Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-07-17
STOCKS AND MONEY.
course of and Prospects for Specula-
tiOn and Investment.
FOREIGN CONFIDENCE GROWING.
Gossip About Local Securities and Leading
Corporations.
TIE MARKET CLOSES DULL BUT STRONG

eral business has pursued the even tenor Of
it way during the past week, reaching 6
volume unusually large for the time Of
year, there is no question that, despite the
abundance and ease of money, speculation
and investment have been restricted by
various untoward influences. In Wall
street the apathy was ascribed mainly to
the agitation of the silver question, the
progress of the English elections, anti-op-
tion legislation and the troubles prevalent
in the industrial world. 1t was no ticeable,
however, that with the fear of free silver
removed trading improved but little if
Rny, so that it cannot be said
Enormal condition will rule before the in
fuence of such factors as anti-option legis.
lation and labor troubles have been re-
duced to a minimum. Aside from these
factors conditions seem to be improving,
particularly abroad. "The impression ap-
pears to be very general" says Henry
Clews, shat the series OF reactionary in
huences which set in with the suspension OF
the Barings have now, after an interval OF
about two years, worked out their worst
results. and that henceforth whatever
changes may arise in the general situation
are likely to he for the better. Indeed, al
Tea0V traces OF steady recovery are aD-
parent, both in the old world and the new"
Locally the labor troubles have dominated
Investment and speculation, and to u certa In
extent sympathy has been shown with out
ride factors. There has been no depression
In prices. however, and in some lines,
notably real estate, business has ruled some
what above the average midsummer volume.
In the stock market frmness has been the
most prominent and encouraging feature,
and some of the leading items OF the list
have shown tendency TO advance. In the
(ooo @h dt,lln far ms a r.
cepted as evidences OF inherent worth and
indications OF an upward turn when the
.chief deterrent factor Las been eliminated
from the situation.
The Street Railway Shares.
There have been no movements of conse-
suence in this group. Citizens Traction
and Pleasant Valley about lost their divi-
nends, and p & B. Traction was the only
weak point, declining to a close at 2511
bid. The mystery surrounding the
dividend question was the main cause.
A good many had been led to
believe that dividend would be delared in
July, and the failure OF the directors to
take any definite action on the matter
created considerable disappointment. The
month is not over yet, however, and hope
has not entirely fled. People conversant
with street railway matters have not lost
any faith in the road or its future. They be-
lieve it to be one of the best systems in
less proportionately than any other owing
20 its short line. There is disposition,
however, to criticise tie management in
cars instead of disposing of them
at anv price obtainable and securing
smaller ones that can be more economically
managed. "P. & B. is all right" said a street
railway man tot day. 1.-THE roads receipts
are not likely to increase much until its
feeders are in running order, but they are
. large proportionately, and as soon as the
oRm the neceSaitv for sma1lar
cars and put them into operation, you will
hear more bull talk on the road than is now
current"
Central Traction has continued to be one
of the mysteries of the market. 1t ad-
raRced a little under fair inquiry, closing
at % bid, but for road admittedly earning
500 per day net. or more than per cent on
its paid in capital, the price should hold
firmly at the amount per share paid in
the stock Was heard, and until dividends
are commenced the reason why they are |
not commenced will probably continue to
be an insoluble problem.
The combine-Pittsburg Traction and
DuQuesne Traction-has been talked abouta
good deal, in consequence of its increased
earning power. That the Pirtsburg Traction
maonates know q good thing when they see
it is evidenced by the frmness with which
the stock is held and the sentiment on Du-
ouesne is reflected in steady inquiry tor
the stock and its hardening tendency. Good
Judges believe the combines July receipts
will reach $50 600 and that the Duquesne end
Citizens Traction has not varied much IN
price. 1t is high enough, perhaps for a per
cent stock, and until Its dividend rate is in
creased it is not likely to range much
Pleasant Valley and Pittsburg, Allegheny
and Manchester traction have been running
along in the shadow of the deal for the ab-
sorption of the former by the latter, with
little disposition to do anything in either. |
Nothing new regarding the deal developed,
but II was neither dead nor sleeping The |
Pittsburu A Allaulenv and Menclester nonpla /
held two or three informal meetings during |
the week. but they did nothing for publi- |
cation" A Pleasant Valley man said to- /
day, however, that all the obstacles had /
been removed and that the deal was ready /
for ratification.
: There has been a good deal of talk about |
the ability of the bine, il it is effected, |
10 pay dividend on its proposed S., ,000, 600
capita lization, and on this point the follow |
ing figures, furnished by an insider, are of
interest: For the first nine days OF July
the receipts o: the Pittsburg, Aneg gheny and
Manchester Traction Company were sl2.0o9,
or a daily average OF sl,34O. The Pleasant
Allegheny Traction, with its horse car sys-
tenn about Sl00 per day. For the sake of |
being on the safe side let US say that the
PittsbUrs, Allegheny and Manchester is
earning ST. 300 per day, the Pleasant Valley
81, 100 and the Allegheny Traction sl0o. On
this basis then, the combine would have
daily average receipts OF s., 500 per day. or
gross yearly earnings of $9l2, 900. From this
sum let me subtract the interest on the total
bonded Indebtedness of 81, $50, 600, or Sl37 500,
and we have $4,000. Take 50 per cent of
this Tor operating expenses, anG we have
left SSS7. 500 applicable Tor dividend purposes
on the S5 O0O.0 90 stock. To pay per cent re-
quires SS0O,0O0, so that, according to these
figures, the combine could pay per cent
and have SS7, 500 for nest egg.
81 know Il good many believe the COM
bined roads could not be operated for 50
per cent, but that has always been the basis
of calculation when the deal has been dis
cussed ON the inside. 1t must be remem-
bered, also, that in the result ar
rived at no account is taken of the
reduction in operating expenses that
would occur under the combine or of the
fact that the Allegheny fractions receipts,
under the electric system, would be ma |
teriallY increased. 1t is possible the roads
could not be operated for 50 per cent imme-
diately, but 1t would only be a question OF
little time until they could be-"
In this connection it may be said that the |
dend this fall On this subject President
Daizel said: I've have decided to make |
semtannual dividend October i next. The
directors have not yet decided the rate, but
1T will probably De ~ per cent"
With respect to the present and pros
pective value OF street railway securities an
authority furnishes the following: "lt is |
quite likely that the handsome returns
which the street railway companies in the
dluerent leading cities OF the country arc
showing. Will create q wider and more gen.
eIBl interest IN this class of securities. For |
some peculiar reason street railway securi-
t1as, barring those of few big companies, |
whose operations are continually discussed !
in the public prints, do not command the
proper share OF attention, and hence their |
values are not correctly understood nor the |
prospects of the companies appreciated. |
Many OF the local railway stocks which sell
on or per cent basis, are certainly as
good as bonds which sell on a per cent |
basis. In fact, as they enjoy the dement, OF