The times., 1899-10-15

@ oati n9eS " oeFeHVSu upVA 70 nelp the
movement.
The professionals have controlled the
market for many days, but a professional;
market will not last always and the oues-
ton is whether when strong movement
begins 1t viii be toward higher prices or
toward lower
The movement that attracted most at
tention yesterday was the early stump in
Brooklyn. The stock went off to below
SO, drop of nearly 2 points after a tumble
OF points on the day before. This weak
ness OF Transit filled many timid people
with fears that the entire market was 90
ing to pieces Immediately. AT the end of
the day, however, it was found that Tran
sit had only lost l SIS, and that in the rail-
way list there had been more net gains
than losses. Brooklyn was attacked with
exceptional viciousness by the bears, as If
indeed they were playing their last card
Toward the end of the session it had a
sharp rally to 81, which showed that the
bears were not in the least confident of
their ground. The Wall Street "newspa-
pers'' contained bearish stuff concerning
the system, evidently put out by the bear
clique. They told of attacks that the Leg
isiature Will make on il and of violations
OF its charter that are to be probed. They
took last years earnings statement and
without making any account of the txct
that the system will probably make large
cut in operating expenses, argued that the
gross earnings will not be likely to advance
Sc, 6,0000 000 this year, which would give per
cent for the stock if the operating expenses
should remain at the same ratio. All this
was manifestly largely the veriest of bear
argument. The people that were induced
to sell stock because of it are likely to be
very sore next week, according to the
opinions of some of the best people in the
street. Insiders in Brooklyn Rapid Transit
do not make any more promises of imme-
date dividends. 1t ought to be con-
vincing argument, however, as to their
position regarding the stock that they are
buying it and not selling it.
The steady increase in the business of
the three most prominent of the Southern
lines, Southern Railway, Louisville and
Nashville, and Norfolk and Western, is
one of the exceedingly gratifying factors
OF the railway situation. Their business
last year was very large the largest in
their history, and yet the present earnings
of the company every week show a long
advance over this record. Compared with
the earnings the prices of the securities
of these lines are the lowest on the list.
Norfolk and Western preferred is a 4 per
cent stock, and the company is netting
something like 10 per cent on the stock
after all charges at the present time This
seems to make the dividend on the pre-
ferred reasonably secure, and yet it is
selling around 6S where it pays about
per cent on the investment. The common
stock price is quite as cheap comparative
ly. If the present rate of earnings is
kept up during the year, there viii be
earned on the common stock after the pre-
ferred dividend about IL per cent. The
stock sold yesterday around %. 1t is es-
timated that the earnings of Louisville for
the year will be between and 10 per cent
on the stock. 1t is selling at 81. The
Southern Railway is earning within meas
urable distance the same amount on the
preferred stock that the New York Cen
tral is earning on its stock. 1t is selling
at 81 and So. ii the South were dead or
were about entering on period OF plague,
pestilence. and famine, it might not be sur
prising that Norfolk and Western preferred
stock, earning twice as much as New York
Central and receiving the same dividend
should be selling at about half the price.
Instead of this, a period of immense pros
perity is just beginning in this section.
1t is said that the Vanderbilt interests
have been buyers of Big Four recently.
Their purchases advanced the stock two
or three points early in the week, and
they have not sold since that time, as the
price went off again. The earnings of the
company have been fine recently, showing
steady increases over last year, and ac
cording to the promise of the annual report
of the company, dividends will be begun
out of the surplus in December The in
crease Of earnings for the first week of
October was $32, ,259, and the increase for
the period from July /, about S250,00O. The
company is now earning at the rate Of
about 3.5 per cent on the stock, and 2.5
per cent was earned last year. There is
talk again of the amalgamation of this
line with the Chesapeake and Ohio, but
such a plan need not be in contemplation
to make the stock attractive.