New-York tribune., 1901-03-10
financial.
The Financial World.

when the average trader makes the stereotyped
inquiry-"Is there anything new?" the answer
must be that there is not. There is nothing new
at present. The general market is moving alor
on the lines familiar to the public on facts "a
miar to it. But there are a few new things
preparing.
Concerning the thing most recently talked
about. the new steel company. nothing has come
out during the week to indicate that the consor-
dation will not go through with comparative
smoothness. The detail work is going on. and
of course this sort of thing has none of that ab
sOrbing interest for the public which the ONT
lining of the grand features of the plan had
Therefore the affairs of the new company seem
temporarily to have dropped out of sight Thera
IS some talk of organized opposition by stock
holders of the National Tube Company; but n
does not seem likely 10 amount to much Ona
of the chief points to consider in respect to the
working of the company is that il avsr.s
the necessity for great expenditures by the var,
Gus steel companies which they were preparin,
TO make because of their growing rivalry and
nearer approach TO invasion of each others ter
ritory.
IL may also be said of the ST. Paul deal th.,
it appears TO have gone into abeyance-for the
time being. 1t is more than doubtful whetbar
the weeks rise in Burlington which carried the.
stock above 1J0 had a direct relation IN tbs
proposed deal. although 1t may have had an In
direct one. 1t has been said that the Burlington
directors have considered they must do some
thing for their stockholders" the same as n.
st. Paul directors felt after they rejected Mr.
Morgan's terms. The st. Paul meeting takes
place Thursday. when the dividend is to be act
ed upon. If the Burlington directors feel undsr
the same compulsion, something will be done
later to justify the advance in the market prca
M he Gr0a
stock will go higher than it is now
There has been excellent buying of the Atch
sons A leading insurance company took big
block OF the Adjustment Is recently for invest
ment The preferred stock was above 81 yester-
day. some quite large amounts of il having been
taken during the past few days As per
cent stock, with dividends about 10 come on the
mass of common stock behind it, Atchison pre-
ferred ought TO work up par without a great
deal Of trouble. The common stock will this fs-
cal year be dividend payer. the declaration OF
the first dividend not being a great way Off
The general understanding is that dividends
will be begun at the rate of 3 per cent Lead
ing directors say that investors may expect the
rate 10 be raised to 4 per cent afterwards If the
common stock goes off little in the market IN
the next week so, one need be surprised
There are some strong people who want il kept
down until they can enlarge their lines.
The directors Of the Southern Railroad met
expectations in raising the dividend on the pre-
ferred 10 t per cent. The statement Of earnings
showed the net TO be nicely adjusted to this
rate-for the reason that everything over is ap-
propriated TO the Improvement of the property.
As the stock had gone up to 80 before the divi-
dend was declared OF course the declaration was
discounted. and a small recession followed. At
S0. the stock pays . per cent 70 the investor;
and the investor may expect with confidence
that in the coming fiscal year. the dividend will
be raised to . per cent. which is all the stoc|
can get. There reports that in few days an
important announcement will be made in con-
nection with the Seaboard Air Line. the Plant
system. and the Southern: but as to this. We
have straight information.
Not much has been doing in the Northern Pa
cifics but Union Pacific has been coming some
what 10 the front again. good investment
buying. 1t is probable the recent decline In the
stock was largely due TO forced selling by people
who got hurt in the steel stocks. They had
some considerable lines of Union Pacific. The
stock is getting into pretty good shape for an
advance which will carry it close 10 par.
hardening money market may ret1-d the move
ment. but the roads earnings are forcing the
stock up TO those figures.
Minor movements in the railroad list may be
noted in the Wabash securities. and in Chesa-
yesterday that the Pennsylvania had leased the
road guaranteeing a 5 per cent dividend While
this is probably untrue there is doubtless some
thing going which gave foundation to the re-
port The Pennsylvania controls the Chesa-
peake. as 1t does the Norfolk & Western The
Pennsylvania is giant property. and its stock
is bound 10 see higher prices while the general
prosperity of the country continues
In relation TO this. the nub of the present
situation of the market is ID, the unprece-
dentedly large railroad earnings; 90 the steady
effort being made TO move this large traffic at
stable rates through community of ownership
between the leading railroads. II has happened
over and over again in the past. that mass OF
traffic pressing on system OF roads, has been
frittered away as far net returns were con-
Cerned. by the rows between managers and the
tricks Of superintendents-Out of which theS
scOoped percentage And again 1t has nap
pened. that influential directors have sold their
stock holdings at price satisfactory to theHi-
selves and then given secret orders TO cut anu
slash rates in order TO adversely affect the
stock market. 1t would be too much 10 expect
Of human nature that all this has been stopped
by the community of ownership; but this at
least can be said and it is enOush-that by TINS
mutual ownership, responsibility is being mar
rowed and restricted to comparatively 1e"
leading men, These men are the giants OF 'n'
railroad and financial world Now giants nSHl
sometines-but the sometimes very rare
They compromise. and keep the peace. THIS
steel trade deal is a case in point Carnegie De-
ing big enough to force the other parties to ouy
him out which IL paid TO do rather than so
into a destructive commercial war 70 drive hiiii
to- terms In the railroad world, this narrowing
OF responsibility TO few great leaders IS