New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-09-04
finanrial.
The Financial World.


n.ent referred to was the elimination. was
| calculated TO make the average trader stop and
think how long it would be before he ran against
tight money Trading Stacked off perceptbly on
Monday the market became Irregular. and some
quick declines recorded This continued
for day or two and then the rank and file
OF he Street gathered courage when IL was an
nounced that Lazard Freres were importing
gold 1t was not much. but every one knows
that when this firm begins either TO export or
import gold. It usually marks the beginning Of
the seasons movement. There was some stren-
ing Of the call money rate the week psa-
crossed but six months money is abundant a.
4 per cent and without doubt the big men who
are running this market have made their ar.
rangements with view to gold imports as the
state Of tine money market requires them They
would scarcely be so deep in speculation as they
evidently are without looking out for so obvious
a danger as a disturbed money market 1t will.
however, be a considerable relief when the
Treasury distributes those bonds
The remark became general the latter part OF
the week that IL was Morgan market This
because the speculation ran most towards those
stocks in which that house was known to be
most deeply Interested. principally the Northern
Pacifcs. The preferred made record price in
going above 70. 1t may he remembered that last
year Mr.. Hill told number Of his friends that
he expected to get 80 for his stock II looked
then like rather altitudinous price. Here II
is however, close To- the figure which he
named and presumably at that at which he was
willing to take profits. The point is now that
the stock will go to ~ or 90 Mr.. Hill also
urged his friends TO buy the common then sell
ing very close to 30. He insisted there would be
more speculation In this than In the preferred
Il sold above II the other day, but dropped Of
somewhat when 1t was asserted that the COM
pany would reserve $3,OO0OO0 for a guarantee
dividend fund for the preferred stock.
This was announced In the preliminary report
OF the company for the fiscal year given out at
the meeting Friday. The figures Of the report
are calculated TO create an impression The
gross earnings OF the year given at S23,-
$4,000 II this were the Northwest Company
we should expect TO see the working expenses
about SO per cent. givi ig a net something over
$S,1O0.0O0: but the Northern Pacific is not run
that way. The net earnings were Sl2,Js4.00O;
leaving about A. per cent for working expenses
This is a very remarkable showing. II justifes
the predictions made that when Mr.. Hills
economics were applied 10 the Northern Pacific
system. surprising results would appear
They do From this net some deductions are
made for taxes. equipment replacement. etc.
and on the other hand. there are additions from
interest and dividends received. making the net
available revenue for the year. S11,9iL0O; or
call il in round numbers Sl2 100000 on less
than $24,OO00oO gross earnings. this must bs
conceded to be an exhibit. rarely II ever paral-
leled In railroad reports-outside OF those made
by Mr.. Hill. II stamps Mr.. Hill as the most re-
markable railroad manager OF his time. Interest
on the bonds for the year amounts to little
over 100000 After paving 100000 in dlvi-
dends on the preferred stock. there remains a
surplus OF 50 600: and to this is added
surplus from the previous year making together
s33S7 900 OF this sum there has been appro-
priated S30OOOOO for a guarantee fund for the
preferred stock.
With these figures before US and remembering
that the h headquarters for the speculation in the
stock are at the corner OF Broad and Wall
Streets. II is easy to account for the rise Of the
Northern Pacific stocks since the company was
reorganzed less than two years ago II is fair
Ia surmise that the current fiscal year VIII be
devoted to making the cormon stock dividend
peyer.
The granger stocks have been comparatively
neglected through the week. and sold off slightly
II is rumored that the scheme for he refundins
Of the Burlington debt has been worked over
and Is near completion. This Is the rumor, and
az rumor IL is here stated. In confirmation II
Is asserted that houses which generally
active buyers Of any stock when a big financial
scheme IS under way affecting the securities of
the company. have been buying Burlington
lately.
Baltimore & Ohio stock first assessment paid
has had so lively an advance as 10 cause some
surprise There are SO more 10 pay on the
stock but the buyer now gets Cor this the full
I'm iS
assessment. The preferred is quoted about &C.
50 much money has been made OF late in buy
ing the cheap common stocks OF reorganized
companies, Northern Pacific and Union Pa
cfc, that the buying OF -. & .. common may
perhaps be accounted for on that ground. That
the preferred stock will he a dividend payer
from the start We have the best sort OF author
ity for saying. The prospect for the common Is
well. fairly speculative. The per cent bonds,
il may be reiterated. will sell at par. They are
perfectly secure Of their interest The earnings
OF the road at its worst guarantees that The
bonds are quoted about 3
1t is stated that the full per cent on the
Atchson adjustment bonds will shortly he de-
cared. The company has moro than earned IT,
and on very high ratio OF working expenses.
Good buying OF the Union Pacific stocks has
been OF the prominent features OF the weeks
speculation. me common STOCK, II IN edu' wa"
sell higher The preferred is a fixed per cent
stock and the common will get the surplus earn
lngs. after a sufficient reserve has been set
aside to make the preferred dividends secure.
II must he distinctly understood that the COM
mon stock IL purely speculative. The interest
OF the reorganizers was in the bonds and the
preferred stock. Others have come in as buy
ers Of the common; but they are strons people
and such as usually make no mistake In their
speculatons They regard the reorganized Union
Pacific as one OF the most promising properties
in the country.
The Texas Pacific securities have been qule!