New-York tribune., 1900-12-16
hmaufiaL.
The Financial World.

puts the Erie in a stronger position than il ever
was before but il solidifies the anthracite stua-
ton in the same degree. BY the new arrange
ment the Erie becomes. or viii become. coal
owner as well as a coal carrier; and the con-
struction Of new coal carrying line which
would have made serious trouble for all The
others. is averted. The Pennsylvania Coal Com
pany was the hacker OF the projected line to
Kingston; with the purchase OF the, coal COM
pany's stock all It's rights and property pass to
the purchasers; and will be by them turned ovs-
20 Erie control The Erie has carried the coal
OF the Pennsylvania company; it will mina
as well as carry it, and the danger OF losing thi.
large traffic Is removed by ownership.
II would seem that the anthracite industry IA
now placed on a basis which secures II from
ali disturbance outside OF those mutations du,
to the state OF general trade. II was logical
therefore that as this scheme became known.
there was increasing speculation In the anthra-
cite stocks. As matter Of fact there are only
twos OF these now which might be said 10 be
on the list OF speeulatiVes. viz, Reading and
Ontario and Western LackawaEna has almost
disappeared from the market into fnvestors'
boxes; Jersey Central Is so blocked in the hold
ings that II can be scarcely said TO have a fres
market: Delaware & Hudson Is scattered
but there is not enough afi0at in the Street to
make it a trading stock. Thus are brought
issues.
The advances in the latter have been sharo
Reading first preferred seems to be the favorite
There arc only S2S,OO0O00 OF ii. The 4 per cent
dividend calls for only $1.120,0OO, and Reading
is earning about per cent on it. The argument
is that with so small stock, standing next to
the bonds and with the anthracite properties
bound up together they now by mutual
ownership. Reading first preferred may be
sidered a sure 4 per cent stock AS TO ontario
Western, that ought to be and suseIy will
be- one Of the most active trading stocks in the
coal group; for it is low priced and there Is
perhaps no anthracite property in which the
possibilities of future development are greater.
The purchase OF the Pennsylvania Coal stock
was announced in the. Herald Tuesday
morning; but as a matter Of fact it had been
given out In the Street in a very positive way
the week previous a news slip: but this only
brought out the customary crop Of official de-
malls. In truth. the thing was not really closed
up at the time of the newspaper announcement.
This. however, is small matter. The thing is
done. which IS the real point Probably. it viii
take the general public week or TO under
stand the real Importance Of the scheme to the
Erie. The small minority Of people who sse
quickly and move quickly on what they see,
started in early to buy all the Erie issues The
buying started first, seemed TO from the
movements the tape. in the Erie prior lien
and general lien bonds-the latter being more
particularly referred to in this column last week.
These bonds closed at SO yesterday and the
claim is made that though they will not go uN
with any rush. they will surely get above 30
before long and will anchor above 80.
The rush that did occur was in the Erie stocks
An eminent banker, very conservative. said on
Friday, Il am not in this scheme. but from
7 Of I bfvL- Fha Ia In
preferred stocks They viii become dividend
payers" There are two classes Of preferred-the
first little short Of S43,OO0OOO; the second.
S16OOOOOO. The Erie is earning about D per
cent on the first preferred: and now that the
menace to its coal traffic is not only removed.
but considerable addition to its revenues from
coal mining and ownership is secured, there
seems no reason why the payment Of dividends
on at least the first preferred should be further
delayed This will be good news IN London
where the Eries have always been held largely
1t was doubtless because % the big rise in these
old favorites over there. that the London mar
ket for Americans got into state OF wild ex-
element yesterday.
After the Eries had had their and quieted
down a little which they did or Thursday, the
other departments Of the market put on bull
boots and started forward. ST. Paul led the
way 1t Is rrmOred that an extra dividend
PENNSYLVANIA fashion, is coming. Anyway, the
stock, which was 1854 on Thursday. closed at
1872 yesterday, and had been a fraction or so
higher. One of the reports about the company
ia that Mr. Hill will enter the Board He has
already gone into the Erie. with other repre-
sentatives Of connecting systems After ST. Paul
the Pacfics and Atchison came TO the 'front.'
again. They have been lying quiet for some
time, with some reaction from recent hish
prices. The Wall Street public. having got used
to seeing them quiet and steady after their reac-
ton. was looking for another forward move IN
them; and as soon as the big orders appeared
the rush of the smaller men started. Northern
Pacific went above 76; Atchison preferred above
Sc and Atehison common 10 AZ. Union Pacinc
went to "a which was it's high level before the
last reaction. The same buoyancy EXTENDED
through the list.
A revival of the stories that the Wabash VIII
also be taken into the family OF the big Eastern
systems has followed the appearance or large
buving OF Wabash debenture bonds. IL mas
long been the argument Of some shrewd oo-
servers that the Wabash, occupying a solitary
position among the greater systems surrounding
It, would have to be taken into the fold by them,
and thereby removed possible disturoer OK
rates.
southern Railroad preferred is moving 1T
tie slowly and until yesterday not much ap-
peared to be doing in 1t. Yesterday the stock
got above 50. while the common crossed 80
the highest price ever made for 1t. No one need
be afraid il the preferred does move up slowly
when he reflects that II the earnings OF the
company this fiscal year turn cut what ths
managers estimate they will. and as they are
now running. the full 3 per cent viii be earneu
on the preferred and a surplus over. This Win
working expenses at 90 TO 20 per cent. because