Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1901-04-14

kindly permitted the Register to pub
lish the following circular, received late
yesterday evening from Messrs. Ash
well & Co., their New York correspond
ent:
I'VE beg to call your attention TO the
so-called Southwestern group OF rail-
road stocks. The unprecedented high
prices and rapid advance Of many rail-
road stocks in the present market mas
been the cause of many inquiries made
concerning them and our opinion on
same. In reply, we would say that
some stocks may be selling above their
intrinsic value, but most OF the high
priced stocks are being put on a basis
which make them an absolute safe IN
yestment and will go into strong boxes
and disappear from the street. This
circular is too short to go into the de-
tails and causes OF these changes, Dut
we merely give an outline.
Some two years ago the large CAPT.
talists of this country arrived at an
understanding by which they might ac-
Quire a joint controlling interest In all
eastern lines, including the anthracite
coal properties. This ownership en-
abled them to maintain rates and cur
tail expenses, which was at once re-
f1ected in the earnings of the various
companies, although only a few OF the
economies have as yet had time to
show their effect. After acquiring prac-
tically the control of the eastern trunk
lines, they arranged to gain control OF
the roads of the middle west n the
Paciics. The maintenance of rates and
the economies effected, have been the
great factors in the wonderful increase
In the earnings OF the Northwestern
and the Pacific systems, as for example
the Atchison.
After this was we'll under way, their
attention was directed to the South
western group, naA.eiy, Missouri fdolic,
the Denvers, Chicago & Eastern Illi-
nois, Missouri, Kansas & Texas, st.
Louis & Southwestern, st. Louis & San
Francisco and Texas G. Pacific. This
group practically controls the vast rail-
road mileage south and southwest of
st. Louis, the only competing lines be-
ing Southern Pacific and AtchisOn,
which are controlled by the same CAPT.
talists. These roads, we believe, were
the last to be brought under this com
munfty Of interest, and the arrange
ments are very near completion by
which these systems will practically be
under n management There are
three or four so-called syndicates hand
ling various properties but practically
the same individual m~illionaires are in
fQrGCfpd in oil nf fbopa Tho CO oo11ad
Gould syndicate operating in the
above group includes the Rockefellers
and most of the other large interests.
The prejudice against the could
properties no longer has any founda-
tion, as Mr.. George Gould is associat-
ed with the richest railroad men in
the country and is recognized as much
a builder of railroad properties as the
Wanderbilts and others.
Taking the above facts into consid-
Grafton, which were the principal
causes of the great increase OF earn
dngs OF Atchdson and Missouri Pacific,
there is no reason why the same man
agement and methods in operating
railroad properties would not show as
great Improvement in M. X. & T., 7.
& p, st. ~. & S. w, st. L.. & S. F..
AN vi II plClSIlcu SUUChb OIL
the last named companies range from
IS to 81, earning the full 4 per cent
or D per cent, common stocks ranging
from u to 40, earning from 2 to 4 per
cent, as shown hereafter. Under the
conditions indicated above the COM
mon stocks should show from 6 to 10
per cent earned as o as the plan is
under full operation and the prices ad-
vance from 80 to 40 points within a
year or so.
Missouri, Kansas & Texas. The
earnings of this road based on the first
nine months of its fiscal year (all fol-
lowing estimates being based or the
same period Of time), shows an in
crease In gross earnings over last wear
or l9.7 per cent with the per cent of
operating expenses to gross earnings
at $685. per cent, and will leave a sur
plus to be applied to dividends sufic-
lent to pay the full 4 per cent on the
$l3, 900 900 preferred stock, and Q per
cent for the $50, ISL 900 common. or
over IL per cent on the preferred. This
does not include any estimate made
on the earnings Of the Shreveport.
sherman & Southern, whose entire
capital stock this company owns. and
which road is also showing very large
increases in earnings, being the con-