New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-03-25
financial.
The Financial World


the Third Avenue, notice that the tir,a ~1
come TO bull the market. The decIaratior - laa
this-that while they had been rnanuva-,-..t
buy the property. their attitude to the gsna..1 .
list must necessarily have been bearisb. -
sively at least, II not actively. When that -
ject was accomplished. IN was equally 70 that.
interest to swing in on the bull side The ,-.s
ers were not slow to take the hint; and siro.
Tuesday the market has been going uu IN ~
liveliest kind of way. London has helped. ~.
public seems 10 be coming In; former bears hav.
turned bulls and unless we get twist in r,oro.
which yesterdays bank statement seems >,
show is not nkely-the market promises 70 ga-
It's spring rise without waiting for the san n
rise in the trees.
The purchase OF the Third Avenue wa, a,
clever a piece OF work as Wall Street has ssen
in a long time But a pretty high price had >,
be paid and it was just this which fooled peouIa
When the Metropolitan officials so strongly uro-
tested that they would not take the road a, +,
gift it was proof enough that they We're afta-
it, busy men do not go out Of their wav m
make frequent public declarations about soma.
thing they have no interest in. II was no,
therefore these declarations which deceived.
but what did deceive were the indisputable facts
which President VreeIand cited IN respect N
the crushing financial burdens OF the Third
Avenue, the small margin iciL lVE Autufe CeVei-
opment Of the property, and the way the Metro
polItan had II everywhere corralled by thanking
lines There was no disputing these PROPOSE
tions and I'm view Of them it seemed that the
Metropolitan would be able In time 70 take The
road for It's debts as Mr.. Gould used 10 ex
press it, That they should come in with rush
and pay between five and six millions for con-
troll of the property subject to these debts and
with the necessity for making more debt in
order to complete unfinished wOrk,-this was
total surprise.
The Street is now asking how the Metropolitan
is going TO finance its new elephant Does il
mean more bond or more stock issues? 1t must
be one or the other. Intent to purchase the
Third Avenue was vehenently denied and the
purchase followed: rumors that a stock issue is
to be made now bring out threats Of the grand
fury: hence-inferring what is 10 be by what
has been-a stock issue may be looked for.
Take IL all round, and II will be noted that II
IS rather hot in the vicinity of the fractions az
this time. Altogether too hot for the average
trader, who seems to think il is better 70 leave
them for the big professionals TO handle. and
60 off where he is less likely to get his fingers
burnt He Is vastly safer with the regular rail-
road stocks, and in these the activity is great
and Is growing.
The slowness OF the movement Of Union Pa
CffC was reIeTreU 10 IdSI week, WIN the dClec
comment that It would get there all the same
there being a price of so. which Is an invest
ment figure for 1t. Anything above must de-
pend upon speculative considerations 1t Is
asserted that Union Pacific was kept so long
around so by the efforts of pool. who were ac-
cunulating stock and have now got what they
wanted Whether this be true or not have
no straight information: and il don't matter
whether IL is true OF not Union Pacific stock
will go I'D because the condition CT the property
fustiies higher prices for H. If a bull pool is
operating it only means that the rise viii be a
little faster than it would otherwise be; but It
will go up anyway.
In respect TO AtchisOn. may quote some
remarks about 1t very pertinent TO its future:
The question used be whether AtchisoH could pay the
full interest adjustment bonds Last year the
problem Atchsou could 4c on the pre-
ferred stock question this Is how much IS Ach
ison going TO earn on the This Is the first
time tina. there ground for bull sp1
laton in Atchison common
This column first started 10 bull Atchison Sc
curities with the adjustment bonds. when they
were selling IN the sos II then called attention
TO the first mortgage bonds, when they were
quoted around 90. and predicted that after they
went above o. their advance to par and above
would be more speedy than their rise from w
to %. Next, as the earnings OF lnc PEuPVANJ
continued to grow. IL drew attention 10 the pre-
rerred stock selling in the 30s- When this stock
rose to 60. it seemed that top had surely been
reached, but the enormous earnings OF the sys-
tenn, and the good results coming from the pre-
vious liberal expenditures in building up 'he
property. carried the preferred stock forward
1t is now calculated that AtChison will earn
this year the full per cent on the preferred 10
which 1t is entitled, and will have a good sur
plus over for the common stock.
The latter has been purchased lately in large
blocks. II yesterday made a record price ABOVE
%. There is the best Of reasons for stating mat
some of the most conservative fnanciers IN tne
Street have been buying Atchison common lOi
investment. They believe that the outlook lO'
the growth of the AtchisOn system justines 'n7
Investment and that even in the immediate nut
ure the stock will sell well into the 3tS anu
mHntain itself there-say. about 80 10 90 VI
course it is not TO be expected it will go tnele
tomorrow or next day II will work up VIII
occasional setbacks: and while il IS WorAlAs
up. any desiring to trade in the stock VIII
have a chance to take profits on the rallies an"
get in again on the reactions: which IS ahoUA'-
way Of saying that hereafter Atchison common
will be a much more active trading stock tHAH
II has been.
Among the Eastern. trunk line StVVA
Pennsylvania and the b. & o. stocks have N
IN volume OF trading and in strength Inc P's-
ton Of the latter stocks at this time IS hsiN'
speculative in that they have some or the Nus
powerful speculative interests in the nna"O'
world operating in them. These men are o''-
they don't hesitate 10 discount the future as I"
presents itself 70 them; and when they see ~
traffic returns of system rolling no IN ~
largest items-as in the carriage Of coaL VIM
is sure Indication of the general ACTIVITY =