New-York tribune., 1910-09-24
FINANCIAL MARKET
Banks Suffer Heavy Loss on
Shipments to the Interior.

Activity IN YESTERDAY SloCA Hl1A >eN
was confined 70 a few issues, and even
in these the dealings did not reach i'm
portant totals Opening prices as rule
,--,-o under the closing of the preceding
dav. moderate selling pressure from
n-oeessional traders being based on INe
statement by one Of the Interstate Colii-
,.-oe commissioners that the railroads
- the future would have TO find some
o+bar way of meeting increased oper-
a-t,,r- costs than an indefinite advance IN
rates. While some spectators thought
that +r,is opinion might foreshadow ao-
verse action on the present application
Of TRANSFORMATION companies for higher
4raighr charges. the idea that the pro-
,ora5 new schedules would be allowed
and that general advances would not De
pe-nftted in the future obtained conslu-
erable popularity, a reflection OF WHICH
was seen in stronger prices for the
LARGER number Of securities later IN the
dsv The market as a whole, however
was too narrow and dull to develop SUD
stautiaI changes in quotations. and win
only few exceptions closing figures
showed small fractional differences from
Thursdays final levels Reading and
+be Interborough-M Metropolitan shares
were the only features, although their
movements were not at all startling.
Reading is one OF the best trading
stocks in the market, and IT requires but
little inducement 10 start movement
in Il. the favorable report Of the com
many for the year and the big earnings
on its Jersey Central stock supplying
the incentive yesterday for the Increased
sDeculation in the shares Although
Readings earning power and assets
known and concealed, are enormous
while its income from the stocks in its
treasury is heavy, there is no indication
that the directors have in mind in
creased dividends or an extra dividend
distribution, especially at this particular
time. when the railroads are pleading
poverty before the Interstate Commerce
Commission. The Central Railroad Of
New Jersey earned last year little
more than 80 per cent on its stock, and
il was among the first Of the Eastern
roads TO soak the poor" commuter-
Another favorable report received
Yesterday was that Of the Chesapeake &
Ohio. which shows striking results for
the last fiscal year and a surplus avail
able for dividends equivalent TO a little
more than 10 per cent on its capital
stock. This company has made Won
derful progress in the last ten years,
and as Il is ably managed and runs
through a rapidly developing country.
from Chicago to tidewater. it's stock.
which is now selling at %, is most
favorably considered by conservative in
Terests
According 10 the known movement Of
money in the current week the local
banks have lost more than s., ,oOo, 900 on
their general operations. the larger part
OF the reduction in holdings being due
10 shipments to the interior. which were
much heavier than reported 4 week ago.
The chief Withdrawals were made for
Eastern and Southern cities. the de-
mand from the West being an unim-
the shipments have been Offset by over
the counter operations, or by a substan-
tial contraction in loans. an unfavorabIe
Clearing House statement may be looked
for to-day. Money rates, however, do
not suggest heavy reduction in re-
serves, and from current indications
bankers apRarentiy have made up their
minds that higher quotations for loans
wiz nor be a Development of the i'm
mediate future. as they have marked
down their rates OF all time maturities.
The financing of exports Of cotton in the
event Of a final refusal on the part Of
London bankers TO accept our cotton
bills Of lading without an American
bank guarantee. however. may result in
a frmer money market later in the sea
son. but as the banks are in strong
position. while there is no heavy specu-
lative or mercantile inquiry for accom-
r,odatiou the operation need not he