New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-08-07
finanrial
The Financial World.

The rains followed the peace proposals; ana
the latter would not have averted very ragged
market unless the former had come The stua.
ton was that Nebraska and Kansas Vera
threatened with a disastrous crop failure. which
couId rot have failed to have seriously cut down
railroad earnings. In the nick Of time. heavy
and continuous rains fell all over Nebraska ana
over the larger part of Kansas. This changed
the situation at once. Operators who had been
selling their railroad stocks started to buy them
hack Others who had refrained from buying
seIt encouraged to buy. Hence the granger
stocks which had threatened to make the mar.
ket ragged. became strong with considerable
doing in them.
r. is probable that Kansas has been hun
somewhat: but Nebraska and Iowa are all right
This accounts for c., B. & O. leading the up.
ward movement in the grangers
With no large damage DONE and what there
Ia canabIe of compensation by increased west
hound trade the western systems should make
90 large gross earnings the current fiscal year
"a for that lust closed. They may make larger.
but II they don't. there VIII be nothing 10 CON-
plain Of For example-the Atchison closed up
its fiscal year with over S33,VVo,VOO gross,
ooa,nst something over $33 100000 last year Its
income from operation Is close 10 s9'UOoOOO, q
compared with S63O0O00 last year. This seems
to make the adjustment bonds secure enoughpf
their per cent and the LIST As cannot De great
while now before they get to par.
The Union Pacific will be able TO make show
ing upon which the per cent dividend to b
paid on the preferred stock VIII look extremely
conservative-whch 1t is the intention OF the
managers 1t shall be. The per cent frsts.
which It has been said here would sell ex their
Ju,v coupon at par, will probably cross par
about the middle OF the month
Attention was first directed In this column
last week to the new Baltimore and Ohio ~
prior liens and the per cents. Both have ad-
vanced In price since then. and both will go
higher. The total amount OF interest both
Glasses of bonds call for Is only S4,45OOO0.
which is so greatly within the earning power
OF the reorganized company. that the bonds are
absolutely secure Of their interest. II the b. &
n comnanv cannot earn net that amount It u
difficult to tell what railroad bond Is secure
The 3l5s are Just as good bond as the Lake
Shore 31bs This can be said on the highest
pert authority and certainly an authority
which Is not interested in disparaging the Lake
Shores. These 31as appeal more TO the investor
nure and simple than to the speculative buyer.
They will sell at par and above. Inc IS, coming
after them, have more OF speculative element
in them. as pointed out here last week; when
It was said that they would probably go to %
rather quickly; but after would creep up more
slowly to par
Last Saturday they were quoted at s9's and
yesterday at 92.
The Industrial stocks are the ideal for inc
speculator, while the investor who has bought
tudicously and held on has had bigger returns
on his money of late years than he could POSI-
bly, have obtained in any other classes OF Sc
curities on the market. Take IT all IN all the
dividend returns of the Industrial stocks during
the past six or seven years have oeen remark
able In their amount; and the more remarKsoe
in that these years have been those OF extraor-
binary commercial depression. Now II THESE
various companies have been able to pay sood
dividends through times so unpropltious CUM
mercially. the prospect is that they VIII con-
Time and Increase them In the years mmedl-
ately before US, when the soundest hnahciers
we have predict an era of industrial and COM
mercial expansion such this country has not
witnessed for generation Preferred stocks OF
the industrials will sell higher than ever they
have. and will be held in increasing amount for
Investment pure and simple. Common stocks
which have not been dividend payers Will be-
come SUCH and those that are dividend payers
NOW will increase their dividends. Occasion
was taken lately to indicate among the indus
trials. that the prospects were good for an ad-
vance In Rubber preferred and common II
needs only to add that since then the preferred
has risen from below 90 to par. and the common
from the Dos 70 above 40.
The character OF yesterdays market renec'eu
clearly the sentiment of confidence which pre-
walls as 70 the future. Not only was the de-
rnand for stocks extremely good, but there was
no disposition TO take profits on the advance
and final prices were the highest OF the week.
Bonds were also sought at advancing figures
News as TO peace negotiations indicated that
Spain had finally accepted our propositions. ana
that the end of the war was within measuraole
distance With bountiful crops promised ana
peace restored the outlook for a contnueu
period Of prosperity seems TO be assured. Ihers
IS a plethora OF money IN the country. funds De-
ing almost unloanable the Government . per
cents selling above 10J. Nevertheless we have
had the unusual spectacle OF gold being IMPORT
ed in the face OF these conditions with lh'
probability that more will come in the near fut-
ure. Everything indicates big bull market
this fall and while there may and probably
will. be reactions purchases OF securities at tho
present time, II held. will certainly show large
profits before the end OF the year. ". II. r.
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