The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-26
FINANCIAL NEWS
And COMMENT
Stock Market Is Heavy-Divi-
bends Are Reduced on
Panhandle Shares.
RAILROAD EARNINGS BAD
Uncertainty Of Effect Of Brit
ish Crisis q Wall Street
Factor.
RAILROAD EARNINGS BAD


yesterday. although the recession was not
extensive except In few descriptions
Trading was still OH contracted scale
with fair amount OF activity In the
forenoon. The one particular piece OF
bad news vouchsafed was the announce
ment that the Pittsburg Cincinnati Chi
ci.go and ST. Louis dividends had been
reduced from a . to a per cent rate
on the preferred shares and from TO
q 3 per cent. rate OH the common shares.
In general way. no doubt. the market
reflected "a little disappointment over tile
Indications that perhaps two months
might have to elapse before the Inter-
state Commerce Commission would decide
the Eastern rate case. There was also
some influence for restraint OF buying
dispositions in the British Parliamentary
CRISIS and in the uncertain contingencies
OF the lighting which Is going on In Mex
leo. still II could not be said that quoted
values responded very much to general
and special considerations or that the
price movement was governed by any
thing more than the process of making
and unriaking commitments by the pro-
fe.ssional community which has been going
on for 30 many weeks.
International Harvester made a dis
play OF aggressive firmness. which may
have inspired rumors OF new financing.
such as has frequently followed lately
any development OF strength in the stocks
OF n corporation. The fact that the Nor
folk and Western was able TO sell readily
Slo.000.000 Of ~ per cent. equipment
trusts on what was described as a very
satisfactory basis suggested that there
had been some exagEeration OF the diff
culties OF railroad financing. and the cir
cumstances OF the investment market In
the last few days have gone TO show that
bank buyers can be- found for good Sc
cur'ties. The steadiness Of British con-
sois in London. despite the disturbance
OF British conditions. IL undoubtedly the
result of the increasing ch-apness Of
money. for the relaxation of credits at
various centres Is forcing funds into high
grad. bonds and notes. The new New
York State AZ per cents sold yesterday
nj 1oe. their highest price so far.
There was n swift collapse In the Pan
handle common shares on the reduction
of the dividend. This was followed in
the afternoon by a sharp rally. from
which there was a moderate relapse be-
fore the close. Pennsylvania made a
sympathetic response TO the Panhandle
news. and the softness which Baltimore
and Ohio and New York Central aga In
displayed was doubtless related to tn.
same cause. A rather extraordinary in
crease In operating expenses. including
maintenance charges. was partly re-
sponsihle for the conservative action Of
the Panhandle directors in respect to
disbursements on the shares. The floods
Of last spring also played their part IN
making such conservatism desirable.
Under the circumstances OF most rail-
roads to-day there Is obviously little
margin OF income 20 take care OF alb
normal costs. fact which must ent,s
into the reckonings of the rate regula-
lions. Meanwhile the railroad situation
was further impressed on the Wall Street
mind by the A,chison's statement of
earnings for February, showing n de-
cline Of si.i62,OOo in gross. net earnings
decreasing $4,000. Judging from traffic
returns 50 far for last month the falling
on OF general business has been country
wide.
Northern Pacific reacted sharply. Its
course suggesting that the sharp advances
which II made the other day was oc-
casioned by the hasty retreat OF AN UNI
comfortable short interest. There was
not much to choose between the nove-
ment OF railroad and Industrial shares
United States Steel was somewha,
heavier than most OF the standard stocks
In Its department. and Bethlehem Steel
Tell rather abruptly. Advces from the
steel trade were not cheerful. All the
weekly reviews reported the steel bust
ness as marking time and said that ef-
forts to put up iron prices had been un.
successful.
Further weakness developed In the
Corn Products issues on account Of the
Federal litigation in which the company
Is involved. and its affairs Inspired a little
spread or comment on the harassme mt
OF lawsuits to which corporate enterprise
Is now being 80 widely subjected BY the
Government. Attempts were made 10
talk up copper shares on the reputed
strength OF the copper metal situation.
Copper issues were an exception TO the
general heaviness OF the London market.
but there Is good deal OF scepticism
In Wall Street about the genuineness OF
the enormous demand for copper metal
with which Europe IL credited This
ascription OF demand does not square with
the actual state OF the spreading and
deepening industrial depression which
exists on the European continent 1t is
accordingly hard to believe that Europe
!s inquiring for copper on "A larger scale
than In the most active period Of boom
times In recent years
Interesting items of a mildly encourag-
ing character were contained In the for
eign dispatches. IL wah Reported that
the new Offering OF $50. Gee. 900 OF Bel
gian Government per cent. bonds at sO
had been very largely oversubscribed
but this may be owing to the lottery
terms on which such bonds are put out
The apparently firm undertone of the
London stock market despite surface
heaviness was noted favorably. Never
theless. some doubt was felt AZ to whether
this was more evidence OF the completely
sold out condition of security markets
to-day. condition which seems to make
them insensitive to bad news. or whether
it might be found to signify failure 10
realize the gravity of the political situa-
ton which Great Britain has on its hands
Foreign exchange displayed further