The times. [volume] (Washington [D.C.]) 1897-1901, 1901-01-21

spending period of the previous year.
Railway gross earnings for the second
week of January as compared with the
same period OF last year:
st. l.. & San Francisco. So Inc .s93, 40l
Chesapeake Ohio....-..... 2sS.52l Inc. SO,5ll
Centnf OF Georgia l36,535 Inc. g, al
Louisville Nashville. 5si,5l0 Inc. 81, $50
southern Railway. G36,059 Inc. %, l5S
The recent buying of st. Louis and San
Francisco issues, which has been on a
rather large scale, is explained by the
fact that deal is contemplated by which
the property will pass into the control of
the Atchison. On what basis it will be
taken in is an unknown quantity as yet,
but strong syndicate in the interests of
the Atchison is now quietly accommodating
as many of the st. Louis and San Fran
cisco issues as can be secured in the open
market. 1t has always been conceded by
the operating officials of the Atchison
that that the one great mistake made by
the reorganization committee was the
selling of the st. Louis and San Francisco
Read. 1t was done simply because the
committee desired the ST. coo, 000 which
was the first net payment in its hands, to
be used in completing the reorganization
of the balance of the property. Edward
King, president of the Union Trust Com
pany, was the one powerful member of
the committee who insisted upon the sale.
Now that harmonious control of railway
properties is being brought about in all
sections, the field which has yet to be
thoroughly exploited is the Southwest.
The St Louis and San Francisco will, I'M
less something unexpected happens, be
found in the control of the Atchison.
Although there have been serious differ
ences between the promoters of the So
called St Paul deal, il was stated by one
of the highest railway officials in the
country Saturday that ultimately the
transaction will be closed and that
Messrs. Morgan and Hill will be the con-
trolling factors in the St Paul road. Not
withstanding the obstacles which were en-
countered, negotiations looking to a COM
pletion of the deal were never abandoned.
The most serious objection raised by st.
Paul stockholders was the question of the
amount of dividends to be guaranteed on
the common stock They maintained that
il was ridiculous to guarantee only per
ceIt-which is 1 per cent more than now
paid-when the earnings show that the
net income is about II per cent. Then
the question of what to do with the pre-
ferred stock came up as under the pro-
visions of the charter after 4 per cent
has been paid on the common as well as
on the preferred, the balance shall be di-
vided between the two classes OF stocks.
OF course, these we're serious barriers to
the prompt contamination of the deal, but
the men who were committed to the poll
icy Of bringing about the harmonious con-
troll of the great railway systems were
strong enough to ultimately carry their
point.
1t will be found that instead of the
American Smelling Refining Company ac-
quiring the business of NJ. Guggenheim's
Sons, the case has been reversed. AL
though the Guggenheims accept big
blocks of stock, both common and prefer
red, in exchange for their properties,
their representation upon the board of di-
rectors of the Smelling Trust viii be so
powerful that the policy of the company
viii be dictated by them. This is looked
upon as good point on the stock, as the
Guggenheims have been immensely sue
cessful in mana ging smelling properties.
A special meeting of the stockholders of
the Smelling Company will be held in
Jersey City on February 16 to vote on
the proposed increase of the present au-
thorized capital of s65 900, 600 to $10G, COO
900, one-half of the increase to be in pre-
ferred stock and one-half in common
stock.
The directors of the Colorado Fuel and
Iron Company, at a meeting held in Dem
yer SATURDAY, declared seMl-alnual
dividend OF per cent on the preferred
stock for the half year ending December
81 last. It had been the intention of the
directors 10 declare the full per cent
for the year in order to pave the way for
the placing of the common stock upon a
dividend basis. In view, however, of the
present unsettled state of the steel trade
it was not deemed wise TO pursue this
policy at the r.oment. Under the terms
Of the charter the company cannot pay
common stock dividends until the full
yearly distribution has been made on the
preferred for the current fiscal year At
the present rate of earnings the income
is equal to nearly u per cent on the
common stock after providing for fixed
charges. taxes, preferred stock dividends,
and setting apart a reasonable amount for
depreciation and improvements of plant