New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-08-21
financial.
The Financial World.

has no valid ground Of being. II the incre.
dividends. prospective and actual is not h..s.
on present earnings and the sure expectatio.
an enormous expansion OF trade. then the ~
ers Of securities at present prices are In A..
and will pay the heavy cost of It, But thev =.
men whose success has come from their sae,c,.
in reading the future. They are not likely "A 4,
mistaken now, when the signs are plain enor.,
for men Of only ordinary acumen to read. A..
hence it seems safe enough to follow the =,
knowedged leaders The event Of the past Val.
was the increase in the dividend Of the Burtrs
ton Company from , to & per cent. Ithm
than doubtful II it would have been made h,s
not the rains come In time to save the N.
braska and Kansas crops. The action OF N.
Burlington directors. therefore. means mo,.
than appears on the surface 1t means ,bs,
confidence that the present rate Of earnings "a,
not only be maintained. but increased and a,
this confidence is necessarily based on gens-,,
conditions which affect other roads beside tbs,,
own II follows that the increased dividend ia =.
hill argument on all the granger proper,is.
Later on. we shall probably see Burlington stoct
selling where Northwest does now; that is. he.
tween 1870 and 40, and nearer the latter hgurs
than the former.
III Directors
contemplated raising the rate. and some hint q,
this was given here; but the reports Of severe
drouth made the matter doubtful. In the nick O,
time came the rains. and the situation changed
at once. Operators who had sold out their stock
bought it back. and others who had been hang.
ing back no longer hesltated Governor Flower
and his following were among the latter. They
bought principally their own specially. Rock
The buying Of the latter stock on Friday BECAME
large and conspicuous. About the first Of the
month 81. Paul vas selling around par II
crept up under the operation Of quiet buying
orders until on Friday morning II was 100 Be.
fore the close on the same day ii over ll2
The buying in large amounts and urgent
The Street Immediately came 70 the conclusion
that though the time for formally declaring the
dividend was still three or four weeks Of he
big insiders had Informally come 10 a concusoa
to raise the rate. 1t is said that Morgan Co
have been the principal buyers. and this is prob.
ably true We remember that they were the big
buyers before the last raise. from % per cent
The Pacific coast stocks have not been spe-
claly prominent during the week FOR various
reasons. but it is well to bear in mind that the
EXPANSION Of trade I'm the next Few years will be
greater on the Pacific coast than in any other
section II the country. Aftor the close Of the
civil War the great expansion was between the
Mississippi and TIE Rocky Mountains-the period
when our granger road systems now now
them came into being. and the Union Pacific
was completed. All roads tributary 70 the Pa
ciic coast will enjoy a big development In the
era before us II will take in The Southwest as
well az the Northwest Probably the Kloniks
will come 70 the front again. now that the war
has closed There must be an outlet for the al.
venturous spirits which a large and vire popu-
lation Ike ours produces and when there is no
war 10 draw them OF. the dangers and possible
wealth Of the Alaskan wilderness again assert
| their charms.
Among the securities which have the word
Pacific attached to them the Texas Pacific hasa
place. and place destined 10 be more conspcu-
Gus than il has been. Although the payment OF
a coupon on the Texas Pacific seconds did nor
come at the time anticipated 0or certain reasons
no, connected with earnings. yet no one who
took the hint to buy these at time 1t was
! given in this column has had reason 10 regret H.
! for they were then selling about 80 and are nov
! about - They may be 80 or To- before 'ae
| close Of the year The stock Is selling around
this within the next six months i, Will dlsap'
/ point a good many people who are usually eA'
cellent judges OF market values. The nrst moN'
/ gage bonds Of the company sold AZ :" or osO"
/ for A long time despite the repeated arguments
/ u bond experts thai they were worth par a.
/ least But they are quoted We'll above par now
Apropos II bonds one may point out that ne
/ Union Pacific Is are selling within point OF tne
/ figure it was said they would - 20 ex the july
/ coupon. viz. par. II may be added that the new
I pcr cents ~ the Baltimore and ohio. quo'ea
/ around -. Will also sell At par They are sd''
/ bond "a any one who VIII take the trouble "
/ look into the matter will easily see. The earn.
! lnrs Of the b. a. -. road amply take care o.
/ these bonds and Of the 3i.s which come ie'0.'
/ them. They have been made a so.uiey s@''
IN the reorganization OF the prora - "a ms"'
he surmlsed from the cautious and c'nser'a''s
character ~ the people who planned the s1he'"e
/ And the rreferr d stock ~ the company WIZ 's'
! dioiderd payer also
Coming to the Industrial group. the s'ocA
which promises the most immediate prom
probahlv Rubber common quoted about ." i"
is not on the dividend paying list now as "
price indicates. but il is going there very so'''
for the earnings OF tho company AZ th'S '.,,
De
show a very comfortable dividend on H. \"
the time this is paid. the stock Vii ne scum,
at much higher figures than those no" q'V''.
for it, The position Of the Rubber ''mpa' ;,
likely to he greatly changed f'r the o''''' "
/ consultations now contemplate.
Another stock in this group when W." ".
tainly advance. though the advance
be slower than that - the s''cA J"s Is.
D
/ = per cent. and selling AROUND - -.
/ per cent stocks AT that price are scarce ,,.
companv is in the cleanest possible cohu'',''
and has been able to retire million o' - ~,
/ benture bonds The year has been an INV" -
prosperous one with II. and the business his
/ is Of The best II seems safe 10 say 'h'' -,
/ preferred during the Fall months VIII sen
! higher than present prices. at
Tobacco has gone up considerably 81 ia''' ..s
/ was expected to: but the insiders say ~ are