New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-06-26
financial.
The Financial World.

stock running 10. or dropping away. while the
balance Of the list hung stationary. Leaving
out Rock Island. which is subject at this tr,e
n special influences. the granger stocks seem
likely n continue dull They ara TOO high to
begin an upward movement in them now when
The probabilities are ;hat traffic returns will not
make any favorable comparisons with last year.
Atou. this time a wear ago. the large movement
az wheat 70 market under the stimulus OF
rising prices for the grain with big crop In
prospect caused the earnings Of the Western
roads 70 60 forward by leaps and bounds Gem.
parison will henceforth be made with these phe-
nomenal returns. and the LAST two reported
weeks Of the - Paul road tell how the com.
parison is likely 70 run From dwtadling in
crease II has gone 10 a decrease Considering
that farmers are A. this season generally TOO
busy in the fields 20 be able TO attend to fer.
warding grain and that the Letter collapse d..
prived them Of the incentive Of very high prices,
II seams reasonable 10 expect that grain de-.
liveries will run lighr for a time. and hencs
the decrease reported bv the ST Paul for the
last week will be repeated by that and other
roads also We NAV Of course. he mistaken
about this n NAV be that increase OF general
business will make up the falling on IN the
grain tratfic But tni. is question; ard largo
operator is scarcely likely 70 begin buying a
linz If thase stocks now when he runs the
chance If having his efforts TO sell them profit
ably later entirely frustrated the publication Of
decreasing earnings. Investment purchases,
and money at ~ per cent. will support these
stocks: but there is no room at this level for .
big speculative move in them. Not on the out.
look as it appears at present
There is a. considerable speculative margin
still remaining in stocks like the Northern Pa.
cifcs the Union Pscifics, or in g. stock like
Brooklyn Traction The properties are still in
the stage Of growth under new conditions and
the big operator who swings lines large enough
70 REQUIRE plenty of space has still room enough
70 make a turn in them The Flower people
have been buying Brooklyn Traction on It's
reaction after the recent quick squirt; and they
talk more confidently than ever about Us future.
The summer season is the season OF big earnings
with this suburban trolley property; and The
earnings are increasing so much that Governor
Flower is quoted as predicting dividend before
the year Is out. and price in the sos for he
stock quite speedily
Western Union is likely 70 be more active N
the future than II has been. As part OF the
e. o reorganization scheme. the big block
Of telegraph stock which was one OF the assets
OF that company, has been removed by sale
from the menacing position It held Every one
knew that some time or other that block was
coming on the market but Just how or when
was uncertain: and the operator or operations
who undertook TO make a bull campaign in
Western Union had the dsagrecable conscious
ness that II might come out him. and Just
when he least wanted II Speculative operations
in Western Union therefore. have been rather
tirnid in character Now that this block u
placed safely. and another large block which
was for sale has also been disposed Of West
ern Union will probably become more OF a
favorite in the trading and is likely TO move
between SO and par. according 10 the temper
Of the general market
Investors rather than spectators will be IN
terested in the Baltimore Ohio reorganiza.
ton plan r. has been drawn up on conserva-
tive lines There are two classes Of bonds, the
81, prior Hens S700O0OOO in amount. calling for
interest charges Of So 100000 and the $4,000
0no per cents, coming after the above. ard
calling for 50 900 600 interest charges. Tha,
these bonds are safe may be inferred from the
fact that while the combined charges are no
more than 81 10000 the net earnings Of the
road are conservatively calculated al something
in EXCESS n S7.5oo0oo Bonds so secured are in
no doubt. and unquestlonably they will sell At
prices representing this degree OF safety
Possibly the speculator may be more concerned
IN the preferred and common stocks. OF the
former there ara $40 100000. entitled 70 per
, cent before the common can get anything Tho
common stock may he dismissed from consider
alton. except a. a speculative among the cheap
things ~ the list. but the preferred Is entitled
to more respect After the 81 10000 charges
referred above. there come 81 100000 Of In
terest charges taxes. and rentals. Surplus over
this is available for dividends on the preferred
Taking the total IF charges ahead ~ the pre-
farred stock ms bout So $500 II will be seen
that considerable surplus remains II the net
earnings reach the conservative estimate. based
on past business Of 81 100000 the surplus for
dividends would be S1.25O0OO You can say"
said one # the chief mon in the reorganization.
that The preferred stock Will he dividend
payer from, the start"
In the industrial group. Sugar shows down.
ward tendency. easily accounted FOR by the
nearer approach ~ the time when the problem
of dealing with and formidable opposi'
/ non concerns must he faced on the other
hand Tobacco mas been advancing. every re-
/ action in II being followed by rally which
has sent the price higher than It was before
The stock now paws s per cent but the earn
inss are. by the insiders claimed 70 be nearly
double this They say. also that the opposition
/ the COMPANY has is OF practical moment
for u has always been in state Of opposition
and has made rs money right along Just the
same You Will sec Tobacco sell very high
said one Of the important mon IN II vesterday.
You will see II sell ver'' much higher than
you think is possible II should nor Ne forgotten
that az the last election of directors certain peo-
pie we're elected Who may be counted on not 10
neglect the market interests Of the stock TIE
way II has moved for the past two DAYS Is
foretas'e
Speculaton generally is likely 10 be more
active in the industrials for time than IN Inc
big railroad stocks for causes indicated aooVe'
and some ndustrials which have heretofore been
rather in the background are likely 10 come
/ frru There several Of these. put