The times. [volume] (Washington [D.C.]) 1897-1901, 1901-03-03

developments of the week have all beer
good and some of them most important
The net earnings statements for January
Tor instance, are excellent almost with
out exception. some of them showing I'M
mensc increases over the same month of
last year Business generally is large and
expanding. The trade reports are most
favorable.
There was at first much uncertainty "e-
EarGlng the terms of the steel deal and
tendency to regard them as unfavorable
toGthe public holders Of the old securi-
ties Later in the week q saper view of
the outlook for the new company and for
the stocks, Old and new. was developed.
Considered intrinsicaliy the new seCuri-
ties should he worth more than the old.
There is a large amount of them. of
course. hut at the same time the com
pdnN VIII be able to earn more money.
Considered intrinscally. the old securities
were, ana are, worth more than they have
eE eI sold for. The earnings have been
very large. and the dividend payments
much better than was expected at the out
set On a basis Of earnings and dividends
ana considering the plenty and cheapnesS
OF money, these stocks logically should
have sold. preferred and common, at par
and above. This was too much to expect,
however. ana a reasonable price might
have been par for the preferred and from
81 10 50 for the common during the first
tNo years OF the existence of the com
panies Considered technically. the stu
alton Of the securities of this group is
excellent. 1t cannot be doubted that the
underwriters of the surplus of the new
securities Will wish to sell out in the near
future. no matter what the ultimate pros
poets OF the United States Steel Corpora
ton are. They will buy with the purpose
only of selling out in a very short time.
They Will borrow money to buy with.
This condition OF things has always
meant in the past that the prices of
underwrittcn securities has advanced. for
the benefit of the underwriters. 1t is ut
lnnpSgihlA tn sell new ST. Ks
declining market to the public.
y month ago the public was most op-
tiTnistic regarding the outlook for the
lily and advanced in price. Later the pub
lie changed its mind and sold out largely
M prices not nearly so good as those at
which il bought As to this there can be
but one explanation that really explains.
There is very little doubt. indeed that the
insiders worked the public, as they were
able to do easily with their advance in
formation. This is rather a diScOncerting
statement to make, but the public must
always be at this tremendous disadvan-
taee in such deal and it is hardly to be
expected that the insiders viii not take
advantage of 1t when this means money
very easily made. The only consolation
in this case. apparently, is that the people
that have held their securities are likely
not to suffer in the end Mr.. Gary and
many other insiders have made the def
mite statement that the outlook for the
securities OF the new company is good.
IL is probably a pleasant break in the
gloom of the holders of these securities TO
know that Mr.. Gates has been a sufferer
also, Mr. Gates has come to be thoroughly
iisliked by the public for his brutal ma
nipuiation Of the market for his private
ends There are excellent reasons for
that the Morgan clique bar
pors much the same sentiment toward the
gentleman. From the most reliable
ha str hat ~ saff
was at first unwilling TO come into the
lew steel combine on the terms offered
lin; that he was finally forced to the |
erms against his will, and that, further |
more. he began to play big campaign in |
he steel securities in the market ana got |
N the wrong side and lost an immense |
un of money. This story may be ccn- /
ldered by some almost too good to be |
rue, but the evidence is of a most con-
incins kind.
The better feeling regarding the steel
ecuritles Is communicating Itself to the
ntire market, very naturally, as the I'M
ertainty here has been one of the few
LIQUIDS on an otherwise very sunny out
,ok- But in addition to this and to the
Nceiient general business situation there
re a number of very important railway
eals in contemplation, or rather now I'M
ergoing active discussion, that are al
lost certain to be big stimulus to the |
uying of securities. Further than this. |
here are also developments of Importance
several of the Industrial companies out
de of the steel group.
At the moment. the most Interesting
lmors are in relation to the Southern
ailway system. The meeting Of the di-
-ctors OF this company to consider the
Vidend on the preferred stock is to oc-
m tomorrow. Whether the new divi-
md rate will be or per cent, the pub
, does not know, as yet, but that it |
i'll he advanced, there is no question, APP
RI It'd 4 - |
fred stock is in reality only a minor |
with the big people that
ave been buying the stock recently in !
ich vast blocks, and are now selling il I
lly to hold the price down a little long !
8. IT is whispered that the Southern will |
ana probably at no very dis
mt date. control railway mileage in eH-
.SS of that now controlled by the Penn |
'lvania system The Pennsylvania has
,mething like 1900 miles under its con-
oil and the Southern, 1t is said, will have
least 1900 miles. one story is that |
le Plant system Is to be taken in. An |
her gives 10 the Southern the Louis
lie and Nashville Another still is to !
le effect that the Atchison and the St |
outs and San Francisco are to be alb
,rbed. The Southern securities have |
zen advanced during the week to the |
CHEST prices ever reached by them, the
'mmOn To- above . and the preferred
sarly To 81 1t IS predicted. however,
lat III. common especially viii get |
uch higher In the near future and IL |
e developments expected by those that
axe the predictions materialize, such |
l advance is well nigh assured.
Regarding the outlook for St Paul |
ers is also much optimistic prediction. |
this case the earnings of the company |
nd and the rights are alone respon-
BILE for the hopes of the bulls, but these
q quite sufficient to inspire hope. There
some talk of per cent dividend rate, |
Ia f.4l al
Iely. however. that regular dividend | ,
. per cent for the half year will be de-
AIRED, and some extra Burlington is be- {
g bought by important people, an; the !
cory is that these people expect this ,
stem to take the place of the st. Paul
a trans-continental deal of great inn
iTtancc The Atchison securities have {
I'D their own fairly well, though there I
clique. supposed to be headed by MIR !
ates. II is understood that this clique l
as so badly hurt by its operations in |
e steel securities that it was forced t. {
aliZc in Atchison common and Union | !
1citic. .
The interest in Sugar Refining has been
eater this week than at any time here | 1
fore in recent months. The story OF a | !
opposed increase in the dividend rate I
# the stock is one cause of this, but {
uch more attention is paid at the mo-
ent to the assertions in good quarters | 3.
at there has been an amicable arrange $
ent effected between the trust and the q
Sugar has already advanced /
n points and it is said that 1t is likely | :
get ahead another ten points before the I
d OF the coming week.
The deals talked of by tho friends of l
estern Union ali refer directly or indi-
city to the relations of that company !
IN the Postal one story is that a |
Irking agreement has been reached
lich will DE Of great peeuniary benefit \
both. This stock has been held up well
I.n.t L. |