
estimated. for instance. that the re-
serves OF the Northern Pacific would
permit a $4,000, 900 gross decrease in
earnings before a reduction In the seven
per cent dividend would be necessary
In 1910 strong railroads all over the
country drew out from storehouses not
previously recosni|ed vast number. OF
to the strengthening OF their surplus