The times. [volume] (Washington [D.C.]) 1897-1901, 1901-01-07

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/ cradle extent, upon the transportation OF
| hituminous coal. The Reading, in addition
| to its paramount interests in the anthra-
| cite coal industry, is also a heavy shipper
! OF soft coal. The Erie, Baltimore and
| Ohio. and Pennsylvania Railroads also
have large tonnage of the bituminous
| product Last month the Reading shipped
| 100000 tons Of anthracite coal which
| was the record for that company in any
| single month.
| Cuthbert Mills says in his weekly let
| ter in the Tribune" relative to the St.
/ Paul Great Northern deal:
"ofhcial announcement of the purchase
! of the Jersey Central in the interest of
| the Reading Company has preceded the
official announcement of the leasing of
the st. Paul by the Northern Pacific and
Great Northern. The latter is looked for
at any moment. In last weeks article
it was pointed out the new deal which
had been behind the immense buying of
the Northern Pacific stocks had reached
the stage where the St Paul had come
. to the front. To outsiders ii was doubt
ful then whether the new arrangements
would take the form of a lease or sim
ply OF control by joint ownership of
stock. The latter seemed to be the more
probable, rs being simpler; less liable to
interference by speculative lawsuits or
legislative strikes. However it turns
out that the plan contemplated lease
The term of this are still an official Sc
cret, but it is known that powerful in
terests in the St. Paul would not con-
sent to lease at per cent
The rumOTs in circulation Yesterday
were that il would be per cent for two
years and Z per cent thereafter. with a
division of treasury assets. the same as
was agreed to in the purchase of the
Pennsylvania Coal stock.
The execution of this lease will mark
the disappearance of St Paul stock from
the trading list. 1t will go of it just as
other stocks have gone when they have
become guaranteed securities: such as
Fort Wayne stock when the Pennsylvania
bought the road. as Norris & Essex. when
taken by the Lackawanna; or as Lake
Shore-the latter stock being converted
into bond. This disappearance will not
be effected right away. 1t will take some
time for the guaranteed stock to find lodg-
ment in the hSze5 Of investors Probably
three to four months will be required.
during which time transactions in the
stock will gradually diminish, until the
time comes when only occasional lots of
St Paul viii be seen on the tape.
"As to the price the stock will settle
around. we cannot know that until the
terms of the lease are public property.
But we may get some idea from a remark
credited to Mr.. Morgan ten days or SO ago.
when some one ventured the suggestion
that st. Paul looked rather high. Not
high for Z per cent stock he said. If
st. Paul is to be reckoned hereafter as a
Z per cent guaranteed stock it will settle
somewhere between 40 and 1S0.''
1t is reported on good authority that the
fip will no
on per cent dividend basis this spring
Insiders have been buying the stock.
The reasons for the general advance in
prices have been general ones. These |
reasons have been analysed frequently in
this column during the past six months
The year which ended the other day
shows railway earnings in excess Of any
previous year by many millions of dol
lars. portion of these extra earnings
is being devoted TO lettering the cOndi-
ton of the properties and the remainder
will be expended in larger dividends. The
coming year promises to be a repetition
of 1900 in this regard There is probably
no enc that doubts that railway earnings
will not increase. This one factor, then, |
offers the best of causes for an advance |
in the prices of securities. People are |
investing in stocks because they believe !
they will get good returns from their in |
vestments, and their belief is founded |
on facts that no one disputes. The great !
deals of the past few months and !
those that are now being announced and |
limited al for the future are all with one !
object in view, the lettering of railway |
conditions, the saving OF expenses. and /
the enlarging of profits. In a very posi- |
tive way these deals make for the perma- !
nent increase in the value of stocks.
Money is more plentiful than ever be- |
fore. Year after year the price of money |
is growing lower in comparison with in |
vestments of all kinds. Government bonds |
are on a 2 per cent basis. Gilt-edged rail-
way bonds are selling at 3 and l-2 !
per cent basis The Burlington is grad
ually refundng its debt at IL per cent. |
The Southern Pacific last week put on |
top of its already immense bond indebt- /
edness a new bond issue of SO goo, 600 at (
1-2 and sold it above par before the
books were opened. And the
Southern Pacific stock Immediately under
these bonds is receiving no dividends.
With the vast amount of money seeking
investment and with people willing TO
take such small returns for their money,
it is hardly to be questioned that excel
lent railway stocks selling now where
their dividends are equal to and per
cent will be advanced well in price. Es-
peclally IS TINS true Where, as IN many
cases. earnings are equal to and u per
cent on the capital stocks. In Europe,
" here capitalists have become reconciled
to and 3 per cent investments, the
standard railway securities are selling
from % to so per cent higher relatively
than they are on this side. and not III the
booms either. but on . permanent level.
The bonds Of this Government are worth
as much as those of Great Britain if not
more The securities of the railways
controlled and operated by the leading
and most expert financiers and railway
men Of the country have not kept pace.
The same general reasons apply with
equal force to the securities of the great
industrial corporations. In a few in
stances Industrial securities are selling al
high prices commensurate with their div
idepds. The Rockefellers. the kings of
he indus rial corporation world. have ad-
ganced the price of Standard Oil in re-
narkable way. The same thing is certain
70 take place in the other induslrials in
time. The Rockefellers themselves are
buying immense blocks OF securities in
he new companies. 1t is probable that
hey have the controlling interest in some
,f the most important OF them. Other
capitalists eminent for their shrewdness
nave been buying many of these securi-
les on all their declines Business is I'M
nense. and profits fully as much as they
should be- The outlook is excellent for
he steel and other Industries in the same
say that # is for the railways.
rTbara &c much talk ~ f,verpa nj q tfo,,