Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-08-14
speculative. as it is of the producing. end OF
a hInsirnaSS
From a Brokers Standpoint.

speculative. as it is of the producing. end OF
the business.
From Brokers Standpoint.
In their regular weekly market letter A.
j. Lawrence & Co. say: sour market the
past week has spoken for itself, and traders
gene rally have applauded its course. the
natural gassers have ruled strong and
higher, and the only complaint that can be
made against them is that the advance has
been so rapid buyers could not execute or.
ders within the limits prescribed by princi-
pals. In the case of Philadelphia Company,
there hau been very prevalent opinion
that large blocks of it would be for sale
around $40, but the market has not JUSTIFIED
this opinion. When dividends were resumed
last April the price did not reach the point
anticipated bv the bulls, and the little pools
here and in Boston evidently got tired ana
liq Undated before the present rise. The mar
Set does not close at the highest point, ana
if the rea ction goes little iurther it may in
duce a short interest, and, at the same time,
accommodate the tardy bulls.
"The per cent semi-annual dividend de-
clared on the United States Glass, common,
was above expectations. We had Deen lea
to expect per cent for the year, Dut tne
per cent announced is out of the earnings
of the past six months thus making it a
per cent stock, and at 20 an sI per cent IN
vestment The fact that the dividend IS
semi-annual is OF even more iinportance
than the rate, for the reason that investors
do ..ot care to wait Il months for returns, ana
securities that make quarterly or seml,an-
nusl dividends command relatively nlgner
! prices than those which pay lump sum
once a year. We believe that the next semi
| annual dividend in February next will be at
an increased rate, and that eventually Glass
| will be one of the best paying investments
| in the market.
Brake, Electric and Union Switch and Signal
have all done well. Air Brake has fully
recovered from the temporary pressure or
| two weeks ago, and is now quoted firm at
l999l3O Electric has displayed a broaden
| ing tendency, and the important contracts
reported as booked during the week are ev1-
| dences that the advance is based upon in
creased earnings, as well as upon the wider
investment and speculative interest being
manifested in this class of securities. The
prin cipal trading has been in the new COM
mon, or rather second preferred stock, and
the best opinion here and in the East is that
it will sell considerably higher. We are not
so much in sympathy, however, with the
sudden advance in Union Switch and Signal
We know that the company Is doing a
splendid business, and this will probably be
the best year in its history; but we also know
that it has had an uphill road to travel, and
that while its progress is becoming easier, it
is not vet within hailing distance of divi-
dends. We will be glad to revise this view
when dividends are resumed on preferred
stock which goes begging at 20 per cent dis
count.
ave would like to refer briefly to an invest
ment feature which is now attracting gen
eral attention throughout the country. We
mean the operations of what is popularity
known as the Philadelphia street railway
syndicate. 1t has quite recently very largely
increased its interests in New York city; it
is pushing its rapid transit schemes for
Philadelphia; it has control OF the principal
lines in Chicago; it manages the most I'M
portant com blnation of roads in Pittsburg,
and every week Grings reports OF its plan
for acquisitions in other leading cities. This
syndicate is composed of some OF the
shrewdest and most successful fnancers in
the country In forecasting the future and
sizing ud' the probable value of an invest
ment they have no superiors. We do not
know the process of reasoning by which
they arriv ed at their present Judgment, but
a cursory examination of the statistics in
the current number of Poor's Manual relat-
ing to railroads, and a comparison of the
State reports on street railways, goes far
toward forming a preference for
the latter In 1882 the gross earnings per
mile of all the steam railroads in the United
States were $7,3U and the net s., SO In 1881
the gross per mile WAS S6 So and the net
s., 1885, OF sl,l25,OOO.0OO gross receipts last
year, but $50, ,000, 600 WAS availa Dle Tor divi-
dends, and the average rate paid on the
total share capital was 1.s5 per cent, COM
pared with 29l per cent in 1882. Here ia a
steady shrinkage in net earnings per mile
and dividends paid by the railroads. Similar
statistics are not at hand on the cable and
electric street railways OF the country, but
we may take two representative Pittsburg
lines. According to the State reports for the
year ended June 30. 1891. the gross earnings
of the Citizens traction (cable) were S64O, coo,
OF S53, 900 per mile, and the net after the pay
ment OF nAeU charges, ABOUT SZUOUuU, or
nearly sl7 600 per mile, and the dividend paid
was 6 per cent. For the year 1891 the Pleasant
Valley (eectric) earned $685., 900 gross or Sl5.-
900 per mile, and $500 net, or about So, 500
per mile, an paid per cent. The percen-
tage or net earnings on street railways in
crosses with the gain in gross. and the in
PRODUCTION of cables and electricity re-
duces the percentage of operating expenses.
They are free from rate wars and adverse
legislation and are not affected by a short
age in the crops. 1t is true that they have
S%.,ls Fnx-
as the local lines are concerned they are
quoted 'ex-water' in nearly every instance.
Pittsburg has one of the best equipped sys-
stem in the country, traversing territory
that is showing phenomenal growth, and on
which the Philadelphia syndicate has al
ready set the seal OF its approval"
Tips From Wall Street.
Watson & Gibson to Oakley & Co.: Bears
place great stress on the fall in the price of
silver as conclusive argument against our
allowance in the price of stocks, but they
forget that in the late summer and early
autumn of 1890 silver rose and stocks de-
clined. They say also that with smaller
crops than last year and larger crops in
Europe it will be impossible to have as good
a market as last autumn. This does not fol.
low, because our crops were so large last
year as to neutralize much of the advance
that might naturally have come in con-
junction with the shortage abroad, and our
stock markets natural tendency was neu-
traliZed by the continuous sales for foreign
account. This year We are certain not to
get back ANYTHING like the quantity of
stocks we had to take care of last year, and
which, for speculative purposes. did not
differ from a fresh creation OF securities
'The tone from London this morning was
most despairing and our local news teemed
with torebodings of disaster. We DO not
underestimate e, we hope, the face of this pes
simistc feeling, but we believe it is too ex-
aggerated to endure the tremendous bear
ishne1s of the London Stock Exchange. The
London correspondent of the Financial
Chronicle writing July 80, says: AT the tort |
nightly settlement on the Stock Exchange,
which began on Tuesday, there was found |
to be a very large bear account open. Bears |
had to pay heavy fines for non-delivery of |
the stocks of all the best British railway
companies. For instance, the premium |
paid Northwestern stock was q per |
cent for the OF it for a fortnight. 1t |
may be readily imagined that with all the |
wild alarmist talk about an early break |
down of gold payments, the brokers and |
spectators in London have none of our |
speculative issues, but are short of them
short looks to them like particularly easy
way of making money just now. If appear |
ances must always be our guide London
will not buy our stocks until after we get |
into aud out of panic; but are appearances |
always a sale guide? We do not urge our |
stocks; we prefer that they should simply |
read what we write and reflect upon it. 1t |
gives them something tangible either to in |
dorse or criticise and every person should |
think for himself and not blindly follow any |
man. That we are bullish is evident to our |
plain to them from perusal of our letter. |
E our lOpic g wrong If Is their Inn 70, |