The times., 1901-06-12

| harmony plans was hopeful It will be
/ seen that there Were Inducements enough
| to have made a little boom if the people
! had been in the street to buy the stocks.
| The gross earnings of the Missouri Pa
cific for the first week Of June showed
| an increase Of $4,000. The gross earnings
/ OF the Missouri, Kansas and Texas for the
same period showed an increase Of $50 S53.
The Texas Pacific showing was good.
The Gould securities We're the most ac-
/ tive in the list all day and attracted con-
/ siderable attention. The earnings state
meuts were good and had some iniluenC"
| on proft ssiODai sentiment. but it could .e
seen that the traders were playing more
! on the possibility Of developments in the
| Greater Missouri Pacific deal Except for
! the professionals there was little business
| even in these securities.
| One of the stories regarding the Mis-
souri, Pacific deal was that Missouri Pa
! Citic is TO be given for Texas Paclnc at
/ the rate of two shares for five, and in
asmuch as the ratio of the two stocks
| was approximately that yesterday, the
/ street considered the story to have a
color Of probability. 1t does not take
much to give the street confidence in
such a Tumor for a little while, until
another equally gauzy suggestion ap-
pears. Those that put out the story
made the promise that missouri tacilc
Will go to l25 today and Texas Pacific to
80. 1t will be interesting to watch their
| fluctuations today. Missouri PaClhc was
strong yesterday, at one time getting as
high as l223s, but Texas Pacific sold OH
during nearly the entire session.
Rock Island and St. Paul were both
particularly strong in the morning hours
on the TeyuSiOn Of feeling caused by the
crop report. Later they sold off quite as
sharply as they opened up. For this the
street did not offer any explanation. st.
Paul opened at 1864 and went as high
as 16S 1t sold off to 1861 at the close.
Rock Island went as high as 169 at the
opening, but soon began to decline badly
and at the close was at l65. the very low
est price Of the session. The Atchisons
followed the course Of the more active
grangers.
Two of the New York papers had spe-
cial articles on the Rock Island prospects
yesterday morning. and both, curiously
enough, took n fairly hopeful view of the
outlook for the stock. 1t was on these
tips that some of the buying of the morn
ing was founded a later feeling that
perhaps these stories should not be
taken too seriously may have had some
thing to do with the weakness OF the
stock at the close.
The Rock Island bonded Indebtedness ~
S6N.obOo0 and there is required to pay
interest on this nearly SL000,0O0. The
capital stock has been S5000 00,00O and the
dividend requirement Including the i'm
prOyement fund charge s. coo. The
addition Of $4,000 600 TO the capital stock
viii increase the dividend requirement
S500,0 yearly. This will make the total
charges against the net income about
SrtlD,tp. The ability OF the company to
earn this need not be questioned in ordi-
narlly prosperous years. 4 good surplus
even IS 20 be expected. But tne stock has
been selling at l15 on the basis of a per
cent stock. If an investor may expect to
get per cent for his money. Even at
yesterdays low price, 165. per cent
dividend would yield considerably less
than per cent to the investor This
would seem to indicate that even suppos-
ing that the dividend is to be increased
TO per cent, the present price is several
points too high. The plum" to be di-
vided In connection with the issue of new
stock at par has certainly all been dis
The tip yesterday was that ST. P.ul
Is TO be given dividend at the rate of :
per cent in September when the directors
VIII act on the dividend. The chances do |
not favor any such action by the con-
serFative management OF this company.
The action of the Car Foundry stocks /
during the past two weeks has been ex-
cellent There has been a fairly steady |
advance on what has seemed 10 be good |
buying. The stories told of the earnings |
Of the company during the past two |
months have been very rosy and there is /
perhaps warrant in these for purchases of /
both issues on the TecessiOns. The out !
look for an increase in the dividend rate /
good. Semi-official statements have been /
made. in fact, that no such increase need /
be expected. The preferred looks TO be |
somewhat better as an investment at its /
present level, as the recent advance has /
been chiefly confined to the common on |
the talk OF a larger dividend.
The cOalers did little better than hold |
their own yesterday. the Readings espe- !
cially making a good showing Of strength |
all day. The argument that an export tax |
on coal by Great Britain would be a good /
thing for the coal lines seems to be well |
founded. and a very busy summer for /
them is assured. even without the promise |
of President Baer Of the Reading com |
pany. Buying of the Readings and the |
Eries on recessiOns Is advised.
With the Washington Traction Company
unable TO earn the interest on its bonds, |
by half such consultations as the Brook /
lyn Rapid Transit. that have never paid |
penny in dividends, should not on general /
principles. be very popular with local /
Spectators.