New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-11
fndnri1l.
The Financial World.

looked as II IL would advance further Th,, =
did. The forward movement continued tbrorzs
the first half of the past week. Realizing g.
then checked it's further progress and caD.as
some reaction. The net result was that closf,~
prices yesterday were about the same az ~
week before for the majority OF stocks; WIN.
a few were either higher or lower. Most o. ~.
traders were dsinclined to carry stocks ov.-
Sunday and Monday, fearing there might -
some bad foreign news 70 adversely affect prices.
and besides this. Tumors became current q,
Friday that the bank statement would be un-
favorable
When the statement came out yesterday 4,
caused momentary start by the Immense in
crease in the loan item. no less than 81. COCOON
"a figure almost unprecedented. The usual
varying conjectures were INDUCED in as to the
cause Of this great expansion. with the usual
unsatisfactory results. The deposits Increase
nearly S19,OOO.OOO; and the surplus reserve d.
creased not quite S3.OOOOOO. II now stands .
little short OF S2S.OOOOOO. against S35.JOOO O0a
year ago. One Of the theories OF the cause NJ
the loan increase is that il comes from a shin
ing Of loans from the West 70 the East Vhs,
money most stringent here it was compara
lively easy in the West, which loaned largely
in New York consequence. 1t is now high
er in the West than here. and the loans have
been shifted to get the cheaper rates Another
Z
pansion OF commercial credits in preparation
for the spring trade. Whatever the cause. II f.
certain that the borrowings have so far not
worked to tighten the money market. for It has
been easy all the week at low rates II ia
thought the ease will continue until we ger
nearer the period Of April settlements These
are large, particularly in New England.
and their effect may be TO tighten up rates
again. temporarily, TO 6 per cent or 50.
Two stocks. hitherto non dividend payers
have been promoted to the dividend paying list
during the week They are Reading first pre-
ferred. and Union Pacific common The time
when Reading paid on any but a bond obliga-
ton is so far in the past that the memory OF II
has almost faded away. The Financial Chron-
tele thinks that the company will be able to
continue the dividend Like the Union Pacific
1t is semi-annual, at the rate Of per cent per
annum. The Chronicle analyses the Reading
accounts, and concludes that the surplus left
after paying fixed charges Is large enough to
make the dividend safe; and it points 70 the
fact that the company has now a conservative
management. which inspires confidence in the
outlook for the property There are S2S 100000
of the stock, 8 per cent on which would cal for
$4,000. The surplus over fixed charges for the
six months ending December 31st, was in excess
of 81 300. 900. The stock was selling between
81 and 50 when the dividend was announced 50
its declaration was pretty we'll discounted.
price Of 60 is fair for it,
The Union Pacific dividend was more than
half expected; but for all that it is fact that
the largest buying Of the stock for the ac-
count OF insiders was not made until the stock
which had been selling several points lower
had gone to 90 Why it did not start when the
price low in the 4Os. was. il may be sur
missed, because the full statements which were
al h6fO he Of
completed until few days before formal ac-
ton was taken upon them. After the dividend
was announced. there was good deal Of selling
of speculative stock. which had been held in
anticipation of the time when the first dividell
should be declared This went TO insiders.
Nearly the same thing occurred when the first
dividend was made the preferred stock. That
also at the rate of per cent, subsequently
raised to the full f per cent There also
some selling caused by uncertainty as 70
whether the dividend Of IL per cent was or was
not to be considered semi-annuaL The direc-
tors did not formally declare it 10 be such. and
the Street seemed 10 be uncertain the point.
To settle the matter, inquiry made OF one
of the influential directors of the company. This
was his reply: TT is Indifferent whether the
Board formally said the dividend declared was
semi-annual not. We should not have start
ed dividends on the stock at this time unless
tinued. The statements submitted TO the Board
showed that we could lose S3,5OO.0O0 from pres
ent earnings. and still pay 4 per cent the
common stock"
This is good enough for anybody. Il has al
ready been said that insiders took all the specu-
lative stock sold around 81. These people do
not buy for two per cent turns; therefore the
small trader who buys expecting L. P. common
will at once run UP three or four points may get
left To insiders who have their line in thou
sands, II is of little account whether next week
U. P. common sells at ~ or -. They know
that a stock on which 8 per cent is a certainty
with the future growth of the property assur-
ing points above that. is worth 80 TO hold for
investment. Above 60 the speculation comes in
For people who can afford to wait, the B, & O
stocks will do to buy, not on rallies. but when
ever they drop OF in weak market. All trunk
line property is on the rise. The consolidation
Of interests to a degree never before known, and
only possible in these days of vast capital; as
well as the enormous business the roads are
doing will work out big results this year
Third Avenue stock has bObbed about in
way suggestive of bitches in the carrying out o.
the programme arranged. The rumors are that
the people who are TO finance the company, In
sisted on having control OF the Board Of Direc-
tors; but against this. certain stockhoIding In
terests strenuously objected. Now a dispute OF
this kind usually ends IN the men with the
money telling the men without it. that if they
want to control the property they can put up
the money themselves When this stage IS
reached the dispute ends; and it reported
yesterday that this particular dispute had end
ed and the deal would go through satisfactorily
the coming week.
announcement has bsen made that the West