New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-05-30
SPECULATION ABOUT THE READING.
Tuesday. Nav 2g-p. m.


Since the announcement Of the sale by the
Philadelphia and Reading Company Of s24,6sl,oo
of its new As and SILL 946 $50 Of its first prefer
ence income bonds there has been no little guess
ing of what the company's annual charges ahead
Of dividends on the stock will be- They have been
stated as high as 81, 500, 600 There exists mis-
apprehension Of the amount Of the new issues to be
made and consequent duplication OF charges
where old interests have failed to accept the COM
pany's terms for exchange of one security for an
other. From semi-official source we receive the
following statement, as approximately correct as
existing agreements and outstanding Liabilities
now stand, subject to such reductions as may ps
made By full compliance with the scheme.
Annual
New ls 70 Be ISSUED .,..... 81, 5000 aOe6,44s
Totals ......... ssdSoT,o2o e. Gss. o oSS
Total haed charges ..~... G,283'ooo
First preferred income bonds sStosS9 9SS S Sd2
a 1s2S Sd n,S%. sdSs HSSS
T,tal charges II earned s819s,S42
Total charges before stock 81. slo,4s1, 8aI
The net earnings of the company in 1887 were
sI2,43O, O54, which was sl,o9s,e57 over the total
charges as stated above, or 50 per cent on the
year. the first five months because Of the strike,
have shown q loss in the net earnings OF
sI,400, 740. But the month of April gave small
gain over April, S87. II for the remaining seven
months the company does no better than IN the
corresponding time last year, its net for the year
will be s10,049314 or $1,000 over all charges.
But there is reason to expect that it will do better
than IL did last year. The talk about coal &C
cumulating now Is for effect at the Stock En-
change and at this season of the year Is about as
senseless as it would be in Angus to croak over
more wheat in the country after the harvest than
there was before it.
Why should the stock market, which seemingly
closed so weak and unsettled last eeening, have
opened this morning as buoyant as 1t dld Perhaps
the share loan market this morning furnishes
the best answer to the question. The demand
to borrow all Of the active stocks was unusually
large and pressing, showing that large part OF
yesterdays dealings which demorahzed prices,
consisted OF a material addition to the before
existing large short interest 1t is not necessary
that stocks should loan at a premium to indicate
an over sold market The Short stocks sold
yesterday are os available to-day In the loan
Inand, unless the buyers demand an actual de-
livery and take the stocks out of the market.
While yesterdays decline was accompanied by
transactions aggregatlng 2e4eo4 shares to,aS G,
1871 ,2O7 shares Philadelphia and Reading ST
Paul and Union Pacific were conspicuous for their
activity and strength. Missouri Pacific and New
York and New-England were equally noticeable
for their exceptional weakness. Rock Island.
which Yesterday was sold down to 05 3-8, to-day
sold Q0 O) at 1O7. The market closed strong at
about the best figures.
Tomorrow wednesday being legal holiday,
the Stock Exchange Adjourned to 10 a. m. Tnurs-
TIE DAY IN THE BOND MARKET
sJJnited States bonds were neglected and the
quotations for small amounts were steady as fol-
lows