New-York tribune., 1901-10-13
finnnrldl.
The Financial World.

leading stock. which temporarily hannars =.
have more than ordinary influence by reason 40
special conditions affecting it, In this case .ba
stock was st. Paul The position Of ST Pan,
since the Northern Pacific purchased control "a
the Burlington has been peculiar The C.rAat
Northern and Northern Pacific being virtuaII,
united and the Burlington being in control oe
the same interests. while the Northwest wa,
part of the Vanderbilt system; the question has
been a sort of standing one-where will the st
Paul go? Any stock about the position %
which the public is guessing, is in the best uos
sible position for manipulation. St Paul was
therefore, on the track ready for a start. ana
when the people who had depressed the markst
through their unloading of AmaIgarnated Con-
per were ready for a turn on the short intersst
they started St Paul on a forward rush From,
156 on Thursday. it rose to 167 on Friday-la
points in two days. The Street was flooded
with rumors. First. the St. Paul was going into
the Great Northern Northern Pacific combna-
zion; next. it was not going there but a com
bination with the Union Pacific was eontero-
plated When the market closed yesterday
with St Paul at 164. the combination with the
U. p. was still prominent. but about three points
off from what it had been
The other story was that the plan for the new
company. which is to hold Great Northern ard
Northern Pacific stock. was just ready for issr-
ance. This matter was referred to last week
in this column. The new company is to issue
. per cent stock. against deposits Of the stocks
of the other two companies-for Great Northern
two for one; for Northern Pacific, one and a
quarter; in figures, 900 for 100. and 125 for 100
This is the current report 1t preceded in cir
cuIation, the report of the ST. Paul and u
p. combine, and ST. Paul was then ad-
vancing it was put into the new company
Later. the other story followed. Union Pacific
advanced coincidently with st. Paul. and crossed
par when the latter stock touched 16I; while
Great Northern-which ordinarily is not much
dealt in-reached 200.
These stories may be true enough or other
wise. One can only say that in quarters where
they would be likely to know most about the
matter. because OF large interests in the proper
ties, there is ignorance. not to say sCepticism.
The suggestion has been made however, that
the reports have been put out feelers. to test
the public temper That the tangle in which the
antagonistic purchases of Northern Pacific stock
involved both parties to it, would have to be
untangled through a comprehensive financial
scheme. has for some time been accepted as
certainty; the doubtful point only being when
the new scheme would be announced. II the
reports now in circulation be really only fore
runners to the expected announcement, then the.
present move IN the market is something more
than a turn on the short interest
1t is possible TO believe this. because the
money market is in much better shape than Il
vas, and operations which could not be under
taken some time ago. are possible now. The
simultaneous advance of Southern Pacific with
Union Pacific gave rise to sUrmises that causes
of friction which were known to exist between
prominent holders of the respective stocks. had
been removed. However this may be. it is
aTrxr
make Union Pacific most powerful corporation
Control OF THAI immense system. which is max
ing gross earnings at the rate Of $TOe0.O00 per
month; and whose growth is such that it viii
probably total up 100 millions for the year
within a reasonable period, say in the third
year from now-wiII contribute to the Union
Pacific treasury a large sum in dividends; and
outside holders Of Southern stock VIII. Of course
get them also. The question naturally comes
up, how far away are these dividends For
answer, one may say, look at the earnings, and
the growth of the property.
The Atchison directors increased the divi-
dend to per cent, as it was stated here last
week they would do. The expediency OF doing
| this in the face of serious crop shortage IN
| the territory of the road has been very sharply
questioned; ard 10 the argument that surplus
remains after payment of this dividend, reply Is
| for so extensive a system The directors on
| their part insist that despite the corn shortage
| there will be business enough from other
| sources to maintain the earnings Of the current
year fully up 10 those Of last year If this as
| sertion prove true, they may be said TO nave
| made good their point; but obviously this Is
! something only the future can determine. hence
| there is wide ground for controversy Mean
| time directors say the stock is going UP, when
| il undoubtedly win If the general railway hs'
/ does.
| The traction stocks were inclined to be weaN
BROOKLYN had good reason TO be so on the show
| ing of its annual report. Upon this matter
very shrewd investor said: "On the face OF
| this report Brooklyn isn't worth half OF what
il is selling for; in fact it would be hard to say
| what value it had. the report is SO bad But
| its value is that il is a street transportation
system in a rapidly growing city, and with ordl-
! nary good management it Will work out an
| right. I have made money buying Brookisn'
| and expect 10 do IL again.-but won't ouy II
at these prices. l can understand however
| how other people may be willing TO DC so
| Other people may he willing 10 take more
/ chances than this investor. They must II they
| buy Brooklyn at 50 in the face OF It's record IN
| Governor Flowers time. the company naUe a
| report showing a fraction over four per cent
i earned on the stock Now II repOttS d A'~0
/ over one per cent. This looks like progress
| backward. Under any conditions. IL is obvious
that the property viii require the most care
| full management for long time 10 come 10 avoid
/ getting into serious difficulties. Hence II looAs
| as if it were taking long chances 10 buy the
| stock at 60 There are so many other things
| to be bought around that figure, when nave
/ less risk in them.
| When the market turned TO so up. Sugar and
| Amalgamated Copper advanced also. The lat-