The Marion daily mirror. (Marion, Ohio) 1892-1912, 1912-01-29
THE RAILROADS
HURT MARKET
st. Paul and Union Paci-
fic Earnings Are
Decreased.
new HAVEN ROAD IN TROUBLE
Tried to Corner New Eng.
land Transportation at
Vast Cost.
Steel Securities Hurt by Re.
port of Extravagant
Profits.
Money Continues Remarkably Plenty.
Capital .s Demanding Greater Pro-
fits--Condltions Arc Quiet and
Sound in General Business.

stock exchange continues unbroken.
On the one hand security holders will
not sell because Of belief I'm better
times ahead when current political
uncertainties, domestic and foreign.
are over. on the other hand buyers
are holding aloof for the better re-
turns which pending new issues arc
expected to offer. The stand-on be-
tween buyers and sellers has been
further illustrated by the ATTITUDE of
large corporations I'm need of funds.
II is known that banking houses had
been holding back such offerings for
come time past, awaiting more favor
able conditions. this situation being
largely responsible for bhe com'para-
tive inactivity of the investment mar
ket
There is no serious lack of pur-
chasing power. 1t may be that among
the smaller class Of investors there
Is less money than usual for salting
down purposes, but there Is sufficient
buying capacity among large indlvid-
ual and corporation investors to take
care OF a reasonable amount of really
desirable offerings There has been
one other rather important obstacle
to good investment buying. and that
Is the iusistence OF purchasers upon
better returns. Capital now demands
larger profits upon new ventures, an
attitude which at first sight seems in.
consistent with the gutted condition
of the money market Money, how
ever, may be cheap for temporary
purposes, but when passing into fixed
E forms of investment requires and
) seems able to secure better returns. rs
Capital also wants larger profits,
, because those with fixed incomes are
; compelled to secure higher rates of
interest or dividends in order to meet
The increased cost OF living. Tais
week several new bond issues OF Inn
> portance have been made at rates
which prove such assertions. Where
4 1-2 per cent. used TO be an accent
able return upon high-class bonds. 8
per cent is often now demanded. De-
sirable issues have been made recently
at about . per cent. basis II Is
worthy of note that in all the new
issues thus far offered little or no
stock has been offered. This contin-
ued preponderance OF bonds In new
70 issues is Significant Whether IL As a
{ mark Of general distrusr or not, Il
e means a piling up Of fixed obligations
a which could not be regarded without
70 concern in event Of any widespread
n business depression.
n The stock market was further un-
settled by the expected reduction In
ST. Paul dividend. For years This
stock has been upon per cent
basis, but IL was known that last
years net results did not warrant a
y continuance of this rate. Union Pa
= chic has also been weak owing TO less
s favorable reports of earnings. the
G operation OF the road having been
% materially disturbed by labor diff
10 culties. Developments concerning the
G New York, New Haven a Hartford
= have also exerted an unsatisfactory
influence. This property for many
years considered one of the strongest
In the country, has been brought to
the verge of difficulty by the attempt
to establish n practical monopoly OF
transportation throughout New Eng
land, paying extravagant prices for
competing properties and finding it.
self saddled with run-doWn properties
having Indifferent earfIing capacity.
The Steel securities were also affect
ed adversely by Investigations at
Washington. which tended 10 show
that the company had been making
excessive profits. Little concern IA
shown about the tariff, the company
being practically independents OF pro-
tcction. The house may favor the new
BILL but the action OF the senate and
the president Is uncertain The re-
ports of slackening in demand for
iron and steel products also tended
20 weaken values. Altogether the
stock market wore a somewhat un-
certain appearance.
Money continues remarkably easy;
In fact our principal markets are
glutted with idle funds. Currency Ia
flowing In this direction TO find at
least temporary employment the re.
suit being exceedingly low rates for
call money Indications now point to
gold exports at an early date either
to South America on foreign account
or to London direct. More or less
uneasiness exists In Europe over the
international situation which Is now
threatened by Italy's aggressive atti-
tude, so that money rates are rela-
lively iirmer there than i'm New York.
Bankers here would welcome a gold
ehlux at this time as tending to steady
the money market.
General business continues very
quiet. Conditions are sound, but con-
servatism and retrenchment prevail
In nearly every direction. II seems
to be generally accepted that there
will be no fresh forward movement
until the outcome of the tariff and
the next presidency can be foreseen.
There Is perhaps less apprehension
regarding political conditions at home
than was the case a month ago. but
big business is still much disturbed by
a continuance of the Investigation
mania at Washington, which natural
ly encourages a strong undertone OF
hesltancy' Mercantile conditions IN