New-York tribune., 1910-12-01
FINANCIAL MARKETS
Heavy Losses in Railroad Net
EARNINGS Affect Stock Prices.

Stock market prices showed pro
nounced weakness on q large volume OF
business, maximum losses among the
prominent issues running from ! to more
than points with final declines almost
as heavy Traders were bearish and
made no attempt to conceal their pessi-
rnistic sentiment, which appeared to be
based IN large part on the poor net rail
road earnings reported. on the absence
Of the substantial banking interests from
the market and the refusal Of the public
10 buy stocks. factors that encouraged
the idea in speculative circles OF the fuI-
nlment of James J. HilIs reported
prophecy regarding the course Of the
country's industries in the coming year
The Iron Age" says in its issue this
week that there is no dissent among
leaders in the iron and steel trade from
the view that a quiet time is ahead of
the industry. The same idea is quite
generally held in business circles in re
spect 70 all industries. but nothing in the
nature of depression is looked for and
nothing that might bring about wide
spread lowering of dividend returns is
PKDRCTRO- HtintuSIl StIlt@- ioAlI OcO iAAV7ii
profess 10 see reduced disbursements 70
stockholders If the companies are not
allowed 10 advance transportation rates.
and their arguments are strengthened
by bookkeeping figures that show
heavy falling off in net earnings in the
face of gains in gross receipts. as, for
instance. in the case OF the Union Pa
h., p1pifIp which
show for the month OF October losses Of
S7I7.443 and ST21, 49, respectively, and
the Pennsylvania which reports for the
same month decrease in net on the
lines east and west OF Pittsburg of more
than 81 100000
The general public is not buying stocks
outright because II is not in a financial
position To do so at current market
prices. and the prospects therefore Of
the present holders Of stocks find
ing q wide market for their hold
fngs at materially higher quotations
are not promising. Buying Of stocks on
borrowed money for outside account
likewise is a negligible factor in the pres
ent operations on the Stock Exchange
DESPITE the fact that money is easy, and
from present indications it will be a,
lean Christmas in commission houses,
which are now brayely trying to attract
a public buying movement in order 20
nav expenses The Gould shares were
weak features yesterday. especially Den
Yer & Rio Grande preferred and Mis-
souri, Pacific. the decline suggesting the
possibility of the passing Of the dividend
on Denver, which would place all the
Gould group in the non-dividend class
The Denver & Rio Grande is the guar
antor Of the bonds Of the Western Pa
cific. and il is conceivable that until
that road is on an active money making
basis Denver preferred dividends may be
held up notwithstanding rally in the
last hour final prices In most parts OF
the list were well under the closing OF
the preceding day.
The local banks have lost upward of
Sc opOoeo TO the Sub Treasury in the
current week and as interior exchange
has not moved in q manner TO indicate
AN active movement of currency TO New
York from out-Of-town points. to-mor-
rows bank statement doubtless Will
show a material falling off in cash re-
sources. Money rates have not been
adversely affected by the loss in cash TO
the government owing 10 the absence
o. demand for accommodation on stock
market commitments and TO the decline
in securities prices. the latter having
served 70 release a substantial amount
OF money tied up in speculative loans II
* uossible therefore that loans have
been reduced to an extent large enough
10 offset in part the decline III cash ds
an influence on the reserve above legal
requirements. Money Is bringing a pet
Ter price abroad than in the local mar
ISet. and it is understood that within the
last few days American bankers nave
been lenders in Europe, where the cur
rent demand for funds Is far more. ac~
tive than reported here. An advance OF
New York exchange at Montreal makes
further shipments OF gold TO Canada un-
profitable but the maintenance OF the
rate at San Francisco for Eastern FUNDS
- par encourages the expectation OF ad-
ditionaI transfers of money TO that point