San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-02-04
Mutual Understanding Develops.

when Europe owes lHe OHilVu S'"','
but which nations of Europe owe each
other.
Mutual Understanding Develops.
1t means a mutual understanding
and respect between the United States
and Great Britain at time when their
cooperation is essential to ending the
decentralization in Continental Europe.
For this reason it is fully as important
as the agreement on naval disarmament
a year ago.
1t is impossible to believe that Con-
gress will not support the government
in the proposition which it has made
and which the British people have
adopted. In fact a survey of the situa-
ton in Washington suggests approval oil
the terms without much opposition.
The second constructive factor is to
be found in the series Of railroad earn
ings present for the month of December
and the completion record for the 1922
calendar year. This record has been
most heartrending. 1t shows the natural
vitality of our great transportation sys-
tens and the ability TO so forward sat
isfactorily if they are given a fair
chance.
In a number of ways 1922 was one
of the most difficult years since 19l7-
is in railroad administration. The
irritations were more numerous anu
more vital, the costs were higher, the
efficiency of working men lower and the
fluctuations of traffic more confusing
than at any time in the last four years.
Railroads Come Back Strong.
But with it all we see the Baltimore
and Ohio, whose loss from the shop
mems strike was $10,000,O0O, coming
back strong under the management oil
Daniel Willard and in December earn
ing 200 per cent more net than in the
same month of 1921 and S2,00O,O0O
more net for the year than in 1921.
We also see the st. Paul, under
President Byram increasing net 160 per
cent. This temporarily relieved bond
| holders of fears that interest may not b'
earned. The conservative Northern
Pacific, careful to protect its resources
and promptly reducing its dividend wher
| surplus began to decline, earned IS.
GOO,0O more for interest and dividend
than the year previous, the Chicago I
| Northwestern earned over $1O,OOO.Wt
more and the Southern Railway gained
40 FER cent net. The New Haven hat
a net income of over S12,000,000 com
pared with $4,000 the year before.
Net Earnings Increased.
These are properties whose stock
holders have shown concern from tint
to time in the past year and it is there
fore satisfactory to them and helptu
to the entire investment situation tina
earnings are now recorded in black an
not in red. The story does not EN-
here as January net results will ais
be very gratifying.
The third factor of helpfulnesS is tina
underwriting syndicates have relieve
the investment market of furthe
flood of new securities and have there
by given it a chance to catch up wit
new supplies of capital for invest
ment. January has established rec
ord for capital emissions. Nearly three
quarters Of billion dollars in privat
corporation bonds and stocks and ov'
$500. 100000 Of government obligation
have been offered the public.
Ruhr Invasion Affects Bonds.
1t is small wonder that the market
have been clogged and prices have sal
ged. The same conditions develop yei
; after year, but not in such degree ms
this year. Distributors of securltl6
Over-eStimated the capacity of investo
. | TO take new issues and they under-e
{ timated the vital bearings of the Rul
) invasion on all investment sentiment.
, This latter influence has reduced u
/ marIet value Of listed foreign COVER
1 mPnt, muniCipal and corporation bont
approximately S100.000,000 and II h
I also deprecated values of some of q
$ best American railroad. industrial al
: public utility bonds. The Construct
factor referred 10 above, however. oug
: gradually TO change the aspect Of thin
4 marketwisc, even more than was n
parent in the fairlv buoyant clOsil
- Al. ,n..I.4 e., roro;nr bnnIc