New-York tribune., 1911-12-25
FINANCIAL MARKET
Sentiment in Money and BuSi'
ness Circles Is Improving.

a rule were SAlOl6 III NAS NV N'''
trading, but in the case Of st. Paul,
Reading. the Hartman shares, United
States Steel and the Wabash securities
declines were shown as compared with
the final figures Of the preceding week,
the chief weakness being supplied by
Denver & Rio Grande stocks. which
moved TO lower levels under the influ-
ence Of bear manipulation. The TACT
that receivers have been appointed for
the Wabash suggests to some people
that the Denver & Rio Grande likewise
will go into bankruptcy, but interests
identified with the latter property are
authority for the statement that the
company has the funds on hand tC meet
it's interest charges and that receiver
ship proceedings are wholly out of the
question. The Denver & Rio Grande Is
rot paying anything to its stockholders,
but the idea held in some quarters that
the road will not eventually prove a
profitable proposition for investors is not
warranted by the present financial and
physical condition Of the company or by
the industrial outlook in the territory
In which it operates its lines. The Gould
stocks are not popular in Wall Street,
but the willingness of big financial in
terests 10 enter the Gould properties
ought 10 encourage more optimistic
feeling over the future Of all the roads
which the late Jay Gould left to his sons
and daughters
Missouri Pacific has a new president
who is upbuilding the property along the
lines Of physical needs. Large amounts
Of money are being spent on upkeep and
maintenance, a reflection Of which is
found in the report of the company for
the first four months of the current
fiscal year, showing an Increase of up
ward of 50 per cent in maintenance ex-
pendltures as compared with the same
time in the preceding year. Payments
on this account for the four months rep
resent about ~ per cent Of tho gross
earnings for the period, and while these
expenditures have made a heavy inroad
on net receipts they promise future con-
ditions that will enable the company to
restore it's stock TO the dividend column.
OF course. Missouri Pacific and the
other Gould properties cannot be reha-
bilitated from earnings alone, and when
market conditions become more favor
able the Gould roads doubtless will do Il
large amount Of new financing. Thomp-
son, Towle & Co. who are well informed
on Missouri Pacific affairs, said last
week that with improvement in the in
Vcstment situation large issue of Mis-
souri, Pacific bonds might be looked for
The appointment Of receivers for the
Wabash assures a reorganization Of the
company that will place it in a position
TO become a permanent investment insu-
tuition. Wabash stocks have been weak
in recent days, but the bonds have
shown remarkable strength. The reor-
ganization Of any property costs money,
and the shareholders of the Wabash
doubtless will be compelled to go into
their pockets for the future benefit Of
the road and for their own investment
interests.
Lehigh Valley and the Great Northern
Ore certificates were prominent strong
features in the week just closed. I'M
provement in the copper trade helped
Amalgamated Copper, while the larger
business reported in the steel industry
in United States Steel common and pre-
ferred as an influence on their prices.
1t is generally believed that Lehigh Val
ley is on its way toward a much higher
price. and it is thought that i'm the
course Of the next three months the
! stockholders will he invited 10 share in
melon cutting based on a segrega
| tion of the cCmpanys coal business from
| its railroad operations. 1t is possible
that a segregation plan will be an
nCunced in the near future, although in
the best informed circles it is thought
the directors will not take action on
this important matter until April. Cur
rent strength in the Great Northern ore
certificates is based 10 a large degree on
a better knowledge Ct the value of the
company's assets and on the well found
cd theory that the termination Of the
United States Steel Corporations lease
with the company in 1914 viii cause no
loss to people who have funds invested
in the ore certificates. The Wall Street
journal announces that dividends paid
by the Great Northern ore Company in
recent years represent receipts from
leases other than those of the Great
Western Mining Company, the subsid-
iary of the United States Steel Corpora
tion, and that the money received from
the Steel Corporation apparently is in
vested in high grade securities.
Money rates are relatively easy, but
somewhat higher quotations are expect
cd before the end Of the year Berlin
was an active bidder in this market last
week AT figures well above the prevail
ing price Of local time funds while Ger
man bankers also were active borrowers
in London and Paris. The mercantile
and stock market demand for accommo-
dation at this centre is not heavy. but
AZ the same time Improvement is re-
ported in the inquiry from merchants
and other business mon, who are now
exhibiting a disposition to make com
mitments for the future. The volume OF
day-to-day business is heavy, an indi-
cation of which is found in expanding
bank clearings ard in growing railroad
earnings. Perhaps the best features II
the general situation are the countrys
favorable position in international trade.
the increasing demand i'm the metal
markets and the cheerfulness noted in
money and business circles