New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-04-08

The Financial World.


gains. some have been steady and here ana
there losses have been recorded There ~
some recession yesterday when the bank STAT
ment came out 1t was disappointment in N.
large increase in loans 1t recorded. and IN. LA.
in surplus reserve. which now aggregates aho,,
SS.OOO.OO0 There is. however. no trouble IN ,ha
money market. loanable funds being abundan,.
and unless the stock market runs up too fazt
and spreads out too widely there should be no
trouble in that direction
A leading incident OF the week was the further
advance In the B. & o. stocks and the an
nouncement OF the issue OF the $4,000 a,
common stock hitherto held in the treasury
The subscription price is 80. and the issue has
been underwritteu. The total authorized amount
of common stock is S45OoOO00 and it is now
virtually all out. The significant point about thi,
issue is the underwriting price. Only few
weeks ago. a price OF 80 for B. & o. common
would have seemed extravasant; nevertheless.
here find a considerable block OF II under
written that figure. There is only one inter
probation of that. The common stock Is soon
to become dividend payer. Underwriters at
50 would not be found for il unless they knew
what was to be done; and as Ii may be assumed
that these underwriters are persons connected
with the company Ii is also TO be assumed thar
the dividend arrangements are practically In
their hands. The report is that the dividend will
be declared in July; and it stipulated that the
new stock shall not receive any dividends which
may be declared prior to the time at which II
must be fully paid for. which is October next II
looks as if the report OF July dividend were
correct. The next question is as 10 the rate
The preferred is a fixed 4 per cent stock and
to pay this calls for 81 100000. The rate at
which the earnings OF the company are growing
would make IL possible to declare dividends Of
6 per cent on the common. But IL Is perhaps
too much 10 expect anything az present over
per cent per cent trunk line stock Is a
pretty good thing We see what the stocks OF
we'll established lines paying this amount sell
FOR. OF course against the B. & o. there Is the
fact that il has been reOrsanized II has TO bear
the odium of past bad management, which
wrecked the property; but the b. & o. Of to-day
is in entirely different hands; it's relations with
other great trunk line systems are different;
and the causes OF its former troubles. which
largely grew out of those relations. are Eff
fectually removed. The money the B. o.
earns to-day is as good as any other companys
money. and rs just as good for dividends and
interest as their money. The dividends viii
make the price for the stock; and the predictions
attributed to Mr. Hill and his intimates as to
the price b. & o. will sell at within year are
so much above par that one hesitates TO mention
them because they would seem as absurd now
as a prediction of 50 for the stock would have
seemed some months ago
Next 10 B. & o. Pennsylvania stock has been
one OF the most active in the market Some IN
terest has unhesitatingly taken large amounts OF
IT, undeterred by the known fact that much OF
the stock which came the market was out on
bankers boxes. What there is behind this large
and confident buying, at prices which look
aLpear at this time. but probably will later
Something seems to be up in Missouri Pacific
Rumors have been current that new deal was
on in connection with the NJ. X. & T.. but peo-
pie connected with the latter know nothing
about il Said one of these: We have heard
nothing except that Standard Oil interests are
buyfng Missouri Pacific: but those people are
such bold specuIators that we are prepared ior
ANYTHING" The people referred Ia are the con
trolling powers in the NJ, X. & t. road ana
have been for many years They may nave
some new scheme on hand. based on the s'eadiiy
increasing prosperity of southwestern proper
ties; and the scheme nay involve the acquire
ment Of a considerable block OF Missouri PACING
stock. This. however. is all surmise; and is not
given for more. thar il is worth: but there can
he no mistake about Missouri Pacific bonds be-
ing purchase. These sure thing, and no
one can make a mistake in buying them eithes
for speculation or investment The bonds re-
ferred to are the two classes of collateral
trust IS.
Union Pacific crossed 80 on Wednesday. Later
il fell back a little. There was naturally sooa
deal of stock for sale at a price which had been
looked forward to "a long time; and beyond
which IL was considered that the quotations left
the sure basis of investment return and oecsms
more or less speculative. Nevertheless, we ex-
TIA in
crease in the dividend from to per cent
passes from probability certainty Northern
Pacific common 1t is repeated will soon De put
on a 1 per cent basis. 1t got up TO o. the other
day but did not hold. IL II be true that per
cent is 10 be paid the stock will certainly Dc
rushed up 10 20 or Whereabouts. The Atehissns
have been steady, but have made no progress
Some London selling in the latter part OF the
week depressed more or less all the PaclAe
stocks.
Great disappointment felt at the an
nouncement by the Federal Steel directors that
there would be no dividend on the common STOCK
this year. Much sharp criticism was heard De-
cause the announcement came en- the heels Of an
advance in the stock largely due TO purchases
made by people who had been led. by recent as
surances from leading officers of the COMPANY
TO expect something different The excuse tna'
the company could not declare dividends this
year because the constituent companies Gld nov
turn their earnings till January Isl instsaA
OF December 31st. was generally ridiculed a.
mere trick of bookkeeping. II is not pleasant
telling disag reeable things of ones friends on,
| is a fact that the comment of the Street on 'h'
whole business that the house OF Flower o.
! Co. was throwing away its reputation ProoaoN
no member OF the firm had any say about inc
matter at ALL but Federal Steel 5 as5eei-'s-
l nd he nafurallE cnarScs