New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-04-15
financial.
The Financial World.


of activity in the coming week. Attention 1.
mainly concentrated on few prominent stock.
in the trunk line. the Southwestern and Pacis.
groups While the trading IN Pennsylvania he.
been large. the stock has made special prog
ress: but in the B. & o. stocks there have been
further substantial gains in value. This is no.
surprising after the revelation 70 the Street tha
the issue of common stock was underwrit
ten at 80 Az underwriting price OF 80 for n
stock which has yet TO declare its first dividend
notification that the status OF the b q
o. property under present conditions vastly
different to what il was year ago In
this period the b. & o. system has. 70 speat
become part and parcel OF a yet greater system
the great trunk line corporation which ecn.ro,,
everything between the Atlantic seaboard and
the Mississippi and which may be said to h.
governed by a single board OF directors Whs,
the representatives of the Pennsylvania and
the Vanderbilt interests meet in this board n.
dominant powers there; because there ia
now no line of real importance in this broad
stretch of territory which these powers do not
directly or indirectly control
II would appear. however. that the acquire
ment of b. & o. stock for purposes CT permanent
holding in connection with the ratification Of the
Atlantic trunk line system. has not YET been
complete. At least. the stories current in the
buying has been TO go into the boxes" as the
traders express it. The prices 70 whah both
b & o. common and preferred VIII go this year
are so high according to these reports that one
would set them down norsensical II il were
not that predictions OF the present prices for
these stocks would six months ago have seemed
absurd When. therefore. hear Of par and
above for the preferred. and much for the
common the feeling of incredulity is tempered
by the reflection that such prices more
improbable thar Thursdays closing quotations
for both stocks would have appeared this time
last year. These are days Of vast combinations.
with financial operations connected with them
on a scale of magnitude which still find il
difficult to grasp.
Reference was made last week TO the large
buying which had been going in Missouri
Pacific. Here again there seems 10 he some big
scheme afoot which will only be developed when
the price OF the stock has about discounted H.
What the scheme is. or If there De at all
there is not even at this time much
rumor All that can be positively ascertaInsd
is that large amounts of Missouri Pacific have
lately been acquired by interests which do not
go into such operations except in pursuafce OF
plans which to carry out require a voice in the
management of the property. They are not the
sort of people who buy and take UP large blocks
of stock simply on the chance of making a quick
turn in the market. Mr. Sage says Missouri
Pacific is going up because the company is soon
going TO pay dividend on it, which may be 1
per cent this year and per cent next year.
When the old gentleman gave this out, the nim-
BILE traders Immediately jumped on the stock
and forced IT down. implying thereby their be-
lief that whatever Mr.. Sage said must be IN
terpreted in a contrary sense; but when they
had done with their jumping. Missouri Pacific
uncommonly healthy around closing prices be-
tween 81 and 30 on Thursday. The report is
that IL will go 10 IS. This price is not guaran-
teed Probably II will not go 10 that hgure,-one
may retain a judicial frame Of mind In respect
TO the exact quotation. Yet there have been 50
many apparently impossible predictions verified
of late prices. that if Missouri Pacific did
go TO 10 one would accept the fact with Secor-
ing resignation.
There can be mistake about the collateral
trust bonds of which much has been written IN
this column One issue which has been repeat
eddy preached as purchase when they were
low in the 9Os. already above par; and
those of the other issue which still below
par will very soon follow the other UP. Cespite
the fact that the company still has some In rs
treasury which II can sell-a fact which always
gives the average bond dealer a cold chill be-
cause he doesn't know at what moment the
company will be in the market as a competing
seller Any one afraid to take speculative
chances buying stock. can buy with practically
no risk at all the bonds referred TO.
A large block of Union Pacific stock held
speculativeIy was marketed around So 70 take
profits This temporarily set the price back
three or four points: but soon as the selling
was over the price recovered London was
large buyer the decline Such incidents must
be looked for as a stock moves up on the devel-
opment of the property People who have been
far sighted enough TO buy at low prices. and
hold on in the assurance that the growth or the
property will make higher prices for the stoeA'
cannot be blamed for taking a good profit wnen
the right time comes. These people generally
sell out when the slower investor comes in; ana
the investor is coming into Union Pacific now
when buying around so he get per cent on
his investment on the dividend now paid, anu
has the certain expectation that ne will not
have long TO wait before the dividend IS m
creased
There also some speculative profit taSlns
during the week in the Atchisons and the North
ern Pacfcs which sent of the quotations
point or so. In this. however. there was ia
course nothing affecting the properties them
selves and the reasons FOR further advances III
the prices OF the stocks. wheE the market mas
digested these speculative sales. remain as COCO
as ever The stocks are sood TO trade into Sc"
on rallies and take back on the reactions
The steel stocks distinguished themselves os
conspicuous weakness; which is not to be Won
dered at No one could take note OF the way
the action of the Federal Steel directors in re-
spect TO the dividend was received in the street
without having the conviction forced on hin,
Of NIL he