New-York tribune., 1911-10-16
FINANCIAL MARKET
Tendency of Stocks Appears To
Be in the Direction OF
Improvement.

affair. the general tendency OF prices aP-
/ pears 20 be in the direction OF graduai
/ Improvement. Securities thrown over
/ board In the Septembers demorallzed de-
/ cline have been better absorbed than the
/ ordinary trader is willing 10 admit there
/ has .been fair sized accumulation 10y
/ actual Investors. and rev pools nave
| been formed for action I'm various issues.
What the market now needs is 2 stln'u-
/ lating development or builish impulse
/ that would affect the entire list. Tor teen
ricaI conditions are sound. while there IS
an abundance Of money available Tor
speculative purposes General improve
mert I'm the financial markets Is orIl-
/ nariIv preceded by expanding operations
I'm bonds and It is therefore encouraging
/ TO bc able to record the fact that bet
ter demand for bonds is reported espc-
ciaUy for the highest grade issues.
/ Prices for government, state anu city
bonds show an advancing tendency. n
marked gain i'm tho inquiry for state and
municipal securities being noted from
insurance companies and savings banks
which have surplus funds available for
Investment.
Individual investors also appear more
disposed 20 come into the bond market.
and the current betterment in prices un-
doubtedlv foreshadows an increase in
activity in railway mortgages and -he
offering Of new securities by railroads
that need funds for additions. equipment
and general Improvement purposes. SEN
timent in financial and business circles is
more confident over the future of our in
dusties and less uneasiness is felt over
the outcome of the reorganization Of cor
poratous under the Supreme Courts in
depreciation of thy sherman antitrust
law iu it's relation To its effect upon the
general business situation. That inn
portaut interests are not worrying over
the result Of the readjustment Of the af-
fairs Of the American Tobacco Company
under the decision of the court is found
i'm the extensive accumulation OF the
securities of the concern. total transac-
tions in it's bonds last week amounting
in par value 10 S6.695OO0 the Is ad-
vGnciuc net 3L points and the Us T.
buying being based upon the expectation
that the position of holders would be
stronger after reorganization than before
suit was brought 10 dissolve the com
IIauv.
Many railroad companies have pub
( lshcd their reports for the fiscal year
4
larger number Of instances the exhibits
arc most satisfactory and fail 90 reflect
. the heav~ falling off I'M surplus earnings
4 predicted 10y various railroad mon at the
. time of the hearing for higher rates be
I fore the Interstate Commerce Commits
sion. THE Erie which has been steadily
. strengthening it's position. made q most
+ fatterfng showing, likewise the South
( ern Railway. the Louisville e Nashville.
. the Missouri. Kansas d Texas. the st
Louis Southwestern and the Atchison
/ the roads IN the South and West as a
rule making a relatively better showing
than those in the Northwest. as. for in
1 stance the 81. Paul. the Northern Pa
/ cifc and the Great Northern. Further
more. since the close Of the fiscal wear
| the larger number Of companies have
shown gradual Improvement in gross
earnings and a tendency 20 Offset in
. creased wages and generally high oper-
atng costs hv economies that have not
/ weakened the physical efficiency Of the
uropertiee The strengthened credit Of
. the Eric. as 20 consequence Of the roads
+ generally improved position through lib
eral expenditures upon the property.
which have enabled it 10 secure and han
die larger volume of traffic, is re-
fec-ed in tho fact that the company has
placed frs = per cent notes AT %. thereby
obtaining accommodation az g per cent.
compared with about 10 per cent which
.i- was compelled 10 pay for money three
years ago. Iu the last fiscal wear the
Erie earned : per cent on both classes
. Of preferred stock. and had substan-
t'aI surplus for the common. II appar-
entity viii not be matter Of long time
before the first preferred VIII he restored
10 the dividend column.
Iron and stee. trade conditions are
better than recently reported. and while
the margin of profit on finished steel
products at current prices is extremely
small the United States Steel Corpora
ton VIII from all indications end the
wear with substantial balance above
common stock dividend requirements.
The outlook for new business in the