The times. [volume] (Washington [D.C.]) 1897-1901, 1901-04-21
going into MILLER syndicate" in the
hope of getting out before the public dis
covers the fraud.

going into MILLER syndicate" in the
hope of getting out before tie public dis
covers the fraud.
Burlington stock on it., Individual merits
is not worth 1916. the hIsn price reached
during the week. stu less is II worth
the 200. which Mr.. iilli proposes TO ray.
1t is a fact easily %. ascertained from
the records of the 'upany that 1t has
never earned enough money to pay what
will be the interest on the proposed issue
of bonds to take up the Burlington stock.
Mr.. Hill's proposition. as the street mas
heard it. is that $500 in per cent tonds
shall be paid for one share of stock MT
Morgan is to take large block Of the
bonds at par, thus fixing that Price as
the lowest at which it is hoped they may
be floated 1t will be seen that this means
2Hl for the stock. The net earnings OF
the Burlington for 1900. the best year IN
its history. were Sl6.495O0O. The liked
charges were s., SEQ, 900, leaving a surplus
for the stock of S.92S, 600. The capital
stock of the company is in round num-
bers $4,000, 600 When this stock is taken
up by Mr.. Hill the bonds to take its place
Will be about $40, 900. The interest on
these bonds at per cent Will be SS,SooooO,
This exceeds the present earnings OF the
company by nearly million dollars. MI.
Hill, therefore, will be Obliged to get nuch
more money out of the Burlington than
il ever earned before, or else make the
Northern Pacific revenues pay for its
deficit. This is not a good reason why an
outsider should buy Burlington stock;
1ntre can ne no uOuDl lHdl MI nm
sell out his bonds as soon as possible.
They will not be necessary for the con-
troll of the Burlington. A knowledge OF
these facts is, of course, responsible Tor
the failure of Burlington to advance TO
the price Mr.. Hill will pay. There are a
great many holders of the stock that
would rather take 1870. or better, now than
take the chance of being in the rush TO
sell the bonds later. Nevertheless. the
stock is likely to squirt to 200 at some time
before the deal is completed.
There is reasonable expectation that
the various Gould issues Will have gOou
further advance this week. IT is proba-
BILE that there will be developments In the
Gould consolidation deal before long. ana
hints as to it's character are already float
are excellent reasons for optimism re-
garding some of the securities. on their
merits as investments simply. 1t is learn
ed for instance. that Missouri, Kansas
and Texas preferred is to be put on
per cent basis. This statement was made
by large holder of the stock last weeE
to a Washington investor and may be
relied on as correct.
A large Boston investor. who is buying
Atchison preferred on information as to
the present condition of the company,
made the statement to local capitalist
a day or two ago that there is no more
conservative investment in the railway
list He does not expect it's advance to
around 100 in time, perhaps during the
present year. The common seems likely
to have a further squirt the dividend
meeting of the directors is to be held
shortly and there is fair prospect of the
rate being made per cent annually.