The Providence news. (Providence [R.I.]) 1891-1906, 1897-01-07
: ''''' ''' F F!ae9s!al !! World.
IN THE
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The stock market opened strong with an
immediate tend, ncy toward higher prices.
In London tho market opened buoyant, with
an advance Of y pr cent. Louisville leading.
Bank OF England rate Is unchanged a per
cent, but money is very easy ON the street.
being offered at 2Is per cent. Foreign houses
purchased fully 1900 shares OF the active
stocks for London account today.
TIE most important feature In the market
yesterday was the reduction Of the dividend
OF Delaware a. Hudson TO per cent. and this
is most freely commented upon today.
special dispatch TO Richardson a. Clark states
that there is sharp division in the board OF
directors on the dividend question and that IT
is not true, ,Ias stated, that the Vanderbilt in
terests were responsible for the reduction,
but that OH the contrary. their influence
was cast in the opposite direction
wortleys comment upon this matter is that
the reduc ion did not have much effect upon
the rest of the market, because it was more
or less exp cted and because the action of the
directors was, on the whole approved. The
street Is beginning to recognize that IL is more
of a bsar argument on the stock IL dividends
are paid that are not earned than If the con-
ssrvative pjlicy of reducing the dividend
when necessary is pursued.
| In regard TO this Joseph says: Delaware
| a. Hudson as a 5 per cent. dividend payer Is
worth l0s or thereabouts in a cheap money
| market. The stock in all probability Will
| settle around these figures"
j. B. Bache g. Co., in advces to Il. j. Knight
| g. Co., say: "Whils some people will argue
| that PER cent stock is only worth par, we
| do not think that IL will hold good with Della
/ ware a. Hudson, as the bonded debt OF this
| road is very small and tho management Is In
very conservative hands. The stock Is, how
ever, likely to go somewhat lower"
Mason, however, considers Delaware g. Hud'
son first-class purchase. In his letter to G.
| Franklin Nugcnt a. Co. he says: ut may go
down temporarily, hut at the price other first
! class investment stocks sell at, IL IL cheap
| arJnnd present prices.
In r.lation to the possibility that dividend
| will soon be declared on Omaha, Dow, Jones
| a. Co. say that the attitude Of the company $
| directors is in favor of a reasonable dividend
because he company has actually earned 1t
| and has the money on hand with which TO pay
| IT, The trend of directors opinion Is now
| strongly in favor of a = per cent dividend
as representing the result Of the past year,
! and :his would leave Surplus TO be carried
| forward OF somewhat over l per cent. They
| sre not willing TO make a semi-annual divi-
| dend, are more conservative at the moment
| in view OF the fact that the company Is en-
tering the dividend list for the first time, but
there is no doubt but that at least per cent.
can now toe paid annually ON the stock and
still leave safe surplus.
There is also rum or to The effect that a
dividend is soon TO be paid on the Chesapeake
a. Ohio common. This is scarcely credited,
although il has had tendency to increase
tine value of the stock. II is known, however,
that the DAD Is doing better than for some
time past and will probably be able TO show
per cent. earned on the common by the esd
of the fiscal year.
Leather preferred took a material drop to-
day, as the more conservative traders have
little confidence in this line of securities. II
is believed, howeve-, that outside conditions
are changing for the better ma that the
slightest Improvement in general business
will, meet with n quick response in the market.
The report of Texas Pacific for the fourth
week shows an Incrsas Of Ss206, and New
York Central's statement for the month OF
| December shows Gecre ise of SjS20OJ.
, oney on call in New York easy ut II:
per cent Prime mercantile paper, 3a144la
Sterling Exchange strong, with actual busi
ness in bankers bills at ASA for demand and
$50. for 90 days. Posted rates, i.Sil2al.S x
and Isi1sa4 So Commercial bills, 4.S.s4a.S3
Silver certificates, 6is4nG5I.; no sales. BaI
silver, 81 SIS. Mexican dollars, 50}5. Govern
mtnt bonds firm.