The times., 1899-08-24

per cent debenture stock represents iust
| one half of the original first mortgage
| bonds. 1t is a first lien on the property
| taking the place of the bonds. and amounts
| to only s12, SOC, coo, or less than SIS 600
| per mile on $50 miles of line. including
terminals, rolling stock, etc. With oper-
| ating expenses 67.21 per cent owing to ex-
| tensive Improvements, now nearly COM.
| pleted, the company earned its per cent
on this stock last year. and per cent on
| the next issue besides. 1t is stated by
| Mr. Stickney that the operating expenses
will be reduced this year 10 60 per cent,
or less, in all probability. The gross earn
! ings also are increasing rapidly, which will,
| with the reduction of operating expenses
make the net earnings much larger than
J the figures of last year. With this show
| ing there can be very little question that
! this debenture stock is as good as a first
| class per cent bond. The preferred "A"
stock amounts to only 81, 800, ,000 1t is
| a second lien on the property for less than
| S13, 800 per mile. This stoekaa unlike ordi-
nary preferred stocks, contains a contract
which requires the dividend to be paid
! semi i-annually whenever earned 1t repre-
sents the second half of the original first
mortgage bonds OF the line. The "a"
| stock is entitled TO 5 per cent dividend
| when it is earned. Four. per cent was paid
| during the past year, the extra one per
cent being not quite covered by the pet
earnings. These two stocks are selling in
the market at prices which, many have
considered very low. They have advanced
recently as predicted in this, column, but
are still considered an excellent purchase
| by the shrewd investors.
| The securities of the Southern lines are
attracting more attention recently, and it
cannot be doubted that many of them
wi ha cti nd apf IN +h
BOOM The street is more and more ap-
preciating the prosperity of the South, AMI
| the very low prices of these securities
compared with those of Northern and
! Western lines. Louisville and Nashville
has been the example of this during the
| past two months, and Norfolk and West
ern preferred and common are now each
advancing rapidly and steadily There has
| been for weeks heavy foreign buying OF
Norfolk and Western preferred, and the
buyers of both securities on this side have
| heen among the most careful and the
! shrewdest people in the street. The 4 per
| cent dividend on the preferred stock seems
assured in the future. and fair increase
! OF business this year will give the common
| stock distribution of profits also. South
| ern Railway preferred is strong and its
outlook for good advance in any strong
market is excellent. Among the South
Texas preferred is considered 10 have fine
| prospects This stock was buoyant yes
! terday, making good advance.
| The statement OF the international Pa
| per Company was issued yesterday, and
in view of the slump of the securities OF
| the company on Monday it was scanned
with considerable interest. AS was pre-
dicted the statement showed large earn
| ings. The weakness OF the paper stocks
was due, ii was said, to rumor that the
! company will fail to declare the expected
| dividends, but there is nothing in this
showing on which to base any such fear.
| The balance sheet OF the company shows
a surplus applicable TO dividends OF
$870,000. The regular dividend, at the rate
OF per cent, on the preferred stock,
S22, 500, 600, has been paid SO far this year,
two payments having been made. The
common stock issued is S17 000.000 The
paper securities were stronger yesterday.
American Tobacco made new high rec
ord yesterday, with a quick advance to
above 129. The buying was for insiders,
| it was said. The Continental Tobacco Sc
curities were also strong
A tip was heard in the street yesterday
to buy Wabash preferred.
chesapeake and ONO was strong yeSter-
day, getting as high as 49, for the first
time in several weeks. The talk of the
deal Of this system with the Big -Four and
the Monon was revived. ~
Northern Pacific common was one of the
active issues, getting as high as 56 3-s,
the closing price, a gain Of point and
a half for the day. The preferred also
was strong The probability that these
securities viii advance handsomely has
been pointed out in this column.
The street is beginning to believe that
the insiders have not been adverse to see
ing the New York traction securities sell
off at this time IN anticipation OF the as
sessment of the franchise tax which is
to be based on the market value OF the Sc
curities of the companies. Many believe
that Brooklyn Rapid Transit should now
be bought on weak spots.
Missouri Pacific again sold yesterday
above so. There were evidences Of clique
buying. and the street rather expects TO
see the stock advance well IL the market
continues favorable.
There was break in the dulness of the
local stock market yesterday caused by the
buying of several lots of Mergenthaler Lin
otype stock at prices advanced two to three
DOintS from Wednesday's nrice Rosfon