The times., 1901-04-21

going into a miller syndicate" in the
hope of getting out before the public dis
covers the fraud.
Burlington stock on its individual merits
is not worth 1886 the high price reached
during the week. Still less is it worth
the 200, which Mr.. Hill proposes TO ray.
1t is a fact easily to be ascertained from
the records of the company that IL mas
never earned enough money to pay what
will be the interest on the proposed issue
of bonds to take up the burlington STOCK.
Mr. Hills proposition. as the street mas
heard il, is that $500 in 4 per cent tonds
shall be paid for one share of stock MT
Morgan is to take a large block Cl the
bonds at par. thus fixing that Irice as
the lowest at which II Is h9ped they may
be tfoated. 1t will be seen that this means
2nO for the stock The net earnings OF
the Burlington for 1900, the best year IN
its history. We're $4,000 The liked
charges were s., ST, 600, leaving surplus
for the stock of $l,92S,OO0. The capltai
stocI of the company is in round num-
bers S1l0. 600 goo. When this stock is taken
up by MIR. Hin the bonds to take its place
viii be about $500 000, 600 The interest on
these bonds at 1 per cent VIII be SSSOO,OoO
This exceeds the present earnings or the
company by nearly million dollars MT
i4ill. therefore, will be obliged to get much
more money out of the Burlington than
it ever earned before, or else make the
Northern Pacific revenues pay for its
deficit This is not good reason why an
outsider should buy Burlington StocK
| There can be no doubt that Mr. t1lll Will
sell out his bonds as soon as poSSlple
They will not be necessary for the con-
troll of the Burlington. A knowledge OF
these facts is, of course, responsible Tor
the failure of Burlington to advance TO
the price Mr.. Hill will pay. There are
great many holders of the stock that
would rather take 1870. or better, now than
take the chance of being in the rush 70
sell the bonds later. Nevertheless, the
stock is likely TO squirt to 200 at some time
before the deal is completed
There is a reasonable expectation that
the various Gould issues Will have a good
further advance this week. 1t Is proba-
BILE that there will be developments in the
Gould consolidation deal before long ana
! hints as to it's character are already toat-
| ing in the street Aside from this there
! are excellent reasons for optimism re-
arding some of the securities, on their
merits as investments simply. 1t IS learn
| ed for instance. that Missouri, Kansas
and Texas preferred is to be put on
| per cent basis. This statement was made
| by a large holder of the stock last week
| TO a Washington investor and may be
| relied on as correct.
A large Boston investor, who is buying
| Atchison preferred on information as TO
! the present condition of the company,
made the statement to a local capitalist
| a day or two ago that there is no more
conservative investment in the railway
! list He does not expect it's advance to
| be rapid. but believes that it will sell
! around 120 in time, perhaps during the
present year The common seems likely
| meeting of the directors is to be held
shortly and there is a fair prospect of the
! rate being made per cent annually.
Washington stock Exchange.
Sales-Capital Traction: 5d1O42s. Poto-