Evening star., 1917-04-01
RAILROAD SHARES GAIN
IN FAVOR WITH PUBLIC
Net Earnings Show Satisfactory In
crease, 0ffsetting Wage
Concessions.
Forecasts of Security and Invest
ment Situation Clothed in
Optimistic Terms.

NEW YORK, March 31.-Strengthen-
ing of the railroad shares has been one
of the most pronounced features of the
security market since the settlement of
the trainmen's strike. Although the
method of settlement has not been to
the liking of the financial community,
the recent reports of gross and net
earnings have gone a long way to Off
set the dissatisfaction which the sur
render to organized labor has produced
among investors in railroad securities.
Net earnings, according to latest avail
able estimates, have in most cases
shown very satisfactory increases. and
the movement which has already been
inaugurated for the granting of a
higher schedule of freight rates bids
fair to be more productive of satisfac-
tory results than many of its predeces-
sors. These are important considera-
tions. and their effect viii be trans
lated in terms of greater public favor
for the railroad shares.
Americans Getting Dividends.
Another factor which will have con-
siderable effect upon the stability of
railroad stocks is the extent to which
the European liquidation has been
conducted, thus removing all danger of
an inundation of the market from for
eign sources. Mr.. Lorees investigation
discloses that the total of the European
holdings of American railroad securi-
ties has decreased from s2,7o4,402.364 in
January. 1915, to $1,1S5,S11.4S6 on Jan
uary 81, 1917. Even this estimate is-
nores the large holdings of securities
that have been transferred to the Brit
lSh treasury, and which are thus util
lied as collateral for loans or held in
reserve According to these statistics,
3615 per cent of our foreign-held rail-
road stocks have come home" since
the outbreak of the war. A beneficial
effect of this liquida ton is also seen in
the remittance of dividend and interest
payments to American investors for
American consumption, instead of fat
tening the pocketbooks OF foreigners.
Investments and Money.
Every forecast of the security and
investment situation is clothed in the
most optimistic terms, and the increas-
ing demand of investors for high-grade
securities is an evidence of their be-
lief in the underlying strength of
Americas industrial position 1t is true
that periods of indecision and reaction
are not infrequent, but these do not
in the least detract from the strength
OF the market as a whole. Those who
are in a position to read the signs
OF the times are quite unanimous in
their prediction of fair weather on
the business barometer regardless of
the extent to which this country may
be embroiied in the world conflict. The
speeding up OF the wheels of industry
is sure to be reflected in terms of
greater earnings for our industrial
combinations. and in higher range Of
prices in the stock markets
The influx of gold continues, the total
imports from all sources to date this
year being in excess of s230,000, 900,
and since January, 1915. to nearly one
and a half billions of dollars Consid-
ering the enormous demands that are
helng made upon the money market,
both for foreign and domestic financ-
ing, borrowing rates remain remarka-
niy easy. The country's riches are in
an extremely liquid condition. and this
is. after all. the best form of financial
preparedness W. S. COUSINS.