New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-16
Dull Professional Market
for SeCuritieS-Trade,
Too, Slackening.
RAILROAD MANAGERS
ON THE DEFENSIVE
Charges of Irregular Accounting
to Get Higher Rates Denied
Banks Lose Cash.

The stock market last week lapsed
almost 10 the dull condition Of last No
yember with trading for the most part
professional and little outside buying.
The bond market, too, was quieter,
with a large proportion Of business in
the more speculative issues. The gen
eral slackenng of trade has reflected
itself in the absence Of the public from
the securities market. Similar condi-
tons exist abroad through reasons
largely political. Here the particular
depressing influences continue-the
menace Of a Mexican crisis and UNI
certainty as to how the government is
to treat the corporations, especially the
railroads.
Antitrust legislation at Washington
has advanced little beyond reports that
the prohibition of nterlocking direc-
torates vii be made much less rigor-
Gus and that definition Of acts pro-
hibited by the Sherman law may pos
sibly be abandoned. The plight of the
railroads, owing TO continued discus
sion and repeated poor reports Of cur
rent earnings, has been much IN evil
dence, causing pressure on transporta-
ton securities on the exchange, with
some pronounced declines In issues OF
those companies whose position is least
ODD
return. 10 the Interstate Commerce
Commission show that for 1IJ roads
net operating revenue decreased almost
1900. 600 in January of this year.
Railroad Needs Better Appreciated.
The railroad industry Of the country
has been the growth of years. The
great wealth it has brought to a few
is insignificant compared with the part
il has played in developing the whole
country. The welfare of this great in
dustry means too much 10 the wellbeing
Of the business life Of the nation for IT
to be long disregarded. That there
must be allowed a fair return for SER
vice rendered is apparently being moro
widely appreciated. President Willard
| of the Baltimore & Ohio has said that
the public seems more willing for the
roads to have relief through a small
advance in rates than through depend
ing on pay for service now given free.
| The railroad managers are showing
more disposition to demand fair con-
| f1,a Il 4 q
| Haven has made public a statement
from its bankers, J. p. Morgan & Co.,
showing that they had disposed Of It's
securities for small return instead Of
large, and denying the charge that
| they had prohted in the sales Of prop
| critics to the road.
/ Following the appeal TO New Jersey
| that the full crew law be rescinded, a
/ similar petition has been made to this
state. In it the railroad heads point
out that they are facing the greatest
| financial problem in the history of the
railroads. President Rea Of the Penn
| sylvania told his stockholders that the
/ railroads as whole were operating
|
for maintenance. Not being able 10
make a reasonable charge for trans
| portation, he continued, they were
| forced to make unusual economies,
throw men out Of work, and create
general depression and lack of conf
dence. But for all this railroad man
agement would refuse to take respon-
sibility.
| The attempt TO show that bookkeep-
ing irregularities, such as have been
charged against the st. Paul. were
being generally used TO produce argu-
ment for higher rates through fic-
titious accounting met vigorous and
prompt denial. President Rea, for in
stance, announced that hereafter no
statement rejecting on the manage
nent or the integrity of the officers of
the Pennsylvania would be allowed to
go unchallenged.
lndustrals Compete for Funds.
In addition to present difficulties, il is
being realized that, particularly for the
last twelve years the railroads have
been subjected in their constant neces-
sity for new capital 10 great competi-
tion from the industrial corporations.
Investment in securities has ceased to
be synonymous with railroad stocks
and bonds. The industrials, when cost
Of materials and higher wages
threaten to reduce profits, have no
state or national regulating commits
sion TO prevent them from raising the
price Of their products, and are able TO
offer more attractive yield to investors.
Even under favorable conditions the
railroads are unable 10 borrow at the
low rates formerly prevalent, and with
such meagre net earnings as are now
being returned from present trans
portation rates it is increasingly diff
cult TO obtain money needed even to
refund old obligations.
Conditions Of general business have
not improved during the week. The steel
industry continues TO present the most
favorable condition. Unified tonnage
of the United states Steel Corpora
ton at the end Of last month had in
creased over 100000 tons TO J,O26,44o,
but the Independent companies, it is
rcported, did not make proportional
gain in untitled orders. and buying this
month has been gradually reduced.
I a.