New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-03-04
financial.
The Financial World.

came yesterday from rush to cover shorts be-
fore the close. some of these stocks recovered in
an hour more than they had lost in a week
The continuous increase in the earnings Of the
properties would account for this and in
so much as the stocks of those roads which
have a large coal traffic. for the outlook for
these for the next twelve months is one OF con-
stantly expanding business. Attention may also
be directed to the large buying of the Atchiscn
stocks and it Is rumored that the February
statement of the company will be as good "a
was the January statement which was phe-
nomenal. We have 1t excellent authority
that If the general market is any way favorable,
Atchison will be leader in the railroad list
In respect to Union Pacific. II only needs TO re-
mind the investor that IL the company's earn
ings fell S3,5OO,OOO from their present figures.
4 per cent could still be paid on the common
stock. 1t is paying per cent
The public interest in Third Avenue affairs IS
surprising 1t is rare indeed that hears IN
chance gatherings of people outside the purlieus
OF Wall Street. animated discussion of the fort
u1es of railroad corporation but for the past
week or so. one seemed TO hear Third Avenue
talked about at every street corner. Doubtless
this comes from the fact that being city road
and mixed up with local politics. the papers
have exploited the business much more than
they would have done II only the collapse in the
price of the stock had been the sensation. Wall
Street. has often been treated to sensations like
that without the outside public getting In
terested The rapid rally in the stock yester-
day, rising nearly nine points from its lowest
quotation of hour before. was attributed In
the main to the covering OF shorts; and as there
appears to be still large borrowing demand for
the stock 1t is possible that another advance
may be in order. before the stock settles TO
basis calculated upon the outlook for the prop
ertv.
The appointment of a receiver became inevita-
BILE after the break with the bankers. In one
respect, this move has been beneficial The
property being under the protection of the
courts all creditors are equally secured; IL thus
becomes possible to raise money for the property
cheaply. through the issue of receivers certih-
Gates; instead OF having TO pay emergency
rate for 1t. in the desperate hope OF Tending OF
formal bankruptcy. The committee OF creditors
have taken over the financial end of the con-
Germ and whatever money it may be necessary
for the receiver TO raise will be supplied by the
syndicate. The first duty Is 70 complete the
construction OF the road. All parties are united
to the imperative necessity for this Until
the extensive and costly work OF construction
now going on Is carried TO completion. little can
positively be known as 10 the earning power Of
the system. When this earning power is de-
monstrated. the burden that the road can bear in
calculation.
II therefore follows. that plan Of reorganiza-
ton for the Third Avenue company must await
the completion Of the construction work or
its near completion, before IL can be effectively
worked out. Rumors OF the amount OF new
bond issues Of assessments on the stock are
az this time quite premature People in a posi-
ton TO know. confidently predict that with hon
est management. there win be an immediate
company.
As TO Sugar, the meeting AZ which the dtvt-
dend will be acted upon takes place wednes-
day. Saturday week ago. the stock sold be-
tween III and 1I2; yesterday it had fallen 20
9514. but in the closing rally IL bounded 70 par
again. The last time Sugar sold below par was
August. 1895 IN March OF last year u sold at
1s2. and saii 10 be going 20 900. but II
didn't The cry Of wolf in respect 20 the dlvf-
dend on Sugar has been In the pasr raised ~
often and so persistently. that the average man
has become sceptical about il as we're the
people in the fable. since. however the WOLF IN
the fable did come al last. y may Re thar this
Is the time when he will really come IN Sugar
To the discontinue Of the lambs therein Il
seems 70 be conceded that Mr.. Havemeyer Is the
only man who really knows. Predictions thar
the dividend will be six per cent or nothing
were referred 20 IN this column last week They
So long as the whole matter Is lu Mr. Have
meyers hands. II is blind guess'ne-as past sx-
perteuce testifies. That gentleman has a vav
OF changing his mind Unexpectedly
Surprising that the dividend r. really reduced
II Is impossible to deny that ~ VIII have a 10
pressing influence on other iudustriais T. 10
all very we'll % say that Sugar az par - ar
right. II IL does pay only six per cent. bur this
does not take into account the moral effect 81
the reduction People have come 20 regard
Sugar as safe for tts dividend. and all the safer
because OF the many false scares about H. no
matter what ups and downs the stock might
have In the market. AS this conviction has
grown. the number Of stockholders has increased
until they are said now % aggregate nearly
l@OoO Certainly to nine-tenths % these the re-
duction would come as a severe shock which as
suredly would make itself felt in a widening
circle.
The St Paul dividend is due the coming week
and II Is understood that II will remain I'M
changed at per cent. Another event viii be the
passage OF the Currency and RefundinS Bill
An increase In the currency output must speed
lily follow the enactment OF the law. Possibly
II is in anticipation OF this that the banks con-
tnue TO expand their loans freely. The sur
plus reserve by yesterdays statement was
brought below S14OO0OoO being about $40 O0o-
600 less than last year. II would seem. however
that this loan expansion has surely attained its
limit by this tiTne-ST4. 100000 in six weeks
Interest rates continue 10 rule low but money
seems to be working up in London This 10
due. IT is assumed. to anticipated Government
operations in the market. London has been
a sufficient buyer OF stocks to weaken exchange
Its buying did quite little In sustaining prices