New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-12-19
financial.
r3rS|0-@0O
The Financial World.

Tie stock market started the week III so.
bull shape, and went rising cheerfuily VIII"
Sugar and Burlington in the lead. until "eo"eS
day afternoon; when it suddenly ran against =
small furry in the money market. and got .
set back from which 1t had not wholly re-
covered yesterday. The furry was so insignia
cant compared with its effectsthe call rate
going higher than per cent-that the incl
dent would be difficult to understand did we
rot bear in mind that securities have been
rising much through the influence Of cheap
money Of large railroad earnings When,
therefore. 1t seemed that one Of these two main
props of speculation was about to be knocked
from under the market. there was a rush by
the rank and file Of the traders TO sell out.
Having sold out some OF the more prominent
Of them took the bear side and have been try.
ing 10 hammer the market since insisting that
money will he inconvenentIy tight before the
first week in January.
AS to what danger there was In this drec-
tion II any--tor a disturbed money market
would certainly mean lower stock market
while II lasted--one Of the big bankers was in
qured Of Thursday morning His opinion on
the subject would be OF weight at any time.
but at this time more than ordinary as his ar
rangement OF tn. Union Pacific payments en-
abed him TO speak ex-cathedra. He smiled at
the question. I'm my judgment" said he, you
saw yesterday afternoon all the disturbance
you will in the money market" He then
briefly pointed out the various factors making
for continued ease in money, and summed up
the whole with the remark: The strength OF
the situation is the weakness in exchange" At
the time Of this conversation lenders on call
we're finding It hard work to loan at per cent,
and have found IT harder since The majority
Of people who have money TO lend are not.
however particularly pleased with this state OF
affairs They would prefer to be able to get
more profitable employment for their funds than
they have been able to do for long time past.
1t is an odd situation when Chicago and New
York banks are lending money In London and
Berlin because they get better rates for 1t
there than on this side.
While the market was rising the first part OF
the week. Burlington led the granger group Of
stocks. 1t rose above par-1OOS. The best
Price Of the stock in the summer boom culmi-
mating in September, 1924 and on tho
subsequent recession Of the market 1t broke NJ.
Burlington has been the first stock In this
group to work back 10 within two per cent OF
its best price Of the year. TIE others may get
back also in a short while, but when they do
Burlington will probably have gone we'll above
its first high water mark. The earnings OF the
property promise this. The expectation OF the
certain increase in dividend may be said to en-
sure it, Leading bulls on the stock say THAI
barring political disturbance (meaning by that
some international complication OF the Vene-
zuela ORDER Burlington will sell between Ito
and 100 before next March. matter what
Temporary fluctuations II may have between
| times.
The Northern Pacific pool managers were
| careful 10 avoid making any furry in the STOCK
on the declaration Of the dividend. but they lost
| little time afterwards in broadening the market
| for Il; and for several days the trading In the
stock around 81 became very large Some
stock was probably sold. as the price receded
below 60 after this operation. They are IN Tor
| a long pull howeve'. an evidently bought back
! their stock at the decline. People In a position
to speak with some authority, assert that
| Northern Pacific preferred will become even
| bigger gambling stock than Sugar. The peculiar
| provision in the supplementary, OF mooiheo
agreement of last December. with respect TO
| the payment Of dividends. gives a powerfui
| lever to work with
Here is al interesting comparison Omaha
| common is a minority stock; that Is. the ma
iority OF It is owned by the Northwestern. PAN
| handle" common Is a minority stock, the ma
iority is owned by the Pennsylvania. The fiscal
years OF both companies are coincldent with
the calendar year. The Panhandle will earn
! this wear gross S16 900: the Omaha. some
| thing owe SS4OOOOO. The Panhandle requires
| for
Interest bonds.
| Little Miami and other rentals: ........... IoUW
| Four per cent on preferred stock......... s2,VU
Three per cent on common stock........... Io"U
Total go per cent Of gross earnings. $4,000
Panhandle common is selling about IS. Omaha
| requires for
seven per cent on preferred stock......... ;ssSS
Total ga per cent OF gross earnings)s ~ 200
Omaha common sells about 79v The COM
| parison between the two properties could be
| extended further, showing the extraordinary
| discrepancy between the prices OF the two
| stocks as compared with the earnings, and in
| terest and dividend requirements OF the TWO
companies. Equality between them Will GER
| tainly be reached some day. Panhandle Will
rise as quickly as Omaha did.
When Mr.. Morgan gets his bull boots on. IL
| may be we'll to keep In mind that Erie VIII
earn this fiscal year. about S33.OO0OOO gross;
which on 20 per cent working expenses. will
show per cent dividend earned on Erie hrst