The Washington times., 1901-10-10

doubt that it is a bull factor. The street
| learned that a Standard OIL man has been
| appointed on the board of directors of the
| Union Pacific and began to talk of the
| significance of this fact in connection
| with a probable st. Paul-Union Pacific
| deal. The Standard Oil people seemed
| more inclined to favor Amalgamated Cop
| per, and it looked to some as if they were
| buying the stock. a number of good ran
| way earnings statements were pubilShed.
! The recent sellers of Brooklyn Rapid
| Transit became buyers and there was
i good inside buying in Norfolk and West
| ern- There was persistent rumor thaI
| an extra dividend will be paid on PENN
| sylvania stock London was a buyer OF
! American stocks. Money was easy: II
| will be seen that quite an array OF IA
| vorabe matters came to light. The onIy
| unfavorable factor was the report OF t@he @
| Brooklyn Rapid Transit Company Tor the
| past year, which showed only a sllSh IN
| crease in net earnings and certainly not
| enough surplus to make a dividend pos
/ sible this year or probable Tor Two OF
| three years to come The market ulu hut
| re spond in the way that might nave been
| hoped. There was dullness lot the InoSt
| mart all day and the changes IN prices
| were few and not large. The best that
| could be said of the market was that the
| small gains outnumbered the losses. Gu
riously enough, the strongest stock on the
| list was Brooklyn Rapid Transit, about
| which the only piece of bad news was
| published while Atchison common was
the day before and closed little If any bet
| ter than the close on Tuesday. The out
| look for the market undoubtedly is i'm
| proved, however. and the tone OF. the
street is more hopeful decidedly than II
| was a few days ago Careful people ad-
| wise buying stocks on all recessions ana
there are many predictions that there
will be a good advance before there Is
| much of a decline
The Atchison dividend can be consid-
| cred in other way than as most I'm,
| Dortant matter This common stock solu
| in 1895 at 31s 1t sold below 20 only as
| long ago as the beginning of. last year.
| During the present year II sold as low as
| 4214 No dividend was paid on the STOCK
| from the beginning until the present year,
| and only one dividend has been pald on
| il ~ per cent, six months ago Inc
earnings of the company four years ago
| ver. only sufficient to pay a little over
the fixed charges. the record Tor -IS9o-I
showing $40. 600, 900. net $5,VNVH, chaises
S4609,U21, and surplus Sl,4V0Vl' somethlhs
over / per cent on the prefe rred stock
At the present time the common stock is
selling at 1G. and is established on
per cent basis, with surplus last year
equal to nearly as much again as a d per
cent dividend. AT present gross earnings
are double what they We're four years
ago, net earnings something ike four
times a 8 large and the surplus last year,
after all charges and dividends, was very
nearly as much as the entire net earnings
in 1861. This is a record that has never
been equalod in railway history, and
that NAV never be ouualCd again. some
people believe that the safe course would
have been to continue the per cent
dividend rate on the common stock this
year, but with earnings constantly IN
creasing over the phenomenal showing OF
last year, it can hardly be said that the
directors have been less than conserva-
tive in their action. The stock seems
likely to so materially higher in the near
future, though it may be held back OF
even allowed to drag somewhat imme-
diately on account of the realizing OF
profit that is likely to take place. Yes
terlay it advanced to 167s and then de-
clined to 76'a at the close.
There is a theory devoutly held despite
many denials that the Atchison has been
or will be acquired by Pennsylvania in
tsrests 1t is certain that much of the
recent buying OF the stock has been for
interests that in times past have been
thought to be working for the Pennsyl-
vania people. II this deal is to be made
it seems probable that the Pennsylvania
people knew of the proposed dividend
action and approved of II. This in Itself
should be considered an indication that
it was Conservative move. 1t may also
be taken for granted If the Pennsylvania
people have control that they Will con-
tinue to pay the ( per cent dividend rate.
though a higher rate may be long way
of. The Pennsylvania people establish
stock on a conservative dividend basis
and keep il there until il can be advanced
to a higher rate conservatively, rate
that there is every reason to believe can
be maintained. That is the way they
have done with their own stock and with
Baltimore and Ohio and Norfolk and
Western
The appointment of H. H. Rogers on the
Union Pacific board is believed by some
people to indicate that a deal between the
Union Pacific and the St. Paul. backed
to a certain extent By the Standard OIL
people. is likely to be carried through in
the near future. 1t will be remembered
that Mr. Rogers was put on the St. Paul
directory only few days ago. The story
is that the Union Pacific and Northwest
ern will acquire the St Paul in somewhat
the same manner that the Burlington was
acquired early this year by the Hill
Morgan Great Northern-NOrthern Pacific
combination. II may be said at once that
there is quite as much reason why this
deal should be made. and that the price OF
90 could be paid for ST. Paul stock even
more legitimately than il was paid for
Burlington. 1t may also he said that st
Paul has many good friends at ITS pres
ent level which. compared with that OF
Burlington, seems remarkably cheap.
What. if any. influence the return from
Europe of w. X. Vanderbilt will have on !
this deal no enc outside knows. Rumors
are more concerned at present with the |
possibility of a Vanderbilt deal in the |
East 1t may be stated on very good |
however. that as far as can |
be learned nothing is likely to occur in !
this quarter in The near future. There |
have been very positive denials that the |
New York Central viii float it's bonds to !
take up the stocks of the Junior Wander |
bits" and while such denials are often
worth nothing whatever there is reason |
to believe them now. New YORK Central
has not beel nearly so buoyant during
the past week as 1t was a short time ago,
and the same may be said OF the Junior
Nanderbilts.
The earnings Of the Brooklyn Rapid
Transit Company for the past year
were a disappointment. The net earnings
were slightly larger than they were in the |
previous year and it Is undoubtedly the /
fact that The company Is making a steady. |
though slow. headway toward profitable |
business. But this fact does not by any |
means include what the friends Of the |
company hoped for two or three years /
ago. The surplus of the company for the /
year, after all changes, equals something !
like ~ per cent on the stock. An i'm |
mense sum was paid out In settlement of |
suits that had not been counted |
on the stock, in fact. IT viii be seen that |
no dividend can be expected this year, |
and that to expect one inside of two or |
three years would be most optimistic /
nding this showing the stock |
vest erday was at all times very strong
highest price for several days. The close |
was at 1914. two points above the opening. |
The buying of the stock was for invest |
ment and to cover shorts, on the theory
that the recent big break Nas discounted |
all the bad news.
Amalgamated Copper was strong, get |
ting high as S7lz and closing at S61z, |
well above the opening price. This ad-
vance al wa contrary Ia tho ,,i,. ,,,.