The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-09-13
OIL, UeAs AND GAS

mont OF the speculation which began its upward
course six weeks ago. when the new Tariff bill
bscame a law. Tho rising tide Of confidence In
the future IL accomplishing Its own fulhlment,
and Is lifting out OF the mud numerous hulks.
which, until lately, had been supposed TO DO
hopolcssly aground on the spot on which they
were left by the catastrophe of 1893. Railroads
which have been paying only small dividends on
the stocks OF the companies owning them, or
no dividends at all, and barely their fixed
charges, have been discovered to DO yalu-
able propettics. Corporations which have been
for years In the hands Of receivers are one by
one emerging into independence, as butterflies
emerge from tho chry sails stage into life. The
extra dividend declared by the Chicago. Mil
NAukce and st. Paul Company on Thursday.
and tho Increased earnings reported by tho
New York Central. the Illinois Central. and
other great lines. have added to the general
cheerfulncss. The atmosphere is radiant with
hope, and the future is rosy.
More conspicuous than tho stocks Of railroad
companies, for a rapid and great advance In
price, have been those Of Industrial corporations,
OF which the STANDARD OIL Trust is q leading
illustration. This concern was launched on the
market in 1885, or twelve years ago, with q
capital OF $40. 900. O00. What its assets were,
what its debts and what lite earnings, the public
was not permitted TO know. Its stock sold at
about 30. and was bought timidly at that price,
by few adventurous investors who took the
word OF tho managers for its value, and were
confirmed In that faith by dividcnds, small
at first but steadily increasing. The 10000
OOO Of capital was soon raised to 800. 900. 900
and over. by q stock dividend, and when, three
or four years ago. tho courts OF Ohio pronounced
the organization illegal. a distribution was COM
menccd OF assets " in liquidation" AZ we'll as Of
large cash dividends. At present the shares of
the trust are selling above S25.
The American Sugar Refining Company's
stock has had not SO large q rise a. that of the
Standard Oil Trust, but one sufficiently striking,
nevertheless. For o long while after tho COM
pany's original formation Its stock sold at about
IS. Then, under hostile decisions by the courts
OF this State and fear Of receiverships for some
Of the concerns most valuable rehneries. tho
price fell nearly to SO. Tho company was soon
thereafter reincorporated In the State Of New
Jersey. and It's capital Of R75, 900. 900 was d.
vided into one-half common stock and one-half
preferred stock. the preferred being entitled to
: per cent. cumulative dividends. Dividends on
the common stock have been ut the rate of IL
por cent. per annum, with occasionally an extra
8 per cent. This stock which, on July /, was
thought to be high ct 127. has since risen to
1877, and the preferred. which for several years
ranged at about par, now sells in the neighbor-
hood Of 100. II it's 2 per cent. cumulative divi-
bends continue long enough to inspire conf
dence In cautious investors. it 10 likely to sell
on a 5 per cent. basis.
The rise in the stocks of the gas companies Of
this city has been both unexpected and large.
When the Consolidated company was first
formed IN 1884, It paid dividends Of z per cent.
per annum. and its shares sold from about par
TO ITO. Then. In 1887, came the act Of the
legislature reducing the price Of gas from S1.75
per 1000 feet to S1.25. causing the dividends to
fall to 3 per cent. per annum, and the stock 70
below 30. To the surprise and chagrin Of tho
enemies Of the company, who had procured the
passage OF the act with the idea that they
would thereby cut the profits on gas making
permanently down TO Q low figure, the reduo-
tiOn in price so increased the consumption OF
gas and ingenuity 90 diminished its cost that tho
dividends on the Consolidated stock rose FIRST
10 5 per cent. per annum. then to o per cont.
and, finally, TO 8 per cent Tho price Of the
stock has advanced in greater proportion. the
latest sales Of 1t having been at near 900. In
like manner. Equitable Gas. which ten years ago
sold at about III. and two years ago ct ESQ. has
Jumped to nearly 300. New York and East
River Gas common. which was given away a. o
bonus to subscribers to the oompany's bonds ct
so. Is now itself ceiling above 90, and the pro
ferred. which was also given away gratis, sells
at about 100. Standard Gas preferred, which
for q long time was unstable at 81. In now In
demand at l55. and the common. which was
supposed to be worthless. brings near'y the
same. Mutual, which was originally given 70
constructors at 80. IL above $50. This rise has
been accomplished in the face Of tho act passed
blythe Legislature last spring. by which the price
Of gas Ii reduced . cents per 1000 feet every
year until in 1901 Il touches q per 1000 feet
Even at this reduced figure the profits of the
business arc supposed TO Justify the market
estimate Of the value of gas stocks. and the
terms of the recently negotiated consolidation
Of the Equitable with the East River Company,
confirm the superstition. Over In Brooklyn, too,
the stock Of the Brooklyn Union Gas Company,
formed out of Q number of little competing com.
panies. which sold in August 1896. ut 30 OF
thereabouts. now sells at 1876.
Other industrial enterprises, of which the
stocks Of q dozen or more arc In the market.
have not met with az good fortune as oil. sugar.
and the various city gas companies. American
Cotton Oil pays dividends on Its preferred
stock. but mono on the common. American
Spirits. which succeeded the old Whiskey Trust,
has not yet paid any dividends at all. Ameri.
can Tobacco dividends on common stock arc ir
rer&'ar. Colorado Fuel and Iron Company ia
suffering from the low price Of both coal and
Iron. General Electric dividends have been sus-
pended for three or four years and their resump.
tion Is not In immediate prospect National
Lead common stock 10 also, ct present,
= non-dividend payer. National Lnseed Oil
stopped dividends In 1895. Tho New York
Biscuit Company has also paid no dividend
lately. The Standard Rope and Irvine Com.
pany. the outcome OF q series Of reorganization
OF the old American Cordage Company which
failed In 1893, has not yet achieved success
United Leather preferred stock pays regular
dividends, but the common 10 OF uncertain and
nuctuat ng value. United States Rubber has
lately reduced tho dividends on the preferred,
and those of the common are anything but Ger.
tain. OF all these concerns the stocks rise and
fall in accordance with their prospects. but
none OF them can be said TO DO popular with
conservative investors.
On the other hand. there IL q large number Of
Industrial corporations of which II 10 not gener
ally known whether they are profitable or not
and the stocks Of which have no regular market
value because they are not publicly bought and
sold In this market. The principal of these are