New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-08-27
Tnanfidl.
The Financial World.


vance with which 1t had closed; and II was
brought to an abrupt halt by the publication O,
the Brooklyn Rapid Transit report and the co.
incident fall In the stock. and by a break IN
Sugar. Thereafter it was irregular and 80 con.
tinued. The Tobacco stocks went I'D ths
granger stocks about stood STILL Union Pacific
advanced Consolidated Gas first broke. then 70.
bounded higher than before: and various spe.
ciaties went up or went down for special rea.
sons. London was quite factor in the trad
ing, because a group Of New York operator,
happen to be gathered there at this time who
are making things quite lively.
The great disappointment over the Brooklyn
report, which was so manifest, came from thla
1t had been expected that the report would show
earnings equal to dividend OF something owe,
4 per cent the stock S45GOOOO in
amount. The declaration OF a dividend at that
or any other rate, was not looked for as Il had
been repeatedly stated by the leading men in
the company that there would be none. But ~
the earnings had been there. no disappointment
would have been felt. When II was found that
the surplus was less than half million, which
had been absorbed for various purposes II was
the most natural thing In the world that there
should be a rush TO sell. 1t was clear that some
one with advance knowledge OF the report must
have anticipated that 1t would prove dsap-
pointing to the public, because there had been
plentiful selling Of the stock a week ahead OF
the actual publication OF the report; but IL IN
quite apparent that some Of the friends OF the
property were surprised at the extent OF the
public disappointment
The publication OF the report puts the trading
in Brooklyn Transit on a different basis from
what 1t has been. 1t has hitherto been on an
ticipations without figures: In future II will De
anticipations with figures. The report est.
mates that there will be the current year earn
ings equal TO AZ per cent on the stock Thla
then. must be the basis of the trading. Metro
politan pays per cent and sells over 200; Man.
haitian, paying 4 per cent. sells about ll2
Brooklyn has yet to pay dividend and wheth-
er 1t Will continue 10 sell at prices equivalent to
the other stocks mentioned. largely depends
other things being equal upon the amount OF
market support which will be given to II by the
leading men in the company. They are In TO
stay and are firm believers in the future OF the
property. They say it has only begun TO show
what 1t can do. AS they started with It from
the ground UP. II is likely their holdings OF the
securities average them pretty low; they are
therefore In a position 10 buy at higher levels
than other people. They have been the large
men should find that It required harder work
10 handle the stock above par than II has been,
they will see that It comes from their own state
ment to the public. viz, that they anticipate
earnings this year equal TO Az per cent on the
stock.
On Tuesday the Union Pacific directors will
raise the dividend rate the preferred stock
from TO the full rate Of per cent. This is all
It can get The surplus goes 20 the common.
With the standing Union Pacific. part Of the
Vanderbilt system, has with investors here and
abroad, It Is probable the preferred stock will
work up between So and So. and hold. Where
the common will go depends upon facts about
which the public will know more after the an
nual report comes out. At this time the stock
has the look Of being a purchase.
The rapid advance in American Tobacco was
on the tip that the dividend is 10 be made
per cent instead OF g. The holdings Of the
stock are known TO be still closely concentrated.
the public having been sufficiently distrustful
Of II since the stock was doubled 10 prevent
any large distribution. Otherwise. the dividend
would not have been increased. contrary ef-
feet was apparently produced by reducing the
dividend, In the case OF Consolidated Gas. Be-
ing cut from 6 to per cent. the stock rose
about ten points. The inference was that the
buyers had heard something aboue change OF
heart in the venerable Mr.. Sage. who is charged
with being the primary cause Of the gas war.
Runors are current that something Of i'm
portance will develop In Missouri. Kansas d
Texas In connection with the Chicago Alton
syndicate scheme. 1t is certain the Rockefei-
lers who are the leading owners OF the prop
erty have lately been talking in favorable
way about II: whereas last year. they spoke Of
~
would-be buyers Earnings happened to be
poor at the time. and not growing better; out
after all. the road came out well. 1t showed
surplus equal TO over per cent on the preferred
stock Since July LIST. the earnings have been
increasing al a rapid rate and business In sight
promises their continuance. Furthermore tho
big expenses Of the company for improvements
such as steel bridges. etc. are behind and no'
before They have been made. What the new
scheme may be- II any. In connection with the
Alton we do not know; knowing only tha'
various rlmors are afoat. Whatever IL is, IL |"
one expected TO improve the status OF the prop
erty OF the preferred stock We say nothinB'
but OF the second mortgage bonds, per CENTS
quoted around 20 IL may be SAID that they a''
among the very few old securities when nav
had scarcely any movement during the uooh-
It Is reported now that they are going up So'io
enthusiasts talk OF 90. II they go 10 10 IL VIII
be we'll enough
One of the most interesting events OF tn'
week Is the disclosure that the dry bones oi 'he
Leather Company are TO get SHAKING up ~
this company has less than - direc'oi~
there ought to be a big rattle when the snake
comes. Just think OF a company having ~ d'-
rectors, Eleven would be ample. Ana 1us'
think, also Of the poor showing the - ha's
been able to make as managers OF the concern
The stock, while paying regular DIVIDENDS
per cent. has been like lead In the market
was the one which almost alone on the h''
defed all attempts to lift H. although e'ei'
other industrial was booming. Recent I"'e.
buying both OF the common and preier'.u