New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-01-08
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FINANCIAL FORECAST.

The market for Pan Handle common has developed In
manner altogether unexpected. II seems to be strus
ce on tn. part powerful interests to acquire the OUT
standing stock and become Of the mos
Interesting financial battles which occurred In the
history OF the n,w York Stock Exchange. II she man.
as.r, OF the Pennsyvania Railway Company buying
this stock they engaged IN strategic man~uvre or
the utmost Importance ownership s virtual neces-
sty to them and they could acquire in any other
manner a, such low average cost. II they had ap-
preached the minority holder, direct negotiation the
eager minority holders would have Jumped UP their price
As It Is now whatever they pay for the remnant still
outstanding average will be low and the future
harmony systen assured. As is now she East
EN- and divisions OF this great system are
held together by oths: tie than majority ownership
This Is dangerous position and may threaten
any the integrity harmony OF the system Inc
Pennsylvania 10 the best railway property In the
world itself and clean Itself OF all inter
;ansns equities AID become SOLID unihed line one
unmodined management. Evidently the Pennsylvania
managers realize this for they have called general
meeting Of the stockholders Of the Pennsylvania Railway
Company authorize the purchase Of certain equities OF
their system. Tho Philadelphia Press which 10 re-
earded a. their organ. says:
1T 4. more than likely that the stock Of some OF the
companies especially Of the Western lines b Sc
cured but the Pennsylvania Railroad Company has
controlling interest Of them will only BE- add
ing more stock o that which II owns"
The cabies to The London Times with reference to
this meeting coupled the meeting with the p. c., c.
81. L. property. The Philadelphia Press" however
thinks otherwise because the p. c.. St. L. securi-
ties hsv. been guaranteed. the Philadelphia
Railway Company should guarantee the p. C.. C. 81
L. shares these guaranteed shares would then como
within the limits OF the resolution.
Before the recent advance in these shares the Pennsy
vania Railway Company. the Pennsylvania Company ana
inside friends the two companies were jointly holding
three fourths Of the Pan Handle stock IL they have
been buying the they force consolidation
and entire system unified line at compare
lively no cost the dividends they may guarantee
upon the Pan Handle would virtually all be paid
to themselves.
Fort Wayne stock guaranteed is selling at 17' Even
IL Pennsylvania managers paid prices as high rea
tveiv the Pan Handle stock stii outstanding the
OF their holdings would be comparatively
low their position way improved But let us
ignore the merits OF P. c., c St L. stock as TO Its
strategic value relation the Pennsylvania system
and look solely with reference to dividend prospects
The gross earnings will far exceed sixteen
million dollars this year and every future year Vice
President McRea superior in practical
management keep this property In fine order for w
per cen, OF such earnings eoncede that he ex-
pends 85 per cent the result would be - ooooW
This will Justify dividend OF cent on the common
stock As the years 60 the earnings will reach
eighteen nineteen twenty mions and the net result
will be seven eight ten per for this stock Should
Pan Handle stockholders meanwhile become inpatient
They ar, exactly IN same position toward the Penn
,vivania Railway Company the minority stockholders
:, Northern Central we're The Central stock
holders were turbulent for time. but have received
than seven per cent per for the last sixteen
years A few days ago a decision rendered in the
Court OF Common Pleas OF Philadelphia in favor OF
minority stockholders against the Pennsylvania Railway
Company forcing that Company TO make an accounting
hav. expressed themselves having other purpose
than full Justice to the stockholders OF the p c. c.
81, L. Company after improvement Of the property The
Pan Handle minority stockholders rest tranquil
| TIL. Pennsylvania manager. will do exactly this:
Expend the large earnings betterments long
they can make consistent explanation Then they will
paw dividends Then the p. c.. c. St L. shares Will
rank like bond They will be better than bonds. BE-
cause they will yield increasing income and
| turs.