The times. [volume] (Washington [D.C.]) 1897-1901, 1901-03-13


1t closed at the Monday closing price,
| l49 IL.
Burlington went to a price not before
| reached by it during the past two decades
and at one time there was APPARENTLY no
| one that wished to sell it.. After the hrst
squirt, however. the stock did no more
than hold its own and during the last
half hour ii declined to ISL IA. There is
much apparent wonderment over the rea-
son for the boom in the stock, but, as a
company is making a fine record of earn
ings, larger than ever before. 1t is treat
ing its stockholders with great generosi-
ty. There is the large probability that
during the coming year or TWO there Will
be large further disbursements OF rights
in connection with the big block of high
interest rate bonds to he refunded. And
in addition to all this, there is contin-
uance of the talk of an agreement of
some Kind between the Burlington ana
the Northern Pacific, which very easily
may be true. The last argument is not
so good the others, however. Some
reaction may be seen in the stock in the
next day or two and, indeed, careful mar
ket people rather look for it TO sell back
TO around 145 again before il goes much
higher. On any such break the advice of
the friends of the stock is that it should
be bought for much higher level.
The Southwestern securities generally
were among the most active and buoyant
yesterday, had been generally pre-
dicted Missouri Pacific made a fine squirt
to the highest price on record, SO "a, but
later sold off to below its opening level,
closing at so -. The cause of the boom
was the publication Of the annual state
ment of the company. The increase in
net earnings during the fiscal year was
S. 5S6, 80. The company is not paying any
dividend on the stock. and its price is
therefore of course, entirely remarkable.
The annual statement is magnificent
one, and If anything would justify the
current price of the stock II would. But
as the dividend, when declared, is eX-
tremely unlikely TO be more than per
cent, there are many careful people mat
expect an early decline of Importance
in it.
Attention has been called to the merits
of the St. Louis and San Francisco securi-
ties many times in this column during
the past two years. Their advance has
been steady and one Of the most remark
able made in the entire railway list dur
ing this period. The securities have been
active and especially buoyant during the
past two or three days. and yesterday
made new high prices, well above any
heretofore recorded. At the same time
the earnings of the company are such
that even the present prices do not seem
in the least inflated. There may be
decline of a point or two in them. and If
there is, some of the most careful people
will purchase them.
Missouri Kansas and Texas was one of
inc lew STOCKS tfldt showed 80 DupE AM
at any time yesterday. This was consid-
cred somewhat surprising in view Of the
general strength of the Southwestern
group.
PENNSYLVANIA was one of the buoyant
stocks yesterday, getting again to it's
recent high price of l53. 1t sold OF some
what before the close. Shortly before
the end of the session the announcement
was made that the stockholders Of the
company at their meeting yesterday had
authorized the increase OF the capltaI
stock Of the company to SOL. IOO.pcu, being
an increase of 800, 600. goo This action had
been expected and II created no surprise.
Naturally, however, il caused some spec
ulative buying of the stock. The resolu-
ton of the stockholders authorized the
directors to issue the stock when they
may see fit at any price not below par.
This of course. leaves to the directors
the option OF selling the new stock in the
open market. as they did on one occasion
not long ago, or Of allowing stockholders
to subscribe for 1t at par. 1t Will be seen
that the future price Of the stock is
likely to be affected materially by the
course that the directors may take in the
matter. in the end the results would be
virtually the same. but temporarily sell
| ing the stock in the open market would
| Simply make ii plentiful and therefore
probably cheap, while its sale to stock
| holders at par would be in the nature of
a fat stock dividend.
The disposition of the funds to be real
lied bv the Pennsylvania through the
sale of the new stock is much discussed.
There can be little doubt that much of
the money will be expended in purchasing
the securities Of other railway systems
with which it has allied interests, the
Baltimore and Ohio and Chesapeake ana
Ohio among them. The importance OF
this policy Of the Pennsylvania company
cannot be overestimated. II is one OF the
immense features Of the present outlook
for the railways on which the optimistic
base their belief that market prices are
TO be very much higher during the com
ing few years than they nave been az
any time get. Pennsylvania stock Itself
is regarded with great favor by many
careful investors. but on the whole the
chances for large advances IN prices
seem brighter in some Of the low priced
issues that will be affected by the com
munity Of interest policy.
The regular dividend Of ia per cent
quarterly was declared on Western Union
Yesterday. The stock was not affected
by the announcement. few transactions
occurring in IL during the session The
dividend record Of the company has been
a superb one. It is entirely probable that
the stock will sell at par during the com
ing few months if the general market Is
strong.
Washington Stock Exchange.