New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-12-12
.Haaneiai.
The Financial { Word. |


The Financial World. Il &
While there VIII b. temporary f,,ctustioas :
the stock market from special causes, the
movement Of the bond market In the bAst two
weeks indicates that . rising tide q
speculation. Apparently we are working IN
again. BY somewhat jeriy movements. to our
summer bull speculation: which eliminated
the latter part Of September. The grange
shares which led In that great movement, arr
not 20 very far now from the best prices they
made then; and there 10 no reason to believe
that they will not 80 above those prices whea
the market gets Its next well supported for.
ward impulse.
Among these stocks. Burlington stands
forward as the next one to have its dividend
increased. Rock Island ana St. Paul have al
ready led the way. The earnings Of the Bur-
lington this fiscal will probably move the
directors to follow. The officers Of the company
are feeling cheerful over present returns and
future prospects. TIE companys gross earnings
promise to exceed the banner year OF 1892,
in which case they will run up to about SAL.
100000. This will be an increase Of hva to six
millions over the previous year. 1t is a large
increase. and will justify the raising Of the
dividend rate As 8 per cent stock North.
west sells above 120. The bull speculation In
Burlington may be expected to carry that stock
UP between 10 and 112 The fact must not b
lost sight Of. in relation to these dividend pay.
Ing securities. that money is cheapening ana
therefore the value Of securities rising in CORE
spending ratio In last weeks article the Inn
portance Of the Rock Island bond purchase was
pointed out, in connection with this question Of
interest rates and prices Of securities; and It 10.
Of course. as pertinent to stock values as to
bonds. As a 3 per cent stock. with possibility
Of becoming q per cent It Ii not outside the
lines Of conservatism to expect such price Tor
Burlington a. indicated above. ~
In reference to the Rock Island bond contract
and its influence on the market. 1t was natural
that the more speculative issues should respond
more promptly than those Of a purely invest
ment character; as for example, the four or fvs
point rise in the Atchson adjustments - com.
pared with about half that In the general A.;
the advance in the NJ. K. & T. seconds, and In
the Missouri Pacific Junior issues The lit
might be considerably extended ~ "a
Sugar had five point drop on Tuesday. b.
fore the declaration Of the regular dividend On
Wednesday. In this 1t may be said to have
sold ex the extra dividend Of indefinite amount
which the Street had declared on the stock
previous to the action Of the directors. Sugef
seems high above 40 with the prospective COM
petition ahead Of the company. but to sell y
short seems to invite q squeeze nine times o Il
Of ten.
The dividend on Northern Pacific preferr'a
was looked forward to with intense interest, ir
tensned by the short postponement OF action
to await Mr.. Morgan's return. The l per cent
declared was for the quarter ending December
31st. This was a judicious move; ~. while 1t
puts the stock on q per cent basis. 1t relieves
the company Of the burden Of paying out this
fiscal year. the full 100000 which per cent
dividends for each Of the four quarters would
entail. BY emitting the dividend for the first
quarter Of the fiscal year It saves $4,000. II
the Northern Pacific earns gross the current
year $25 100000 It can pay out $4,000 In
dividends without trouble.
The recent manipulation Of the stock indi-
Gates that the insiders are there for long pull
In September Mr.. Keene made one Of his rapid
moves In the stock from 50 to 81, after which
Il reacted; but the subsequent slow recovery
which has now placed the stock above,9S shows
smother hand than his. When he handles
stock It 10 by q series Of cavalry charges 1t -
not in his impulsive nature to 80 creeping along
q little more and . little more each day. AZ no
rush was attempted with the stock on the
declaration Of the dividend. It looks 40 II the
programme OF the big moneyed interests which
ara backing Northern Pacific was to push 1t up
gradually widening the market Tor IL and TOT
the bonds. It II useless to try and guess wheu
the grand unloading will come Come II VIII a.
some time, but It don't seem In sight 1t present
It may surprise some people to know that tns
Erie road. on probable earnings OF SSS'OoVVo"
this wear. and allowing 20 per cent working ex-
penses will earn all fixed charges and per
cent on It's first preferred stock. now selling Do
tween 81 and So When Mr.. Morgan gives the
word-but It won't be before he doss-the Eric
securities will have q lively awakening from
their present deadness.
Certain signs about the market handling q
Manhattan. Western Union and chicago ana
Great Western (Which latter is evidently booked
for return to its best summer prices). give
evidence that the same skilful hand Is active IN
Zach Manhattan and Metropolitan Traction
are understood to be under the special patron
age Of the new city authorities.
A'' CUTHBERT MILLS