The sun., 1912-07-07
GOSSIP OF WALL STREET.

Southern Railway preferred yesterday
sold at 78'.. the highest since 1901. when the
high mark Was e<i.. The absolute high
record Ia lot. touched January. 1908. IN
August. isOe. the stock sold as low as ~
On account OF the extraordinarily large
cotton crop last season the earnings of the
Southern roads have made a conspicuous
showing in a year of poor railroad bust
ness. taking the country a. a whole. The
Southern Railway Company. whose pros
perity depends to n large extent upon the
cotton crop. was particularly fortunate
in this respect and earnings on the system
have Increased to such an extent that Wall
street IL considering the possibility OF
larger dividends in the near future. The
present dividend Oh the preferred stock
Ia at the rate Of ? per cent annually. and
the directors will meet In August to de-
clare the next semi-annual distribution.
From 1902 to Aprn 1907. the preferred divi-
dend was at the rate of ) per cent. annually.
In October. 1907. the company paid Ia per
cent. out Of accumulated surplus. MAX
ing the total distribution for that year per
cent. The runlOr circulated in the Street
is that the dbidend on the preferred stock
will he restored to the s per cent. figure.
but gossip does not specify whether the
company will declare a hst . per cent
dividend at the next meeting. making 5
! per cent. on the iss,e this year. or whether
the declaration will be -: per cent.
| For some time past the industrial list
on the stock Exchange has enjoyed rela-
lively greater amount of attention than
the railroad stocks and the average price
Of industrials has advanced more rapidly
In proportion. The railroads have in fact
distinctly Jagged. In the last few days.
however. there have been noticed signs
OF relatively grcater frmness in the rail-
road list az "a whole quite apart from the m.
ward movement in particularly issues like
Great Northern and Southern Railway
preferred. The decline in the market on
Friday. too. affected the railroads far less
than II did the ind'Istrials. the net fall in
the former case being 40 per cent. and In
the latter ?.Oi per CEN. All this may have
some connection with the bold prophecy
made in one Of the end Of the week COM
mission house letters that the stock market
for the next sixty days will he a railroad
bull market"
The deficit Of s5.4i3.ooo exhibited in the
actual surplus reserve OF the bank state
ment yesterday IL the first that has been
shown since the trust companies entered
the Clearing House little moro than
year ago. This is also the first deficit
OF the size that has been showa IN the bank
statement for several years. The feature
Of the report that attracted most attention
was the fact that the actual return made
a worse showing than the average figures.
whereas the reverse was expected. II
was anticipated that the average con-
dition would he poor. since II would more
fully exhibit the influence of the July
7 dividend payments. but that this would
he more or less overcome in the actual
statement by the return now of funds
The 'call money market on Friday
Il usually considered the best forecast
obtainable Of the showing TO he made by
the banks on the following day. The only
manner in which yesterdays exhibit was
foreshadowed on Friday afternoon last
was by rise in the renewal rate for call
| loans to -. per cent. Previously during
| the week the average rate had been -.
per cent. Wall Street will probably await
the opening OF the ca n loan market on
Monday with greater interest than il has
| given TO the money situation for many
| months past.
prominent Wall Street firm In its maj arket
letter concludes a discussion Of the political
situation as follows: Great confusion a.
usual has produced reason. We are not
hystericai people At heart. Rooseveltism
We quote at i7's. Bryanism We quote at
~. bid. asked. market nominal"
A batch OF railroad earnings received
Yesterday included the statement Of the
Great Northern for May. which showed
an increase In gross Of>S63O. 900 and an in
crease In net earnings OF s3ic 900. For
the eleven months Of the fiscal year IN to
the end OF May tho company has mana Ged
TO reduce operating expenses by Sji<. 900
and to increase net earnings some 81 ,i<7 mo-
Gross earnings for the month OF June in.
A. AaSA NJ la ssrsl,
this report were those of the St Paul and
| Illinois Central. With only one month
OF the fiscal year to be accounted for |
neither OF these companies in May succeeded
In reducing the years already large de- |
crease in net. 81. Paul's gross decreased
sl0a.slS and net nearly ssoo.OO In Aprjl |
the decrease In gross was s3Oc $50 and the |
decrease in net $751; .s5j.
In spite of the usual slowing I'D of busi.
ness and stock taking incident to the Sc n.
son. bank exchanges over the country for |
the last week increased 10 per cent The
gam IN New York was i3i: pcr cent Chicav 70 |
Ia per cent. Boston rs per cent ., Bait inore
81 per cent. and New Orleans 3 per cent !
Marshall Field 4 Co. in their weekly review
OF me dry goods trade say. Fairly active |
business IN wholesale lines during the week |
Indicates normal consumption Of SEASON.
able merchandise. Retailers generally re-
port business IN excess OF the same period
year ago Shipments have been very |
satisfactory and more buyers have been in |
the market than during the corresponding
week In 1911. Collections are normal and |
excellent crop growing weather has infiu- |
enced merchants to anticipate their future
needs. Large West rrn merchants nnd
their buyers are beginning to arrive TO m axe
their purchases Of fall lines. The clos. of
the six months finds stocks generally in
good condition and distribution for the frs,
half Of the year has been even better than
might have been expected during so buck-
ward a season."
Lounsbery Co. have the following to
say about the Montreal market: "Ho,
weather Is beginning to have its effect ON
the Montreal Stock Exchange During