The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-06-28
STEEL STOCKS UP.
The Standards Hard
en- and Maintain
Strength.
ALBANY ADVANCES I MORE.
Investment in Massachu-
sets Electric
Notes.
ALBANY ADVANCES I MORE.

The stock market had a good rise
yesterday continuing the gain which
began Monday.
Traders point to the Vanderbilt deal as
the basis for their taking to the long
side Of the market, arguing that great
interests are at work, making for
changes of a bullish influence. There
is no more definite news respecting the
deal" save that rumor now adds the
Boston and Maine, it being stated that
Vanderbilt interests are negotiating for
the purchase Of the Boston and Maine
stock held by Pullman's Palace Car
Company, the American Express Com
pany and the Sinclair estate.
1t seems TO be taken for granted that
the negotiations for the acquisition Of
the Albany road are likely to reach
completion this week. but anything as
TO terms is as indefinite as ever. Al
bany stockholders do not like the ru
mOred proposition Of an exchange of 3
per cent bonds, but it has to be shown
that such proposition has been consid-
cred, or, in fact, is anything more than
street suggestion. Boston and Albany
stock advanced Z more to $50 today, or
p points since the talk began a few
days since. New Haven held al 218l2
with further gain, though fractional, in
New York Central, and other Wander
bilt shares also continuing upward
The Lake Shore, the Michigan Central
and the Canada Southern companies
yesterday declared their regular semi
annual dividends and issued earnings
statements.
The general market in Wall street
was strong all day, with the railroad or
standard stocks in request; industrials
and traction shares were less attrac-
tive, and were inclined to be somewhat
irregular. Federal Steel naturally i'm
proved on the dissolving of the injunc-
ton against the dividend payment. In
Boston, Dominion Coal rose H. TO So;
Bell Telephone /, to $50; New England
Telephone rights a to g. Arcadian r.
to 55; Copper Range e. to 40; Parrot
rs, TO 5214; Isle Royale u, to A. There
was good buying Of Atkinson pre-
ferred, c., B. q 2. and Federal Steel,
and traders generally We're quite will
ing to talk buIlish and to take the
long side of the market. The mining
stocks were firmer, but still quiet, but
Baltic was up ~, at 351a, on good buy
ing.
It is understood that while it was ex-
pected that the subscriptions to the
Massachusetts Electric Companies
would be largely from business inter
ests who would see the prospective
profit in the common stock bonus,
considerable part of the subscriptions
thus far have come from trustees, and
some of them from the most conserva-
tive trustees in Boston who are looking
for the return and security of the pre-
ferred stock. The effort of the man
ayers of the Massachusetts Electric
Companies thus has been appreciated
very promptly by the trustee interest
The plan has been and is to make a
conservative investment out of our
home electric railways surrounding
Boston. These railways have been of
small capital with limited field for OPP
Grafton. but each railroad carrying a
full complement of officials. They have
been selling upon a higher basis than
four per cent interest return, but the
purchasers saw that by uniting these
power plants, making a larger market
and a consolidated management they
could divide the stock so as to reach
two classes Of inYestors-give the con-
servatiYe class a four per cent stock
free of taxes that in time should sell
above par, while the common stock, at
present earning two per cent, could
take the chances and growth of the
future for dividends beyond two per
cent per annum.
The reason that the trustee element
so promptly has appreciated the pre-
ferred stock feature of the plan prob
ably is to be found in the fact that
home railroads today are selling at the
highest prices and the lowest invest
ment return at which they ever have
been quoted. Not one of them pays the
investor as much as four per cent. The
Massachusetts Electric companies, in
offering a four per cent preferred stock
free of taxes, at los, carrying a bonus
of fifty per cent in common stock, is
something to be contrasted with the
yield of the other home railroad IN
vestments now in the market as shown
IN the following table: