The times. [volume] (Washington [D.C.]) 1897-1901, 1900-03-12

tainIv omen 70 the objection that il puts
premium on manipulation, and bear ma
nipulation OF the rankest kind. at that IL
is Senator Ford's Idea 10 arrive at the
value of franchise by adding together the
market value OF the corporation stocks ana
its funded debt and TO deduct from TINS
total the asseased valuation OF its personal
property end real estate. II this theory Is
nut into operation 1t will make big noles
in the pockets of local corporations. Ihlhk
OF what Will happen to the Metropolitan
Street Railway for instance. ms conpa-
nys s45. 000, 600 stock is now worth more
than SO 900 COO II has bonds aggregating
more than $40. 900. 600 and floating debt OF
certainly 81. COO 0oO Its real and personal
pruperty is not assessed at more thah Si",-
coo. 600. Therefore. this new tax VIII mean
the payment OF 81 900 600 more than the
Metropolitan is now paying into the puohc
treasury And 81 000, 900 is more than : per
cent on Metropolitan stock. i this connec-
ton II is to be remembered that Metro
noli,sn tx the most opulent Of all the local
concerns In the case Of Brooklyn Kappa
Transit this tax will be more than hard-
ship.
The recovery Of Chicago Gas during the
last two DAYS OF last week was one OF the
most noticeable features OF the market.
The break in the stock was hne example
Of hear selling purely 1t is probable that
the statement from an officer OF the COM
many (after a succession of hctions by
others not oficers) that the actual earn
ings of the company were more than
per cent on the stock last year. II was
said that heavy expenditures Tor improve
ments were made and charged TO operating
expenses SO that the small net earnings
showing made was misleading when COM
pared with other statements
One Of the important features of the
annual report of the Pennsylvania Rail-
road Company is a notice TO stockholders
that they will be asked a year hence TO
authorize an increase OF the capital stock.
The present authorized issue is about Sl5o,-
OO0, 600 and In round numbers the present
issue is about $142 100000, leaving only
s.. 0OO, 600 more to be issued to exhaust
the limit During the administration OF
President Roberts the stockholders were
asked to authorize an increase, and they
then extended the authorized capital TO
the amount named above. The report lays
especial emphasis upon the large eXpendl-
lures which will be required for extensions
and improvements. part of which must De
paid for out OF current income and por-
ton by the increase of capital. SO much
stress is laid upon the company's require
ments that the Inference may be drawn
that the dividend rate will not be in
creased. While the net earnings promise
to show a large increase this year. par
ticularly from the advance in coal freight
rates. the necessities of the company for
improvements and greater dividend re-
quirements owing to the increase OF capt.
talization will be such as TO make II unsafe
TO establish higher rate of dividend. II
| there is to be a further issue of stock it
would appear TO be impTOvident to put the
| dividend upon too high basis. II
the earnings should warrant a more liberal
distribution to stockholders an extra divi-
| dend might be declared. and this would
not commit the management to the main
| tenance of a higher rate than per cent,
| which is fair rate to the investor under
present money market conditions. com
parative statement of earnings and ex-
| penses is as follows:
Gto-s earnings SO 80 SCI Inc > 3l9.147
| Expenses ............. J0S4i.C3 Inc. ,s}4 6ls
Net earnings. 22.j'r.S5l luc. l,ie',t29
Net incomc............. lG,is.,4sG Inc. 20, ~
| 1t appears. therefore, that while the
| great traffic which the year of unusual
! prosperity brought to the road increased
| the gross receipts 1919. 247 the net in
come was only enlarged by $25S, ~ The
| current wear will no doubt show great
| Improvement over 1899, as the company
will be better supplied with equipment and
| higher rates will lie obtained. The pros
pect of further stock allOtments should
| help to sustain the stock in the market.
| The recent allotment was regarded
| equivalent TO cash dividend of per
| cent on account of the value OF the rights
| to subscribe TO new stock at par. This
| privilege in the future will also be OF
value TO Pennsylvania shareholders.
Ash for Hcurich'S il YOU want pure beer.
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