New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-06-12
Financial.
The Financial World.

all over the country and as payment can n.
made In any form Of money, It will go through
without causing ripple in the loan or invest.
ment market. AS an influence on speculation. 4,
is scarcely worth considering. The tax feature,
Of the bill of more moment The two doll.,
tax on the sale Of every hundred shares OF stoct
| is a sharp reminder that you can't have wa,
with even poor and played out country like
Spain without paying for the fun.
On its military side the war has become merely
| a spectacular or intellectual excitement to the
average trader. or to the capitalist ana investor
and therefore Of little influence on the stock mar
ket The inevitable end is recognized and ex.
pected On its financial side, it Is important:
since 1t brings increased taxes. and Of a very
direct incidence and legislation which affects
the national finances. A bad impression was
created in the Street by the report Of the con.
ference committee, agreeing to a compromise on
the seigniorage question. The provision 4,
agreed on is not In itself Of much importance
but It was felt to be step in the wrong dlrec.
ton: and as such, likely to make rouble later
The market however, was in a bull fu'ore al the
/ time the announcement made, and 1t had
little effect Conservative people shook the,
heads but with the general run there was only
talk about the Flower stocks, about the move.
ments Of Sugar and the continuous Increase IN
railroad earnings. report at one time was cur.
rent when the market was strongest on Friday
that Spain suing for peace. but II had no
basis beyond vague reports and 1t is not the
Spanish way. 1t may just as well be recognized
moreover, that peace will not bring much II any
let up In taxation, for considerable time at
least: since result Of the war VIII be such
a permanent increase in our army and navy to
hold and protect our new possessions, as will
make heavy demands Oh the national purse.
The Flower stocks have set the pace for the
market through the week. A characteristic d. p
/ In Sugar Of ten points in about two days far
to do more than show the inherent strength Of
the bull side, In the way the market resisted Tie
depressing influence. Around 49, sugar turned
70 60 up and the balance Of the list promptly
responded On this move. Brooklyn Traction
took the lead. and ran up point by point until
Il crossed 81 The ; per cent bonds Of the
company also advanced smartly. Traction will
probably take a rest about present figures which
would only be natural after so rapid an advance.
The Flower people say they have seldom handled
a stock which acted so satisfactorily after II had
once been started. The market took the stock
and ran away with 1t.
They are still talking with great confidence in
respect to Rock Island. and insist II will sell
close TO where IT is now ex the dividend. They
say that no one need fear to buy at current
figures The stock will surely return them good
profits The selling that was done on the dec
laration Of the dividend was by the rank and
file who always join in when something good Is
coming and sell when the thing is announced
The big holders have not sold.
Chicago e. Eastern Illinois and Minnesota
Iron are bull cards which Flower & Co. are hold
ing in reserve and will play later at the proper
time There seems to be nothing in Chicago Gas
at present.
ST. Paul and Burlington are good to buy on On
reactions. since the earnings Of these roads next
fiscal year cannot fail to exceed those Of the
year now closing Western prospects are IS
rosy az in 1850. when big crops with high prices
for them. and an immense export trade put the
western farmer in high feather. ard gave US
the biggest bull market ever known up that
time. In volume Of business. however, those
markets were small TO those which promise n
the future.
The dividend OF 1 per cent on Northern Pacific
common, which much talked about
failed to appear when the time came. II prob
ably served its purpose. however. marketwise.
Some disappointment has been caused by the
announced policy Of the Union Pacific managers
in respect 10 the payment OF dividends on to
preferred stock. AS stated in this column last
week II Is the intent TO make the dividends
semi annual at the rate OF per cent the first
dividend TO be paid October next. An increase
Of this rate may be confidently looked for later
but the conservative element In the directorate
which means the Vanderbilt Northwest party
is convinced that the proper course 10 pursue
at the start Is which will recommend itself
TO conservative investors This policy has been
determined on after mature delberatlon. and Is
~. hot
earnings Of the company running greatly
in excess Of this rate has not been overlooked
II is hoped and expected that they vii! continue
to do SO The road is earning at the rate o.
per cent on the preferred stock ana > on the
common: but the managers referred 10 feel that
the right course is to accumulate such surplus
that when dividends are once begun. the stock
holder may look for them afterwards with the
same certainty that the bondholder looks for MS
interest.
To assure this II Is necessary to have TO-
serve fund against rainy days and excess earn
ings at the start may be wisely lad ASIDE '"'
was the policy which built up the Lake shore,
and has built up the Northwest. ana IL VIII ou.u
up the Union Pacific in the same way -"
managers are convinced that though ,heFe n'a'
be some temporary disappointment u'e 'oo
pursued will be recognized as the risnt one anu
be acquiesced in by all interests
The 4 per cent bonds Of the company are !"
good public demand They will sell at par ca
the July interest.
The rise in American Spirits stock lately Is du'
to purchases by people who have been ihsiu
mental in organizing the new company WHY"
takes in all the distilleries not owned oy Wv
American Company The formation CT TINS rs"
company has been announced. Its STOCK mas s,
been all UNDERWATER. The two companies WI"
work In harmony. Their management WI" "
for all practical purposes Identical The COM
retition which has been destructive to d" ~
terests will cease. The business OF tie TWO eo",
poIiv distip In fact tGentSd~