The evening times., 1899-08-15

I o. tobacco ofd-....... 8. :91s :, s5s
The early business OF the stock market
this morning was OF much the same tenor
as that of yesterday. The railway list
was for the most part inactive at level
of prices little changed from that Of yes
terday Many of the industrials were active
and buoyant, reaching new high levels, the
buying again seeming TO be largely Tor
inside account and for manipulative pur-
poses The public has not yet begun TO
buy these securities to any great extent,
and il seems very certain thai II any suS-
tanned advance in the market is to be en-
gineered it must be through the railway
list, advances in which always attract the
big outside public. The immediate out
look is most uncertain. A recession Of a
point or more would cause no particular
SURPRISE and an advance less. The Street
generally is more hopeful than at any
time recently, over the ultimate tendency
of the market to advance this autumn, ON
the general great prosperity OF the country.
One of the surprises of the morning TO
many was the weakness of American Steel
and Wire common, which from a high point
yesterday OF 62 or better dropped in the
first quotations today to IS 34. The SELL
ing was very evidently by inside interests.
which began to buy the stock few days
ago when il was 8 or 10 points lower. The
statement OF the company yesterday to the
New York Stock Exchange should be re-
ceived with much favor. Even If the COM
pany is capitalized for more than the
plants could be duplicated for the figures
given out show that during the first six
months of its existence 1t earned over .
per cent On the entire $4,000, 600 cauitali-
cation. The number OF railways that do
I, iS ;x,eIt fnr-
And when q railway does SHOW in an en-
tire year per cent net on its stock the
market price of the stock is considerably
better than that of American Steel and
Wire common, which earned ; per cent in
half year.
There is prejudice against the Industrial
corporations, which is to a certain extent,
well founded, but it is safe to make the
prediction that a few such statements as
this viii induce the buying of their secu-
rites nevertheless. Comparisons are worth
something, even although they are some
times deceptive. Here is one comparison:
New York Central during the year end
ing June 80, 1899, earned about S 1-2 per
cent on its stock. This stock is now SELL
ing in the neighborhood of 140. The
American Steel and Wire Company is earn
ing now at the rate of at least per cent
on the preferred stock and IA per cent on
the common stock. These two issues are
selling around 100 and 60 respectively. On
this basis, comparing earnings and price
of stock, the railway stock is selling for
very nearly four times as much as the
trust stock. Or in ether words, suppos-
ing all earnings were to be paid out in
dividends, $100 invested in New York Gen.
tral would earn less than 81 a year while
the same amount invested in Steel and
Wire would earn more than SIS a year.
And as for over capitalization there is
more than one railway in this country
high in favor with investors that could be
duplicated for considerably less than the
total of its bonded Indebtedness and capt.
tai stock.
Tennessee Coal and Iron and Colorado
Fuel and Iron were both strong this morn
ing at near the top prices reached yester-
day. One of the stories in the Street this
morning was that large syndicate has
purchased an interest in the Tennessee
Company amounting to $4,000 shares. 1t
is said that 100000 was paid for the
stock, or 500 share, and that the new
interests will have a prominent position
in the affairs of the company. This story
may be fiction, but the earnings of the
company are very large at present, as re-
cent statements have shown, and it seems
not improbable.
The railway stock to show most buoy
ancy was Louisville and Nashville, which
made another price record, rs 3-8, during
the first hour. London and German houses
are still buying the stock, apparently for
investment on the fine earnings state
ments of the company.
1t was stated this morning that If a
quorum is obtained at a meeting of the
directors OF the Chesapeake and Ohio a
dividend OF 1 per cent will be declared on
the stock.
American Tobacco early this morning sold
as high as 119 LIZ. Talk of rival trust
to be composed Of a number of the smaller