Omaha daily bee., 1910-05-01
THE OMAHA Sunday BEE. NAY I. 1910
REVIEW OF STOCK MARKET
Bearish Influences Lend Unfavorsble
Aspect to Situation.
MUCH GOLD IS GOING ABROAD
Railroads Increase Wages Of Em-
pIoycs, hut This WIN Not
Hinder Future DeveI-
Ooments,


gramJ J-Active, but weak, eptoniized the
general tone Of the stock market during
the greater part of the present week.
Iuencing every incident of business to
lend an unfavorable aspect to the general
speculative situation. TO some extent
tLey have succeeded In lntensitying the
disposition or the financial community TO
hold aloof tor time. Call money this
week went TO per cent, the highest since
rectly responsible for the hardening of
the market. The surplus in banks nave
been depleted through heavy exports of
gold and II was necessary to call loans
this week to make up the reserve. Hith-
erto the outgo of gold has been counter
balanced by the currency receipts, but this
week the movement was modified. The
New York banks lost approximately
,0OO in cash reserves up 10 today. In
the currency movement there Is shown for
the week a net gain of s. $500 offset in
measure by loss Of $2,75S.OU to the
The unprecedented gold flow of sl75OOOOO
abroad s.nce last weeks bank statement
was compiled as the chief item. A tenn
porary check has fallen upon exports by
the action Of the Bank Of England in low
ering the price Of eagles I'm London. The
money situation is just now big fac
tor in the market.
While calls upon banks incident to May
involving disbursements have been held Dy
some as a factor in the hardening of the
market we must look outside of New York
for another cause which may have helped
AluluGu tliN iiAoA htNs
Banks LOaninE Heavily,
For some time II has been limited that
the interior banks were becoming more and
more loaned up and this situation has now
been realized by wall street.
The heavy land speculation that has been
gaming headWay through the middle west
for the last several months has now
reached proportions that recall the serious
occurrences of previous similar occasions.
The tNang up OF resources of the interior
banks in real estate loans means Of course
that Wall street cannot look to the interior
as a great reserve for funds whenever there
Is stiffening OF the rates in the eastern
money market as has been the case ever
since the panic. Appreciation of this taCt
a this stage among the banks and large
borrow ers is withouC doubt the underlying
reason in chief for the new development In
the money market.
,The action of the United States Steel cor
poration directors this week in placing the
common stock upon per cent basis has
had q most salutary effect. And now care
ful analysis OF the past ana present income
of the steel corporation leads to the beliet
that the company will have no difficulty
in main tanning the basis of its stock. had
the company paid per cent on the com
mon stock eacn year since It's organization
there would have remained balance or
$206 100, coo available for new construction.
steel common is now selling at 2A. 1t
has been looked upon as speculative stock
and the grand rises and fails have scared
away investors. But the action OF the
directors raising the dividend makes 1T de-
srable, no matter what it's board quota
tiUnS are Its holders VIII lose the Cnance
or professionalism"
Railroads Raising Wages.
The feature of the railroad situation just
now is the wage-raising movement. Fif-
teen of the great railroads Will Increase
wages $45, ,000, 900. These fifteen roads, which
include all the affiliated New York Central
lines and all the lines Of the Pennsylvania
system, show annual gross earnings of ap-
proXimately Sl,1OO000,OO0. Their aggregate
surplus is annually about S6S,0OOOOO, so it
noY ha fnpr qa6 M paC Urin N
! development. At the same time 1t is likely
| that maturing financial plans will result In
| the issue of 5000, 900 by various railroads
/ shortly Within the last few days there
! have been indications that several Of the
roads are ready to issue new bonds as soon
as market conditions become better.
| Directors of the Chicago, Milwaukee &
| st. Paul are expected to authorize an Issue
Of bonds for extension and Improvement.
! The amount will probably be in the neigh
borhood of $50, 600. The proceeds of this
| issue will be used in furtherlng plan for
! the Improvement Of the st. Paul and its
/ Puget Sound extension. The St. Paul
! proper intends to spend $2OOO,OOO for double
/ tracking. There is no doubt of the ability
of the st. Paul to carry the burden. If II
! had not been for the severe winter the an
nouncement of a $500 900 bond issue by the
! st. Paul would have attracted no attention.
| The stockholders of the Baltimore & Ohio
have approved a proposition to issue S37,
100000 worth of new convertlbles and SS7,-
/ 900 capital stock
= Railroad Earnings,
! In nine months Baltimore & Ohio has
! earned per cent on its outstanding stock
The Southern Railway is well ahead of last
years earnings far. The surplus for nine
months is "a, 100000. Damage to the cotton
crop kept down revenues. Hard winter and
! liberal expenses have kept down the figures
! OF the Atchison, Topeka g. Santa Fe. Nine
months figures are not yet available.
There was a boom in international buying
| this week and several copper and metal
| stocks were purchased for foreign buyers
The weather this week did considerable
| damage to crops and fruit.
! Advices from Washington today stated
that final action upon the administration
railroad bill might not be taken until June
and that congress would hardly adjourn be-
/ fore July l.
Business conditions in the south continue
| to increase In prosperity, although the cot
ton crop was badly hurt by cold weather.
! Tho bond market continues firm,
| Bends were easy Total sales, par value
lSl.37l coo. United States IS. registered, de-
cined Il per cent on call during the week
/ Number OF sales and principal quotations
on shIcks were follows:
Iov