The times., 1901-05-17

/ ceipts from the interior. from investors
hunting for bargains and people sending
/ margins TO cover losses in the panic.
! Western Bankers, too, have sent large
/ sums 10 New York to take advantage Of
! the recent high interest rates. These
| two items of loss and gain are likely to
! leave a balance not very large in either
direction il is said. The loan account IS
| a matter of much surmise, but attempts
/ to estimate what it viii show are only
/ guesses aal are not much better than
worthless.
The latest story regarding the Northern
/ Pacific matter is that the Union Pacific
/ people have acquired sufficient stock in
I iH. .,orthcri Pacific to give them a good
! representation on the board of directors,
: a.a tu,t Iu the same way Mr.. Morgan
/ aaG sir. Hill have made sufficiently large
/ purchases of Union Pacific to ensure
! themselves a voice in the Union Pacific
( management This of course, is the com
/ nunity Of ownership plan carried out log
! ically and handsomely. if such a state of
/ Things really exists. 1t is an agreement
: between powerful people, naturally rivals,
! to work together instead Of hEhting
! against each other. As has been pointed
out Uy important railway people for two
years or more, 1t is the most apparently
/ feasible plan yet devised to eVade the
/ interstate commerce laws and stop rate
! cutting. Perhaps the plan viii be carr'e
! out successfully. But it will be a long
time before the public will be willing to
believe in IL with the same implicit conf
denCe that il did two or three months ago.
Meanwhile Il. securities of these two
| companies are most dangerous to specu-
late an. Northern Pacific Is held almost
entirely hy these two interests. II is said
that there are only one or two hundred
scattering shares outside the two camps.
Union Pacific is not SO closely he'll but
il. too, is rot much scattered. Manifest
ly, therefore. il is not good policy to at
tempt selling either stock short, although
the best opinion is that Northern idc
will sell much lower and that Cnio Pa
cifc may do SO. There is no reason to
suppose that the stocks win be advanced.
They are not worth their present price
" lille they pay their present diA idends.
In the case of Northern Pacific, earnings
do not warrant a larger disbursement.
The strength Of Burlington Yesterday
was, of course, due to the hopeful North
ern Pacific situation. IL is now almost
certain that the Burlington deal will go
through, irrespective OF now the Northern
Pacific matter is decided. il is stated
that the Burlington stockholders are de-
posting their stock rapidly to take ad-
vantage OF the plan, and that U0re than
a majority of tn. stock is alreai in the
hands OF the depositary. The prediction
yesterday was that the required two
thirds Of the stock would be deposited
today. 1t is said that a large majority OF
the depositOrs express their wish to re-
ceive al of their allotment in bonds and
not part in bonds and part in cash. This
speaks well for the confidence of the peo-
pie in the MOrsan-Fiill management, but
on the whole il may be doubted if il
shows very good judgment Burlington
stock has never been worth 200. The
company in all of its prosperous history
has never earned ( per cent on 200. which
means that il has never earned sufficient
10 pay the interest that win be required
on the new bond issue. While tn, new
bonds, are likely to be quoted above par
for "A time, they viii be unloaded on
the public. without doubt, and it will be
a most remarkable thing if they do not
so off in price later.
The anthracite coalers are considered by
many 10 be deserving of a considerable
advance in the near future. The anthra-
cite situation is in excellent shape, with
Mr.. Morgan in absolute control and able
to make rates for transportation and for
coal what he chooses The domestic de-
mand for coal is immense and the foreign
demand is growing. These securities have
been held back by several adverse condi-
tons affecting sentiment regarding them,
but not in the least affecting the earning
capacity Of the companies. The Reading
securities are all considered good pur-
chases. Ontario and Western is selling
lower even than the Reading securities,
measured by its earnings and outlook.
Wabash preferred was fairly strong
yesterday. There was good buying of the
stock at times, which many explained as
pool buying on the expectation that the
Wheeling and Lake Erie extension to
Pittsburg will be built It is said that this
plan win be carried through shortly. It
is not hard TO figure out that, if it is, the
Wabash will be a much more valuable
system than it has ever been in the past.
1t VIII have a chance at the immense
Western tonnage from Pittsburg and
even Il II secures only small part of
this. comparatively, its earnings can be
increased handsomely.
Following are some Of the figures from