The evening times., 1899-01-16
MAGICAL UPWARD BOUND
IN AIR BRAKE STOCK
WALL STREET AsToNIsHED
Remarkable Performance Follows
Predictions Made by Former
Governor Flower.

New York, Jan. 16-During the recent
boom in stocks there have been several
picturesque features one OF the most note
worthy OF which has been the remarkable
pyrotechnics of New York Air Brake,
which last August was selling at some
thing like $40 share, and on Saturday
closed at s145, after AN advance of $2i for
the week.
In other words, more than the original
face value of the stock has been added TO
it in less than six months, and the man
who boug y it last summer might have
cleared profit OF 200 per cent II he soid
out Saturday at the top.
The remarkable rise of this stock has
set Wall Street to talking. 1t is a So
called Flower stock. It doesn't pay any
dividends, in which respect ii is like rock
lvu Rapid Transit stock, which is also
classed as a Flower specially
When former Governor Roswell P. Flow
er last summer began to predict much
higher prices for securities the tip was
quickly passed around that New oFh alf
brake would sell very high, while Mr..
Flower openly predicted that Brooklyn
Transit would go TO par.
Very few cared to avail themselves OF
rhe point on Air Brake, knowing that II
used TO sell at about 81, and that II mas
legal fight on its hands in regard to al
legged infringement of patents, and that the
Westinghouse officials think they can pre-
vent the New York Air Brake Company
from selling any brakes at all.
Another reason why few spectators car
Cd to touch ii was that brokers demanded
prohibitiye margins, while investors oldh
see any dividends in sight All the same
the stock soon began to move upward dur
ing August and along in September II
Jumped ten points at clip, until 1t touch-
ed l2O During this time II had seVeral
violent reactions, and aiter reaching i-0
il dropped TO 96
Nevertheless the O-point advance prov
ed in striking degree that the former
governors predictions were no empty ut
terances and when other reports purport-
cd IN come from Mr. Flower about certain
stocks going up many traders lost no time
in taking the hint and getting aboard
After the autumn recession in stocks
and the entire market moved up again,
New York Air Brake stock again steamed
I'D, and distanced all others on the list,
! II jumped to 10 again, then to 120 13o,
| 40. and finally to las last Saturday.
The stock frequently sold at a differ
| ence of two or three points between sales,
| and the transactions have not at any time
! been heavy. One reason for this latter
! fact is the smallness of the capital stock,
which is only s5,000,000. nearly all OF
| which is said to be owned by insiders
| On this account II is SAID tnat lne pears
1 leave il severely alone.
This company was organized about ten
years ago. under the laws of New Jersey,
| as a successor to the Eames Vacuum
| Brake Company, by several prominent
| New Workers., and it undertook to COM
| pete with the Westinghouse company. The
works were established at Watertown, n.
| Y. the former home of Roswell P. Flower,
who has in the last several years taken a
/ lively interest in ii. With Mr.. Flower
were Daniel Magone and Anthony y. Bra
| dy.
The new company made contracts right
| and left and it promised to make things
| lively for its big rival. In November,
| 1890, the Westinghouse Company began
suit in the United States court of this
district for infringement, and in the fol-
lowing year decisions We're handed down
! by both the lower court and the United
States circuit court of appeals granting
the desired Injunction restraining the New
| York Air Brake Company from selling its
| brakes. All New York brakes had to be
| removed from cars in operation.
Then the New York Company got up q
| new brake, with a triple valve, which il
| proceeded to distribute over several lead
ing roads of the country. including the
| New York Central, Jersey Central, and
| Louisville and Nashville, and, according
to its officials, its brake is now in use or
| more than forty roads. The Westinghouse
| Company again sued the New York Com.
pany for infringement in the United States
circuit court before Judge Wallace. and
| was defeated this time.
Then the Westinghouse Company car
| ried the case to the United States circuit
court of appeals, and . decision is expect.