The times. [volume] (Richmond, Va.) 1890-1903, 1902-07-01
A LITTLE FURRY
IN MONEY MARKET
The Rate Jumped Up to Twelve
per Cent. in Yesterday sTrading
AND PRICES WENT DOWN
But the Market Was Fairly Good, and
in Some Cases There We're
Substantial Advan-

liie STOCK market opened rather strong
ahd actlve yesterday, and prices showed
d disposition to advance until later on
| "heh the money rate went up to 7 par
| cent This was to be exDectad nc tha
| pdhhS nave been putting themselves in
| poSltloh to meet the July disbursement,
u,h;o t,'e sudden jump in the money rate,
when, by the way, afterwards went as
nish as i per cent, had the effect OF
mixing traders more careful and prices
deemed. ST Paul and Missouri Pacific
! were strong and active. and it looked at
| one tlme as though there was to be an
| other squirt in Southern Railway. There
were several sales Of the common stock
a. d. oo'2 ana 5,A, and the preferred went
" " 70 30. out the common afterwards sold
OIL somewhat. Louisville and Nashville
was more active and sold from 361a up =,
S9iL thg rh, back to S61. then jumped up to
tic 1t is predicted that that stock viii
soon sell at 125. Illinois Central was verv
w THE COALERS
there was very little trading in Nor
i0lk and Western and Chesap eake and
ONO, although it Is said that the strike
SITUATION along the Norfolk and Western
IN the Industrial list. Colorado Fuel and
IRON developed a. sudden activity and
gained several points, but was disposed
to sell off before the close Locomotives
preferred was stronger than it had been
1or some time past, one sale being made
at 90.
GOOD BUSINESS
The Steel stocks were somewhat heavy
and the preferred sold below 50 In this
connection Cuthbert Mills. the clever
financial writer of the New York Tribune.
says:
The Steel stocks were a little weak for
a time. but they rallied later What NAV
be the outcome of the suit in the Jersey
courts is doubtful: but taking a business
We" OF the contested proposition some
igures on its may prove enlightenng
Surprising that instead of the company
making the proposition it did. it had ,n-
dertaken to sell so millions more of per
cent. preferred stock 1t could not rea-
SonabiX have expected to net more than
30 tor it Then the cost would be this:
% millions at 10 per cent. Offs 5000 600
Seven per cent. in dividends 300 600
First years cost. $500. GOO
Fourteen years dividends. ........ a.. 600. 600
Cost in fifteen years. So, 500. 900
"Suposing. again. it issued 50 millions
of per cent bonds straight. The net to
the company might be put at IS. Then
50 millions at 5 per cent. Offs 800. 900
Five per cent. interest first year. 2.500,O0O
First years cost. 1000. 900
Cost in fifteen $40 coo 900
Now we take what result would be
reached by the proposed plan of COM
bined conversion of preferred stock and
issue of bonds; and it is found to be this
200 millions at Z per cent. .s14 600. 00O
$50 millions at per cent.........- u 800, 900
Saving the first year. L. 500, 600
Saving in the next fourteen years q 100000
Saving in fifteen years. So 500 900
Deduct cash to syndicate. 10000. 600
Net saving in fifteen years.. .sl2. 500. COO
There is the mathematical calculation
upon which the original proposition was
based. 1t may or may not be defeated in
the courts: but a business proposition
has any one come along with a better?'