The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1899-02-02
THE CONSOLIDATED'S BOOM
NOTABLE RISE IN THE PRICE OF
ITS STOCK YESTERDAT.

An Assortment of Reasons for the Adj
| vance, What New Haveners Say on
! the Subject The Good Outlook for the
Roads Future as Considered from n
| Conservative Standpoint.
Consolidated railroad stock enjoyed a.
| special boom yesterday, rising to 211,
and various rumors, more or less excit-
ing, We're afloat to account for the
| bulge. The stock has hung around the
| 200 notch for quite while and did not
Vanderbilts, the grangers, the Pennsyl-
vania system, southern roads and many
other railroad stocks have been enjoy
ing. The prediction is made by OBJ
servers in Wall street that this stock Is
going considerably higher and is likely
to retain much of it's rise for a good
while to come. One report says that
$4,000 shares which have hung over the
market for this stock have at last all
been marketed, they having been fed
out at about the 200 mark. Also among
the assortment of reasons given for the
bulge in the price of the stock are a
reported large increase of earnings
which is not verified; reported new
departure which will result in a mater
ial decrease of operating expenses,
which also appears to be only a rumor,
and finally the report that Wall street
is influenced by a speculative mood just
now which finds it very convenient to
add to the bull enthusiasm of the sea-
son by taking hold of a splendid per
cent. dividend payer with a long record
as big dividend Garner and road
which is among the old established ones
of the United States New Haven brok-
ers are not by any means certain as to
what is causing the upward movement
in the stock and are inclined to think
that as the stock hasn't participated in
the Wall street boom it is now taking
it's turn at the wheel Vice President
Hall, the head Of this great corpora
ton in the absence of President Clark,
has no particular theory to advance as
to the cause of the upward movement In
the price of the stock. Another theory
advanced as to the Fitchburg deal OF
the New York Central and it's possible
aim to get control of the Hoosac tun-
mel was not considered by brokers
much of a bull argument for the Con-
solidated. A conservative capitals.
was of the opinion that the Consolidat-
ed had turned a corner in it's history
and that the big OUTLAWS and expendi-
lures for acquisitions and improvements
We're now in the main over with, and
that hence with increased facilities and
the constant natural growth of the
country tributary to its lines the Con-
solidated was bound to improve in its
net earnings from year to year. The
proba utilities were in favor of an in
creased earning power for the road
AS to the claim that at I'll the stock
would not yield 4 per cent. on the In
vestment the gentleman cited the New
York Central, which is quoted at 134-5
and pays only per cent, and North
west. which is 149 and pays only per |
cent The time was coming, in fact had |
come, when a per cent return ON
money would be considered fair yield.
In Great Britain railroads do not pay 3 |
per cent, even the greatest of them.
There was no fear that the Consolidat- |
ed would not be able to pay the In
creased amount which will be required |
for dividends when the roads deben-
lures which now get per cent, will be |
merged into the stock and call for
per cent.
A New Haven banker, speaking of |
the $4,000 shares above alluded to, said:
THE 1900 shares of stock in question,
which was treasury stock of the road,
was taken by Boston syndicate, head
ed by Kidder, Peabody & Co. and Lee, |
Higgins & Co, at 1876. They have been :
the stock right along until
the price reached 200, and have bal
ance left on which they will net a very
handsome profit. The Consolidated
stock is being doomed by Wall street
men, who see profit ahead in so doing.
While there may not be millions in it,
there is snug profit in the transaction.
There is no indication af1oat that the
is to be leased by the New
York Central, and the Fitchburg deal
If the New York Central, if carried out
would not help the Boston and Albany
road any"