The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-08-03
AGAIN The FAVORITE,
Baltimore and Ohio
Will Soon Be in
Demand.
WHAT METAL DEALERS THINK.
The Copper Versus the Alu-
minum Market-Both
In Demand.
WHAT METAL DEALERS THINK.

The opinion prevails among financiers
in New York that the Baltimore and
Ohio securities at no distant dav once
more will become favorites with in
vestors. The new corporation, physical
ly and financially, is a very different
proposition from the old one. Its
fixed charges are simple and compre-
hensible, and the condition of the
road from every point of view is such
that reasonable confidence may be felt
that dividends as well as interest will
be earned. On the New York stock
exchange yesterday the bonds were a
feature, and fair-sized transactions in
the common and the preferred stock
were recorded
Before the reorganization the bond
list showed some thirty different secu-
rites on the Baltimore and Ohio sys-
tenn. The new company has out only
four classes of bonds, and five-sey-
enths of the total issue of SITS, 000. 900
pears only IL per cent interest The
total interest charge ON the bonded
debt stands at $6,375, 900. Rentals
amount to $777 900, and taxes are estl-
mated at $S39,000 These figures include
the Baltimore and Ohio Southwestern
new company thus has started out with
total charges a little under SO, 900, 900.
That within year or two at the latest
its net income will exceed $40, 800, 600 is
confidently believed by those in author
ity.
For the present, however, the heavy
expenditures for permanent improve
ments that characterized the receiver
snip, Will continue. An official state
20
the OUTLAWS from 1895 to 1899 for the
reconstruction and undermining of the
road amounted to nearly $35, 900 600
President Cowen is credited with the
remark that $4,000, 900 more must be
put into the road and equipment
The Boston News Bureau quotes a
dealer in metals as saying: 1.-TWO fac
tors have nonplussed me. 1 cannot
understand how it is that I can sell
copper wire made of Lake Superior
copper at 1872 cents a pound when
everybody in the world is supposed to
be clamoring for lake copper itself at
1872 cents, and it is supposed to cost
Ia cents per pound to manufacture the
copper wire. We are selling this con-
per Wire at 1874 cents and are guaran-
teeing 1T SO per cent pure copper. A
second factor that bothers me is the
aluminium competition. In July this
year | lost q contract for copper wire
because aluminium outbid me- not in
price per pound, but in relative efficien-
cy compared with price, and my price
for copper wire was 1917 cents. I note
that the North Western Railroad com
pany of Chicago has closed a contract
for 10000 pounds of aluminium wire for
use as feeders in its third rail system;
also that at Orilla, Ont, power trans
mission plant at Ragged Rapids on the
Severn River is being installed, where
it is calculated that two thousand
horsepower can be deyeloped and
aluminium instead of copper wires are to
be used for the transmission of power.
also note that the Pittsburg Reduc-
ton company, manufacturers Of alum
mum, is about to invest $4,000, 900 at
Shawinigan Falls, Que, for the produc-
ton Of aluminium"
In respect to the above, another stu
dent of the copper situation SAYS: eff il
were not for some people foregoing the
use of copper under the present stress
of demand, largely American, the price
or copper would be anywhere from 20
to rs cents per pound. The fact is the
copper producers are welcoming all
substitutes that will help to keep down
the price of copper, realizing that a 20
cent price in the end would be very
bad for the copper industry. The large
producers in this country have reached
their limit. The Calumet & Hec1a has
for five years been drawing upon its
mineral reserves and a comparison Of
its annual reports viii show that they
have now exhausted the 5000 tons Of
copper ninera. they stored up as re-
serve five years ago. 1t will also be
noted that the Calumet & Hecla has
not been able to increase its output OF
copper, Notwithstanding the rising mar
ket and very urgent demand, and that
the Anaconda has been obliged to re-
duce its output. My opinion is that this
calendar year Will show a smaller
American output Of copper than last
year, and know every copper field
and the output of every copper mine in
the country in a general way. The i'm
portant fact is the Increasing demand
for copper, zinc, iron, tin and steel.
while copper alone is unable to re-
spond with an increase in production"