The times., 1901-03-31

and that the stockholders of the com
pany are to be guaranteed : per cent. The
rllmor has received no confirmation from
official sources. 1t is certain that the deaf
has not been completed, but. on the other
hand, it is probable that some kind of a
! deal is under discussion. II may fail. and
IL may go through. If IL is consummated
il is not likely that the Burlington stock
holders win be guaranteed per cent. To
, an outsider these facts do not seem 10
warrant the present big price for the
stock. There was quite as much certainty
that the st. Paul deal would go through
two months ago, but after the stock had
been doomed up tremendously il was
found that some of the important st. Paul
stockholders refused to accept the Hin
terms. generous as they were. Then the
stock tumbled twenty points In a very
short time.
Some of the railway experts are of the
opinion that Mr.. Hill cannot possibly he
considering the question of Offering the
Burlington stockholders a guarantee of I
per cent dividends. 1t is suggested by
them that such a guarantee would be eX-
tremely foclhardy in view of the past
record of the Burlington. even although
that has been an excellent one, as railway
earnings records go, over periods of sew
eral years. IL will be noted if one looks
back that in 1883, only thirteen years ago,
this system did not earn its fixed charges.
In the three years 1894 to 1896 the surplus
over fixed charges was an average of
2,f0hOG0. or less than So per cent on the
amount of capital stock then outstanding
Last year the company earned S per cent
on It's capital stock and this year there
has been a considerable Increase. so that
possibly the rate will be as high as 10 per
cent. The capital stock has been in
creased by many millions during the past
thirteen years. 1t has been increased
faster than the mileage of the system.
This showing is not one on which to base
a guarantee OF I per cent. according to
any standard of railway finances in the
past. AS to the present price of the
stock, 1t may be pointed out that even if
the dividend Is To be increased to per
cent the return to the investor at this
level will not be very large. The man
who pays Sl75 a share viii get only 4 per
cent on his money.
Western Union has been one of the fea-
lures of the past week. 1t sold yesterday
as high as 81. the best price since 1899.
when rs was reached at one time. Nu-
merous rumors are ahoat regarding the
company, and some of them are probably
true. One is to the effect that a combina-
ton of some character has been effected
with the American Bell Telephone people.
Another Is that the Western Union aud
Postal have made a working agreement
that will be of great benefit to both. But
the actual facts as they are known are
most encouraging and quite sufficient TO
make the stock buoyant IN such market
as the present Earnings are increasing
handsomely. The Western Union has paid
its per cent dividends with greater regu-
the country.
A big squirt in Rock Island and Atchi-
son common characterized the closing OF
the market yesterday. ROsk Island ad-
Nanced 4 points TO l3G and closed at 1876
with 4 handsome net gain. Atchison
common advanced TO G315 and closed at
63}s. Both Of these prices. il is needless
TO say. We're the highest of the present
movement Atchison has never sold as
high before and Rock island not in eight
flrr
systems are to form an alliance. were
again afioSt yesterday to accompany the
boom Neither of these stocks is con-
Sidcred an attractive purchase. at it's
present price. The preferred Atchison
should advance to par in the near future
and is one of the most reasonable invest
ments in the entire railway list. The
statement Of the Atchison for February
issued during the week showed. as US
ual, fine increase in net earnings.
The Morgan Steel Trust securities have
been launched as far as dealings on the
stock exchange are concerned. They have
been traded in when issued in immense
blocks during the past half week. The
public has bought the new securities
rather heavily and the insiders have
doomed them 50 that there has been a
steady advance in price. The common
closed yesterday at 49, and the pre-
mense amount OF these securities 10 float.
1t is probable that they will be advanced
further al this time even If there is soon
to he a reaction OF Importance in the gen
erai list. But il must not be supposed
that A1r. Morgan and his friends will at
tempt to sell out everything they own on
this advance. They will sell out pretty
thoroughly before many months have
passed, but two or three minor upward
and downward movements may occur be-
fore everything is foated.
Among the securities likely to make an
excellent showing FOR themselves this
week are Pennsylvania Union Pacific
and the Southern Railway stocks. Only
one of these securities has had any adj
vance during the past week. and that not
a very large one. Pennsylvania looks es-
peCially attractive. 1t has taken no part
whatever in the boom of the past three
months. although the recent advance i'm
the dividend rate and the announcement
Of rights" worth 10 to the stockholders
are both matters Of The utmost impor-
tarCg