The Bridgeport evening farmer., 1914-03-07
IN FINANCIAL CIRCLES

 that followed the announcement of the | Enusl1al provisions of the sale of $33.- COG, GOO dve-yeaT 5 per cent. notes of the Chesapeake & Ohio, there were some important side lights on the transaction that escaped general no tfce The dndentlm-e securing the notes, covering the provisions that re- d11dre the total payment of $17,O00, GOO for capital expenditures during the life of the notes before dividends may be paid, states, quoting the letter from the company to the bankers: No div ddends are to be paid or declared on the stock of the company unless it's net Income after April 1. 1914, shall be in excess of ald matured irstaa1ments of said fund and of the dividends paid quemt to said date" In effect tllis means that the company will measure dividend surpIuses by the fiscal year and not by each quarter, although the company will pay the yearly sums for capital expenditur in quarterly in staIlments It also means, for exam pie, that in the fiscal year June 30, 1915. when $2,O0O GOO must be spent for
 capital purposes that the company could, if it wished pay the present per cent. dividend rate, even if it were not earned. For instance, in the fiscal year ended June 30, 1915, to pay the trustee $2, ,0o0,0O0 for capital e1pendi- tunes and pay the per cent, dividend would require earnings of about $4,- 5o0000. If actual Earnings were but $4, 900, 900 the company could, if direc-
 tors deemed 1t al1yksable pay the full per cent, taking the $506,000 needed to make up the entire annoumt out of profit and loss
 Union Pacific Fsaflruad Co.'S profit and loss account as of Nov 30,r 191S, shows qlnappropa'1ated surplus of $129. 647, 1885, as follows: Credit on bond conversions SIS. 200; surplus in-
 come $159.722, ,1es: appropriahions for
 bet#erments. etc., written off, $S,560,- PAP reserve for maintenance written off, $2 766, ,637; miscellaneous credits in excess Of miscellaneous debdts $7,186,- 978 Total debits are $31, ,456, 271, con- sistfng of discounts and premiums, S14.- 66O 896: depreci ation on equipment,
 $SS0.077: appro proprdations for better rnents, Improvements and equipment, s. 967,651; reserved for renewal or re-
 placement of rolling stock, S, 9,939, 647
 Directors of the Pennsylva1lda Rail- road it can be stated on high author ity, are more than willing that the question of the legality or propriety of Penalsylvanfa own ership in Norfolk & Western be settled by the U. s. Su-i preme Court They feel that proceed
 tngs to this end would result in vim
 dication for tF1e road podnting out
 that on any reasonable interpretation
 of the Sherman act, the Norfolk E. Western is not a parallel and conn petine line The two roads collect their freight in diferent fields and do not compete for 1t. The N. & Wis seaport is at Norfolk, and those of the Pennsylvanda are at Baltnmore,s Phdi- asdeIphia and New York The fact that the two roads reach the same markets in bhe west, Norfolk by the Panhandle and PennsylvaIria. by the 1 Fort Wayne is not considered com petitive unless the courts say what I they have never held before-that the I same markets constitute corfoetition 1 in spite of the different freight creat- ing area
 I For January the Western Pacific I Ryailroad reported a deficit after taxes 1 amounting to s124,305, comparing with 1 a. deficit of s2.s89 in the corresponding l month a year ago. For the seven
 taxes total1ed $57S, ,107, against $9z5,670 l a. year ago.
 Stockholders of the Goodyear Tire l ls Rubber Go. have unanimously ap-
 proved the plan for the sale of g, 900, I 900 preferred and 8, 2,O00, 900 common l 14 to exercise right of subscrtption and most of the stock has already been sab bscribed for The sale or this I stock does not increase the capital, as l it had been held in the treasury A skaTge percentage of the steel now
  Steel Cooperation is being exported. This accounts for the fact that the I Pittsburgh mills are operating Iarg- 1 CT percentage of their capacity than l the mills further west.
 (Henry C1ews.)
 I Generally speaking the business sit tatdon is sound, and the outlook is for Improvement when spring approaches. The declining tendency of money has been checked, and there is the possi- 1 bility of temporarily hrnler rates as I the first Of Aprdl approaches Bank I reserves have fallen from $40, ,000, GOO in 1 the hrst week of February to below $27, ,000, GOO a week ago loans mean 1 while having steadily increased from $1, ,849, 900, GOO December 13 ito $2,059,754,- I 900 a, week ago. The reserves. however l will soon be aided by the return of 1 Canadian funds to this market, which l will serve to compensate for the fur l ther outflow of gold to Paris. The | western credit situation still attracts some attention in view of the read es- tate situation out there, aHHd the fact l that the farmers are in debt more heavily than usual, although not to | any embarrassing extent. The croT l situation is now a matter of increased l interest, and the heavy precipitation Of snow and rain during the winter ally good condition The railroad sit owing to declining earnings.
 A special election for Limited Nrlu-- ~ IL