New-York tribune., 1902-07-20
finnnrlaI.
The Financial World.

the end OF the month; for there is no question
that the advance in prices IS the discounting OF
the crop prospects The West was never yet
hurt by too much rain. and too much rain be-
ing the only complaint which has been heard
from that section. it is safe betting that the
crops this year will be such 10 fully justify
the present rising bull market
The latest leader has been Pennsylvania
which has scored an advance during the week
from 154 to 160. 1t would be more correct 10
say the advance from $50. as the stock
had hung around this figure for a long while,
and only about ten days ago started on its
upward move Here is an advance which Is
likely to hold. Pennsylvania can find as solid
a market at 160 as 150 If there is any differ
ence it is rather in favor of the $50 level No
stock on the list has more friends. or is better
thought of. It is a favoritc Investment prop
erty, because Of it's long and honorable record
Furthermore, the Pennsylvania management
is one which inspires confidence The managers
seem to be men who sit up nights thinking how
they can improve the property Their plan for
coming into this city adopted just soon
as certain engineer discovered how prac-
ticable tunnel could be through the soft
silt which forms the bed of the Hudson river,
and the financing of this costly piece Of work
was as careful and skilful as anything in that
line which the company ever did Which calls
to mind the fact that the Pennsylvania 315 per
convertible into stock Of the company at 40
| in two years, are a first class investment.
! Nothing safer can be found. and the conversion
/ clause gives them a speculative value OF con-
! siderable Importance. Apropos of Pennsvlvania
f. cling. a leading banker lately remarked
TIT he knew Of no large company which was
more completely Independent OF banking IA
vOrs" than the Pennsylvania
| Perhaps after so quick rise as the stock has
4
/ on profit taking. Nevertheless. one need be
! afraid Of Pennsylvania around present figures
II the price runs on somewhat, II viii come
back again all right.
| It was stated here last week that while there
| would De increase in the next Union Pacific
| dividend, there would soon be some rights"
in connection with the refunding Of the Oregon
i Short Lines debt The refunding scheme has
since been advertised. 1t is simply the making
/ over Of a hoating debt into 25 year bond; the
money having been originally expended in the
purchase of Northern Pacific stock now repre-
| sented by Northern Securities stock The bonds
| are secure Of their per cent interest. and the
| bondholder has the right to anything over this
| which the Northern Securities Company may
/ pay. SO the bond may be said TO be per cent
| sure and anything contingent. The market
| value Of the rights figures out now a frae-
1 ton or over 1 per cent. which. in way
amount. The stockholder. therefore gets the
same return as if the dividend had been for
nally increased or a trihe more.
/ The small stocks OF the list have been having
| an innings. which was 20 be expected if the
/ market generally was TO move forward Chesa-
| peake & Ohio was run I'D six or seven points
| on no particular news. but with the usual food
| Of rumors- This is controlled property OF the
| Pennsylvania. and pays at present one per cent
1
coal business has lately been largely augmented.
| promising an increase OF the dividend IN the
| fall Norfolk and Western another controlled
/ property, and wholly soft coal road. also
lifted: the same reasoning The movements
were credited TO the Gates party; as was also.
violent outburst of trading in Southern COM
| mon. which carried that stock I'D 20 40 the
/ dealings being in enormous blocks OF stock. a
| single sale OF 10000 shares being recorded at
one time Naturally. when transactions on this
/ scale are seen, the inquiry suggests itself. who
! are the people who want 10 buy all this stock
and who are the people who have such masses
/ 10 sell? There was another such outburst in
| Southern common when the Louisville & Nash
vile purchase effected AS far as one can
| judge, speaking as a believer in Southern 10 is
/ about as high as the common ought 10 sell. on
/ present prospects 1t will be a dividend payer
some day. sure enough: but the day is some
1 distance Off
! Missouri Pacific has hung back during the
week, showing the effect Of realizing sales; but
unless the whole list reacts, it Will 90 forward
| again; and the NJ. K. & T. stocks should be
good for higher figures considering the excel
| lence OF the traffic outlook for the road II is
| to be noted that Atchison common crossed 90
the other day. when President Ripley came out
with bull interview on the business conditions
and prospects in the Atchison's territory 1t
may be assumed there will be a great many ex-
| ultant u told you sos among the Atchison
people when their stock sells as high as Union
Pacific, which the more enthusiastic among
them have repeatedly declared it will
II is astonishing TO see stocks which a few
years ago seemed by their bulk hopelessly out
OF sight of dividend. now by the immense
growth Of the earnings of the companies brought
into the dividend paying list But after all. IT
is not more surprising than to see the farmers
of the country enjoying years of prosperity with
wheat at 75 cents. whereas il was not so far
in the past that the same classes thought them
selves about ruined when wheat broke dollar
Dollar wheat at Chicago used TO be thought the
standard price upon which the welfare of the
farmer absolutely depended India and the
Argentine knocked it out.
Outside Of the railroads there has been a good
deal of trading in the copper stocks The talk
about the copper trade is still very pessimistic.
but the Boston & Montana company. tbs prin-
cipaI subsidiary company Of the Amalgamated.
has just paid its 81 per share; and the prinei-
pal subsidiary company OF the United Copper
Company has also paid the same dividend The
steel stocks have been steady 10 strong. and
this is substantially all the Morgan people want
to do with them. They are on guard TO defend
~, @Iye rx-r-Ta