New-York tribune., 1902-02-14
BONDS.
A 7 & 6 z rn 4s 1n4
THE DAYS OPERATIONS IN STOCKS.


Stock market trading was active throughout
the day. while prices. after early strength
generally. moved in an irregular fashion, with
weakness at the close. A decline in Brooklyn
Rapid Transit at the opening had no important
effect other parts of the list, despite the fact
that many operators sold short on the theory
that the proposed bond issue by the Brooklyn
company would cause reaction in speculative
sentiment The Brooklyn Rapid Transit Com
pany, in bringing out bond issue at this time,
recognizes the strength Of monetary conditions
at this centre and throughout the country, and
the large amount of money available for in
vestment purposes. 1t also doubtless apprec-
ates the fact that this is the age of big deals
and great opportunities. The stock of the com
pany closed Tuesday at 647s. bid. In yesterdays
initial dealings sales were made from 63 to
61h, but at the low price support, evidently
from inside interests, appeared. and no further
important decline was recorded. Traders
thought that the extent of the proposed bond
issue might foreshadow operations other than
those announced in the official statement, and
IT was suggested that the Pennsylvania Rail
roads interests Long Island might in some
way be involved.
There is no doubt at all that with one class
OF bonds covering its entire system, the Brook
Iy Rapid Transit system will strengthen its
financial position and eventually increase the
value of the stock The proposition, however.
10 issue bonds to the amount of S1J0.000.0O0
will probably stagger portion of the financial
community for a time, especially 1t would only
require about S62,0O0,OO0 to retire the present
outstanding mortgage issues, leaving $SS, ,935, 900
of additional debt and an increase of about 81
o00000 year in interest charges, as compared
with current payments this account. 1t Is
quite evident, nevertheless. that under present
he y'S OF cyrri1I
be sufficient for many years to meet the
quirements demanded by the growth of the
company's business and to pay dividends, and
it is easy therefore to see that some means must
be employed to give the road available funds
for Improvement work. An issue of $50, 900 900
of bonds will practically amount to reorganiza-
ton of the company's finances, but the bonds
ere to be issued the instament plan the
strain the money market will not be i'm
portaut. It will be interesting to watch the at
titude Of investors on the proposed new bonds.
If they believe the management of the Brook
lyn Rapid Transit Company believes. that the
future of the company will warrant such an
enormous increase in its funded debt, then a
willingness to pay good price for the new
''B- r. To- bonds Will doubtless develop. Brook
" is certainly growing rapidly. and under care
ful and conservative management the Brooklyn
Rapid Transit Company will be able to reap the
benefit Of great opportunities.
\ noteworthy feature of yesterdays market
was the demand for the low priced railway
shares Colorado and Southern, Iowa Central.
Missouri Kansas and Texas, Southern Rail-
way. Texas and Pacific. Wabash, Toledo, st.
Louis and Western, and st. Louis South
western were bought by good class of traders
al advancing values. There news af-
fectiny these securities buying evidently being
based on the theory that prices are cheap in
view Of present earnings and the prospects for
the rest of the year. Among the medium priced
shares there was an active volume of business
IN the Reading stocks, Colorado and Southern
first preferred and Southern Pacific. OF the
high priced stocks, Pennsylvania, Missouri Pa
cinc. Consolidated Gas, st. Paul and Manhat-
tan were active features. in the bond depart
rnent further enormous dealings were recorded
in the Wabash debenture Bs. There was
good distribution of business both in stocks
and bonds, and ample evidence in all depart
ments Of an increased public interest in securi-
ties
In the afternoon heavy profit taking sales
and bear pressure caused reaction throughout
the list and as a consequence many small net
declines were recorded at the close. Colorado
Southern issues were not affected by the real
tzing sales closing at substantial gains The
advance and heavy dealings in these issues
were not accompanied by news developments
affecting the property. but further reports OF
heavy earnings were received. OF twenty roads
reporting yesterday for the first week in Feb
ruary thirteen show small losses as
pared with the same week year ago. Con-
sidering the fact that grain traffic was smaller
in the first week of February than in any week
in many years. the falling off In earnings is not
surprising. In view of the enormous decrease
in grain shipments it is remarkable that earn
ings have not been more generally affected.
In studying current railroad returns it should
be remembered that comparison is made with
a record breaking period year ago.
THE DAYS OPERATIONS IN BONDS