The Washington times., 1901-07-18
Government Bonds.

|
The entire stock market yesterday af-
ternoon hinged on the purchase of block
| of Northern Pacific stock at lis, and the
general opinion that this transaction in
dicateS the consummation of the COM
| munity of ownership plan and the settle
ment of ali differences between the Nor
gan and HARTMAN interests. The market
! was strong all day after a low opening,
! but it was not until after the Northern
| Pacific sale that its most buoyant phase
! made itself manifest. Stocks began to
| advance sharply and continued to do so
until the close. Union Pacific jumped TO
! l03. more than points. St. Paul yaulted
to 163 Rock Island to above liS. Atchi-
| son common to above Il. Missouri Paci-
| fic to above 106 and other Western securi-
( ties in the same way advanced more in
| two hours than they have gone off in
| three days of tumble. The general list
was not so buoyant as the granger group.
but everywhere excellent strength was
| shown, railway and industrial securities
alike sharing in the movement.
The boom was such an entire reversal
| of form as is seldom seen in the STOCK
! market The break had ended, it Is true,
| on Monday and the tone Of the market
| had been fairly regular since that time;
| but business had been extremely dull ana
uninteresting and the slight advances
| made had not been notices. as OF any I'M
portance. 1t was thought oy careful peo-
! pie, as was suggested III this, column yes.
/ terday morning and on Tuesday, that the
| low prices had been reached ana that
| there would be gradual advancing ten
dency unless the strike news ana the
| crop news Should assume much worse
| phase No one on the outside, however,
| had looked for any such big advance as
came. 1t is probable that the opening
this morning Will be strong and at an ad-
| vance from the close. The future of the
market is undoubtedly given better as
| pect by the community OF interests de-
| yelopmepts If there has been actually
consummation of the plan as the street
| hears about Whether the immediate mar
| ket will be helped beyond this morning S
| opening remains to be seen. some peo-
! pie believe that a sharp reaction is nkeiy
| 10 occur after the first hour ana this
seems not improbable. Later, If the crop
| and strike news does not assume worse
| phase the general tendency shouid oe
| inward as II has been at all times TINS
week The break in prices was large a M M
| important and in most cases quite enough
| iected during the big boom. Some Sc
| curities even have been sNlhng thls M MWteh
| at level well below their Intrinsic value
-rb.re has been no transaction in North
| ern Pacific for several weeks, ana the ab-
sence of business in the stock mas Deeh
/ considered. naturally enough, an iiloica. ca
| ton that the different interests IN the
1 Northern Pacific fight were stll al odds
| 1t was suggested that neither the MOI
| gan party nor the Hartman party prop
! ably had enough stock to be perfectly
! sure OF its ground, and that therefore
| neither was willing TO sell any stock Inc
| sale yesterday of 21o shares at lls seemed
! TO indicate that all differences iitn peen
! settled The last sale recorded w@s at
I 165 and the drop apparently could only
| mean that there was no longer any cor
! ner in it The story that the street heard
was that the community of interests Plan
has been completed as far as the Nortn-
! ern Pacific, the Union Pacihc, ana the St.
! Puul are concerned, and that Mr. Morgan
| will have the naming OF the Northern
1 Pacific board. II was also SAID that the
| settlement of these troubles VIII MAKE
impossible any further rate cutting, whieE
seemed to indicate that the Atchison the
Rock Island and the Chicago Great We'e-
ern people have been seen IN some man
| ner. Quite naturally this story Tor the
| time completely overshadowed all other
! factors in the market 1t is of the utmost
| in 9ortance. There are excellent indica-
tions that IL is true. Another statement
| made late in the day was that a formal
! announcement regarding the community
| of interests plan will be made today or
| in the near future. As to this there is
less certainty, and on the whole 1t does
not seem likely that this course Will be
adopted unless the strike and crop news
is so bad that tine market needs strong
fllip to keep it from tumbling.
The coal securities held up well under
| the news of the strike OF the engineers.
which might Of course be a most dlsase
trous affair. The excellent showing OF
these companies recently ana the pros
peLt Of good business in the future makes
the street optimistic regarding the group:
/ Mr. Morgan to settle the strike without
much harm to his properties.
The statement Is made on good au
thority that the Brooklyn Rapid Transit
Company is now earning between and
per cent on the stock. This showing,
I however. cannot be considered particu-
Iarly good, in view Of the present price
of the stock
There was boom In Sugar yesterday
inn haf general rk,-f
begun to advance, and for this reason ii
must be supposed that some especial rea-
son actuated the upward movement.
| What this is the street does not know,
hut the rumor of an increase In the divi-
dend is heard frequently. The stock ad-
vanced to II, gain OF points or more
for the day, and of points from the
iowe.t level attained during the break.
1t held its gain well
Western Union was strong. Tho buy
ing Of the stock of the company is good,
and apparently insiders are supporting 1t.
At its present price the stock looks at
tractive TO many people that have been
! investors in II for many years. The
record of this company for regularity in
1 the payment Of its 5 per cent dividend
has not been equaled by any company
| whose stock Is dealt in on the New York
| Stock Exchange-railway or Industrial.
Union Pacific common on Monday went
| hack to the Level before the community Of
/
ago this level, around 80, was perhaps a
| fair price for the stock. In the subse-
ouent boom the price undoubtedly was
.skyrocketed to a level far beyond its value.
1t now remains to be determined whether
recent developments have made the stock
any more valuable than il was three
months ago. The community OF interest
| plan, IL IL is consummated. undoubtedly
adds value to the stock. The earnings Of
the company continue to Increase Snd the
amount applicable to the dividend on the
stock also is larger every month. A divi
dend of per cent Is being paid, and "A
much larger dividend earned. Par does
not seem an unreasonable price under the
circumstances. providing that the Harri-
man interests have been able to hold their
own and secure fair deal for the sys-
tenn. and provided the crops in the Union
Pacific territory have not been badly dam
aged. The net earnings of the company
for the last fiscal year are estimated as
| about S20001.0 CO., and "other income" will
probably raise this amount to s2l500. 600
The fixed charges on the company are