The Washington times., 1901-07-20

market is likely to be less positive in its
movements than II has been in recent
| days The suppositfon is that the in
siders who supported the market on the
break and began the boom day or two
ago on the announcement of the Northern
Pacific adjustment, are now taxing
profits and are willing to leave specula-
tion and prices to the professionals for a
time at least. Dizziness and traders
market" quite likely will be the result.
For the present, perhaps, some further
recession than that at the close yester-
day should be expected. Later many
look for resumption of the upward
movement. They advise purchases of
good securities on the breaks. Much Will
depend on the crop and strike news, how
| ever. Developments of an important
| nature, either good or bad, would be
likely to have quick and sharp effect on
prices. The news yesterday was not de-
| cisive regarding either matter, but on the
| whole perhaps good rather than poor.
Monetary conditions are distinctly re-
assuring Money has been easy this week.
rejecting the expectation OF a good
bank statement today. 1t is estimated by
the experts that the banks have gained
at least s., 600 in cash since last Friday:
| The big liquidation of last week ana OF
| Monday of this week will figure in the
statement for all that it is worth, and a
little more, owing to the system Oh
averages under which the figures OF the
| statement are compiled. The banks have
| gained from the Government this week
for the first time recently. 1t is said, and
they have also drawn large sums from
the interior The loan item in the state
ment is uncertain, but 1t will probably
show a decrease. The reserves snouid
show considerable increase.
Railway earnings statements yesterday
were all good. a number of systems re-
porting gross earnings for the second
week of July showing good increases. Ine
Louisville and Nashville and the Chesa-
peake and Ohio were among these
The gossip yesterday was interesting.
though for the most part not confirmed
by any official utteraBce. Chief among
the stories were those regarding probable
increases in dividends. As stated in this
column yesterday, there is a rumor that
the big interests now in joint control of
the Western railways Will make II an
early policy to increase dividends and de-
clare new dividends wherever possible
for the purpose of getting up prices.
I How much the various recent dividend
! rumors are traceable to this story and
how much to actual dividend prospects
1t is impossible to say. Possibly the in
siders will accomplish expect to ac-
compiish the advance in the price of
securities on such rumors simply and
creases except where they are strictly
warranted by conditions.
One Of the stories yesterday was that
the Southern Pacific is to be put on a
dividend basis Immediately. This story
has been put out frequently of late, but
I it was fathered yesterday by good
authority and is worthy of more consid-
Grafton for this reason. perhaps. The
suggestion is that the Union Pacific
needs the dividend from its holdings of
Southern Pacific in its business and will
therefore vote itself the disbursement.
The Union Pacific people, of course, have
the matter in their bands entirely, with
a good working control of the stock
The first interest payment on the Union
/ Pacific convertible bonds will be due
shortly and the money to pay it could
be provided easily from the Southern
to take this course.
The arguments against any dividend on
Southern Pacific at this time however.
have been rather convincing, Ai careful
people have leaned to the opinion that
none would be paid The company made
a Gae record of earnings for the year just
| completed, but an immense amount of
| money is being expended on betternleDts,
| and it has been thought that improve
ments would be continued on a large
scale. The report for the entire year has
| not yet been issued, bit in the figures for
! eleven months recently given out. the
( statement was made that 100000 had
/ been earned above fixed charges, and
that half this amount had been set aside
for betterments. The figures for the en-
tire year WILL not be greatly in excess
I of these, and it would not seem probable
that a dividend would be likely with a
surplus of only about 100000 for the
! year. This would be only ~ per cent ON
the stock. However. Southern Pacific
! stock has been very strong of late, and on
reactions many careful people consider
! it fairly good purchase.
/ Nothing new regarding the alleged in
| tention Of the Union Pacific TO increase
| the dividend on the Common has been
| heard. Neither has there been any con-
| firmation of the story that the st. Paul
| is to receive per cent dividends here
after. The best argument in favor of Z
| per cent for this stock is the alleged
promise made to large holders of the
stock few months ago that they would
get quite much by holding their stock
as by selling it to the Northern Pacific
people This promise is said to have
prevented the deal for the requirement
! of the st. Paul and resulted in diverting
the attention of MIR. Morgan and Mr..
Hill to the Burlington. The Burlington
| 2o9. and some people expect to see st.
Paul at that level, too. some day.
| 1t is announced on good authority that
there viii be no increase in the Baltimore
| and Ohio common dividend. No surprise
I was caused by this announcement as no
! increase had been expected, in conserva-
tive quarters. despite the excellent record
/ Of the company during the past year. The
| story is told that the Chesapeake and
| Ohio is to be put on per cent dividend
| basis.
Tennessee Coal and Iron was one of the
| fairly active securities yesterday. 1t ad-
I vanced to "a at enc time but later sold
/ off. The story heard regarding the com
| pany in the street was that President
| Schwab, OF the United States Steel Cor
/ poration, has made Il tour of inspection
/ of the plants and mines of the company
| with view to purchasing for the trust.
| The story could not be confirmed. II has
| been believed by conservative people for
| some months that the Tennessee Coal and
! Iron Company would ultimately go into
! the trust
Chicago Great Western made good ad
! vance, at one time getting to %. 1t sold
| off toward the close of the day. The ru-
| NOR was heard in good quarters that the
| community of interests is bidding for the
| line and this seems not in the least inn
! probable Mr.. Stickney's line is in a po-
| sition TO do a community of interests in
the West much harm if he should choose
| other hand IL Is a prosperous line at pres
| ent and price considerably above the
| market level could be paid for its securi-
/ ties without doing near so much was
done for Burlington.
The Gould securities generally were
| fairly strong yesterday rumors of
| Greater Missouri Pacific developments.
| Sugar was advanced we'll, at one time
f, selling above Hf. The stock has been
! one of the strongest on the list during
| the past week, showing a gain yesterday