New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-05-28
financial.
The Financial World.

large There was a heavy decrease In loans.
which doubtless represents operations connected
with the Amalgamated Copper financing. as well
general liquidation. II was such statement
as should have been good for quite a lit In the
stock market had the sentiment been bullish;
but the sentiment is not much that way now.
and It had little effect The railroad stocks
were steady enough: the others were not; ana
Immediately after the statement appeared,
Sugar had another and lower break, carrying
the price TO AS Last Tuesday morning 1t
was 1853
Eighteen points down between Tuesday ana
Saturday Is not bad. even for Sugar. 1t Is lower
now than on the big break OF the 18th inst; for
though the lowest quotation made that morning
was l46. only few scattered lots were sold be-
low 14S. and that in the opening excitement II
would appear that a sort Of bob-tailed pool.
having its headquarters in Boston. carried the
stock up to 100 and above. When this figure
was reached. block Of some eighteen or twenty
thousand shares which had been in waiting was
promptly unloaded the pool. with disastrous
| results Outsiders who had been watching
Sugar (having been much exhorted to do 80 in
the newspapers) had noticed that the stock
went up very quietly and with no large transac-
lions until 100 was reached. Thereupon sud
den change developed; the transactions rapidly
Increased in volume and In the size OF the lots
done The pool struggled Monday and Tuesday.
and got the price up 10 163 but 1t was no use.
Not only was the block referred TO unloaded or
them; but great deal more came from traders
and others who had the stock and quickly scent
ed trouble from the way Il was acting. The
various breaks which Sugar has had since
Tuesday represent the efforts Of the pool to get
out. They appear to be still at 1t.
There was nothing in the situation TO justify
the speculative operation which ran the stock
up to 100 and above. The Sugar company Is
still engaged in It's trade war, and people In the
trade have insisted and still insist that the COM
pany is not making any money. 1t has sur
plus to draw on. but when a corporation Is ad-
mittedly drawing upon its surplus for dividends.
IL seems a poor time to start bull movement
in the stock The climax reached when II
was proclaimed that II Mr.. Havemeyer would
not consent to end the trade war, he would Do
turned out by the new men controlling the
stock. The idea OF turning out Mr.. Havemeyer
as a bull point Sugar was apparently too
much for Wall Street. however II might go in
Boston. The Street Is querying now how much
the next dividend is to be.
It was remarked here last week that the gas
war had already endangered the dividends OF
the Consolidated Company. On Friday the .
per cent dividend reduced TO per cent.
and It is we'll known that some Of the company's
directors were in favor Of making II less than q.
This figure was finally agreed upon. because a
less one would have seemed too radical. This Is
another way of saying that the directors want
to let the stockholders down easy. At present
rates for gas, It is said that not only Is the COM
pany earning nothing for its stock, but It is not
earning It's fixed charges 1T would only be
necessary for this war to continue said a
prominent gas man. "and 1t would mean the
bankruptcy Of nearly every gas company In the
city They cannot supply gas at the present
figures except at loss" Consolidated Gas
broke ten points when the reduced dividend was
announced 1t is apparently conceded by all
parties in interest that the starting OF the fght
was a fatal mistake. 1t has so demoralized the
trade, so TO speak. that some people DOUBT
whether the companies will ever get back TO as
favorable positions they held before In other
words. whether they will ever again pay the fat
dividends they have been paying.
The gas companies, 1t must be remembered
Also are Just as much concerned In the new
corporation tax law the traction companies
AS holders Of public franchises they VIII have
to bear their share Of the new burden, Whatever
that may be. This fact has been rather over
looked in the general attention directed to the
traction
az 10 how much Of an additional impost the new
law will put on these corporations Some peo-
ple connected with the companies take very
blue views of the outlook; others are disposed
m areue that there will be great increase
over nresent imposts. The best opinion Is tnat
under any circumstances the companies Will
have to pay heavily.
The Metropolitan Company will naturally
ioru
of this is taking some OF the buoyancy out OF
the stock: assisted by the disclosure that the
company's per cent dividend is not being
earned The last quarterly statement showed
earnings at the rate of about per cent only on
the stock This was somewhat OF a revelation;
because the stock has been selling at extrava-
CANT figures on the idea that It's earnings were
in excess Of the dividends paid, While the future
was one Of untold promise Whatever the
! promises Of the future may be. there Is no get
| ting away from the facts OF the present. anu
Metropolitan selling now at 30 (and II mas peen
thirty points higher, while earning less thah
the per cent dividend 1t pays, as disclosed py
It's own report, is an absurdity. rake II any
way YOU will It is impossible TO see In the pres
ent condition OF the company or IN any reason
able period Of the future justification for such
| an extravagant price
This Is not the first time such an opinion mas
been expressed. On several occasions lately
sound financial authorities have pointed out the
danger OF a speculation which was carrying the
prices of the stocks Of the traction companies
far away from actual or reasonably prospective
earnings. 1t this same uneasy ieenhs
which made many friends OF Brooklyn Irac'ioh
stand off, as 1t were, when they saw IL shot Up
above par, while 1t had yet to pay It's hrs' ui'i'
dend The powerful speculative force pehihu II
was unmistakable and every trader rash enough
! to sell it short made to pay dearly Tor ms
temerty; but for all this. the feeling could not
| be got away from that the future--even suppos-
| irx ,ha S,,tura favorable-was being discounted