New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-06-05
financial.
The Financial World.

in the official confirmation Of the reports thar
the Spanish fleet had been absolutely located in
Santiago harbor. This was enough. Strong buy.
, ing had already started in London, the most
urgent demand being for st. Paul Our market
opened high, aith Rock Island up rs over Sat.
urday's close: and the forward movement Of the
list continued without much set back till Friday
afternoon. when the Senate vote to coin the
seisnorage caused sudden scramble to sell
II was after the close Of business that the vote
adopting the bond issue was had. This partially
Offset the other, and yesterday the market was
strong again. London did not seem to be
alarmed as prices were all up there yesterday
morning 1t is not expected that the scignoraxe
clause will get through conference committee.
Some surprise was expressed at the Rock
Island dividend being 10 per cent in stock while
the total OF the company's stock outstanding
would not be raised above the authorized 500.
| 100000. This has been explained. The company
had in It's treasury stock to the amount Of 3d.
S44 200 par value; the other lib shares neces.
sary to fill out the 10 per cent, were bought By
the company when the stock was low in the
SOs. Rock Island is now a per cent stock but
the earnings for the fiscal year will considerably
exceed this In the current fiscal year Of the
company beginning April 1sD the net earnings
are expected to be at the rate Of per cent or
more.
In the usual way. the stock declined after the
announcement Of the dividend. But it Is not
likely the insiders have sold much. The rank
and file who come failing in after IT becomes
current news that something extra Is pro-
| nosed have done the bulk OF the selling. The
! managers. who know what the road is earning,
and are best posted on its prospects, insist that
! the stock will sell we'll above par ex the dvl.
dend.
Chicago Gas was attacked by one Of the Gus.
tomary "sandbagging" resolutions IN the Chi
cago Common Council. to tax all gas meters 81
| each The resolution simply aimed at the
stock market end 1t had some effect. coming at
a time when other and more potent causes We're
AT work. making reaction in the market The
| friends OF the company, however may be ex-
| pected 10 take care Of the stock They have
| shown themselves strong enough for IT when
ever they choose
Another Of the Flower stocks. Chicago and
Eastern Illinois common, has been promoted
10 the dividend raging list a seni-annual divi.
dend OF 21b per cent having been declared. This
| marks the building up of the property which
has been going on for years. and is now begin.
ming 10 bear fruits. The preferred stock. which
"a and for long time has been paying divi-
dends Of & per cent sells about 100. and Will
| probably 60 10 100 The common will follow IT
up and doubtless score ten TO twelve point
advance.
The new management Of the Union Pacific
Company will conduct the financial department
OF the corporation on the same conservative INES
as distinguish the management OF the North
west with which company the Union Paciho
is SO closely allied. There will be no fireworks
II is intended that when the company begins
paying dividends the preferred stock. the
tfnO lam
with as much certainty as the bondhoder counts
on getting his interest. To this end ii Will be
the policy OF the managers TO accumulate as large
a surplus as possible 10 provide against lean
periods The rumors current in the Street that
a dividend will be paid in July are erroneous.
Dividends on the preferred stock Will begin IN
October, by which time the Union PACING system
as whole will have been in the possession OF
the new company six months. The dividends VIII
not be quarterly, and will not he at the rate OF
per cent They will be seni-annual and VIII
begin at the rate Of per cent.
The company could pay 4. but for the reasons
stated above II will not be done. After the july
payments are provided for. there VIII remain IN
the treasury something over SiWOooo cash.
The road is earning at this time, according to
returns made up on Friday last per cent on
the preferred stock and . per cent on the COM
mon.
The 4 per cent bonds OF the company, S9o'Vo'-
OOO IN amount will in the future. sell at par
ex the July interest. They are now quoted
about 96.
IL will naturally appear from the above tha'
the managers OF the new Union Pacific desire
to make the stock and bonds OF the company
less a speculative than an investment security
following in this way the lead OF the Northwest
management II suffces 10 say, In respect 10 tne
latter. that the common stock OF the Northwest
sells about 1913 while still paying dividends OF
only per cent but showing earnings or nearly
double that
Referring to bonds. II may be added that Inc
Atchison Is will certainly sell at the same price
as the Union Pacific As but they may possioly
be longer In getting there Surprising the Atom.
son Company earns gross S4OOCOOOo this hsca'
year. there will be net earnings large enough 10
provide for interest on the LIST mortgage. on the
adjustments at the rate OF 4 per cent, and sur
plus for the preferred stock.
! For a speculative purchase the preferred ano
common stock OF Atchison offer as good chances
! for profit any OF the low priced shares on 'n'
| list The buying OF both by the Flower peop's
has been noted within the past few days uo''
ernor Flower does not say much about II, except
that he considers the prospects Of the properly
warrant buying the stocks at this time, and ne Is
doing it. We may therefore expect TO see then'
keep we'll TO the front I'm the general up"a'"
| movement OF the market.
| II IL stated and the action OF the stock inol.
Gates IT, that the Northern Pacific managers WI"
declare a dividend OF per cent on the cothn'n
the coming week. There seems TO be eoo.
deal Of steam In the Hill Morgan management
OF Northern Pacific. Mr.. Morgan by the "a',
is said to be talking bushly on his speeA'
stocks. for the first time since he returned noA
| Europe just before the war
The reorganization plan OF the Baltimore ~
| Ohio will be made public within the next WV
weeks The outbreak Of war delayed IT,