The Providence news. (Providence [R.I.]) 1891-1906, 1895-06-12
FINANCIAL NE WS.
Another Big Boom in the
SpeciaIties Promised.
Local Stocks Beginning TO Feel the
Upward Pressure
Special TO The News.

NEW YORK, June 12.-One Of the most reas-
suring signs Of the times, and one upon which
the safest calculations can be based, is the
strength Of the outside security market.
Even when stocks react, and bonds temporar-
lily weaken, not that such has been the case
during the past month TO any appreciable ex.
tent, outside securities continue TO be in the
best demand, and brokers that devote their
entire time TO these say that tho market has
never presented such IA healthy complexion as
it docs today. 1t is robust TO a degree. The
professionals are no longer as bearish as they
were, and they seem TO think that after all
there will be squirt Of no mean proportions
during the present month.
Authorities agree that most OF the damage
that came on winter Wheat originated with
the drought. They do not believe, however.
that the crop will aggregate rs per cent. less
than last year. The present weather is first
rate for Wheat, and will probably continue
seasonable until the crop is definitely assured.
Western men telegraph that il will turn out
better than il was thought possible "A few days
ago, and il will fill out much better than has
been generally expected.
There is no doubt but that specialties will
come well to the front. Sugar preferred is on
its way TO l.l0. The stock will very quickly
recover the dividend of ia per cent, and the
common will have another squirt. There has
been excellent buying of both. United States
Leather. after the middle of next month"; will
become a regular 8 per cent. dividend payer
In the railroad share list, L. NJ, bids fair to
command "a great deal of attention. The old
directors party" which has practically
been doing nothing in the market for some
tirnp sav that tho aarninpa pf I. will nick
up quickly, and that tho net results for the
last half of the present year promise TO insure
a speedy resumption of dividends. 1t is highly
probable that the directors will not take any
action upon this dividend question at their
August meeting, but it is certain as events
can be that by February l.. NJ, will re-enter
the dividend paying ranks on at least a per
cent. basis. In the meantime the stock is
likely TO sell at IS.
Traders here took only one view of the Gov.
ernment crop report, and the steady advance
in the Changers reflect this view. A good
portion of the buying was on orders from
the West, and London was not in it.
AMERICAN BELL TELEPHONE COMPANY.
The Boston News Bureau publishes letter
from one well informed about tho American
Bell Telephone. company, which is said by the
leading Providence bankers and brokers TO be
well worth quoting. 1t is as follows:
'The action of the United States Circuit
Court of Appeals in reversing the action Of
the lower court on tho Berliner transmitter
case has removed all chance of further patent
litigation and places Bell stock again ON
purely investment basis outside the pale Of
speculation.
"Many persons are misinformed regarding
the American Bell Telephone Company, and
the hue and cry Of monopoly is not well
founded rs one would find out if a careful
study of the company's annual reports were
made. For all the money ever invested in the
telephone industry by all Bell companies, not
over per cent. has been earned on the money
invested, although the Bell parent company,
owing to its peculiar relations with the sub
companies, has been able to oarn large divi-
donds
IL believe tho American Bell Company stock
is worth 500 at IL per cent dividends with no
extra dividends and no stock rights, and
look for the stock TO go TO $3.50.
"Tho company will probably soon mako
another experiment of selling its stock by
auction, although the last auction sale was
very unsatisfactory to both tho company and
its stockholders But the company needs the
money, as its sub companies are making ex-
tensions and as partner in these companies
the parent company has to pay its proportion.
However, there is a possibility that the
company may issue debenturo bonds, instead
OF selling stock by auction.
IL think the Bell Company has made a mis-
take in not advising the public more fully
what it has cost tho company 10 introduce
the telephone and how little money has been
earned on the total money invested.
"You do not hear very much now about
the Standard Telephone Company. These
companies look well on papor, and often sue
cecd in getting large subscriptions 10 their
capital stock. The systom tho socalled
Standard Company intends to use was tried
by the Boil Company, but was thrown out as
unsuccessful. IL is called the make and
break system, and its great fault IS that IL IL
subject TO atmospheric conditions, and Is
therefore unreliable, and no business man
would be satisfied with 1t.
al believe tho American Bell Telephone
Company is entering upon another reign Of
prosperity, now that 10 has been successful In
It's patent litigations. and the revival % bust
ness, which seems 60 bo permanent. will help
IL. stockholders need have no fear Of compe-
tition. as the company is too well established.
What appears 90 bo n reduction Of rates by
the company Is only change of system Of
charges. which in the end will bring In more
revenue than the original rental charge
system"
ToDAY'S STOCK HOKHD.
WALL STREET, Juno l2-Tbo stock market