New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-07-29
fnanrial.
OFFICE OF
CLAUDE ASHBROOK.
Broker and Dealer in
STOCKS and BONDS
40 Walnut Street,
Cincinnati, Ohio.
July %, 1902.

July &C. 1902.
Detroit United, Prince of Traction Stocks. has
finally crossed the Rubcon, and. having been
strongly REINFORCED by broad contingent of
buyers in Eastern markets is now we'll on it's
way TO par 1t is extremely satisfactory to note
that the small army of investors who have gone
into Detroit and held on since it became a
popular favorite in the local market now have
a profit in every instance. The present condition
of the market holds out practical assurance
of steadily increasing values in the price move
ment Of the stock. When the upward movement,
based solely upon public recognition OF the
merits of Detroit was started at ia the latter
part of May 1t was not expected that the rise
would be free from obstacles. 1t well
understood that practically the entire population
of the city of Cleveland carrying the stock
On margin; and when the price movement adj
vanced to the rs point and Cleveland holders
dumped their thousands of shares on the market
to an extent that resembled eloudburst it GER
tainly did look like the oldest inhabitant had
liqudated his holdings. But the public in other
money centres having recognized the fact that
Detroit United really possessed the merit, has
been quietly but steadily absorbing all the good
things that Cleveland getting rid of. BY
and by Cleveland will wake up to the fact that
not only in Detroit United, but In other stocks.
she is losing some securities which hold In their
fortunes.
But finally the 10 point passed and there
were few more who had bought year ago at
50 and were tenaoously holding until they
could get out even. Hence the scarcity Of stock
between 20 and so. and the halt of the last few
weeks, while the public was continuously taking
the stock around so and when that had all been
taken there was not enough TO supply the
urgent demand. and the price jumped in two
days from S0A to So
With all this steady absorption of stock chang
ing from weak hands to strong boxes it is easily
understood that the floating supply is gradually
decreasing, while the demand, becoming the more
urgent, must necessarily force the price level
higher Since the movement set in the city of
Montreal alone has taken out of the market
from 200 to 800 shares of Detroit daily. 1t has
been but year since Toronto and Montreal be-
gan to buy Twin City Rapid Transit around 60
and II is now stronger than in its history
at 120. 1t has been pointed in these letters
previously that of the two stocks Detroit United
possesses the greater merit. and facts and fig
ures We're produced in evidence. Canadian in
Vestors therefore, have an example to follow.
In Montreal they claim Detroit to be worth at
least par. and are buying II with full conf
denee OF the price reaching par, and that very
soon. Incidentally. Montreal in a financial way
is amply able to buy the market up to par;
and IL is only fair assume that the people of
Detroit Will wake up about that time and buy
it up to 125 The fulhment of such view
would be but a practical demonstration of
human nature in the stock market: the theory
, of going home to roost clearly illustrated.
1t would be manifestly unfair In a bull move
nent dependent for its success solely upon gen
eral public cooperation. TO attempt TO manipu-
late price movements which would result in
creating fictitious quotations followed by dis
couraging depressions, and so the absorption
alone will regulate the pace of the movement
Around So there is very little stock for sale,
and there will be less at 90; hence after the So
pivot is passed the rise TO 90 will no doubt be
| a repetition of the jump from 10 to 80 and again
from 50 to So
Detroit United Will earn at least III on its
stock for the year 1902 You can draw your
own conclusions as to whether the dividend
rate will remain at 4qe or be increased The
property is free from all floating debt and ample
resources In its treasury for any improvements
and extensions necessary There is no author
ity for the statement made that the dividend
is TO be Increased People who in close
touch with the Directors believe that the div-
dend rate will be increased next year to so. If
this is done. and 1t is my belief that the dvi-
dend will be increased. the stock Will go to 100,
The increase in net earnings for the first six
months is 14126 greater than last year. The first
six months cannot compare with the following
half year, which includes July. August and Sep
TENDER, the three biggest earning months in the
year.
with net earning capacity of ia to go
it's stock there would be reason why the divi-
dend should not be increased in view of the fact
that the company has no floating debt and
future extensions and improvements pro-
yided for by treasury bonds.
At the time the movement In Detroit
started at II to ~ there were a few skeptcs
who secuted the idea Of an upward price move
ment, and the sale to the general public of
stock. The 10000 shares were all marketed
with the general public at prices ranging from
II to TO-
Syndicate after syndicate had been organized
to purchase the Everett Moore Stock 10000
shares Any of them could have had IL all at
$40 per share CASH. ] say cash advisediy, for
there was a great deal more talk than cash.
None of them got the stock. II was distributed
among the investing public here and In the
East, and in Canada at an advancing scale. The
result is that the public investors who were
the recipients of these favors now have hand
some profit.
And the movement is still on. The advance
has only reached the halfway station Par is
the objective point. After ali it was only a case
OF mistaken Judgment, and / trust that the
skeptical contingent referred to, who know, OF
course, what's what, will know better next time.
CLAUDE ASHBROOK.