The Washington times., 1902-01-20
DECLINED.

nual sinking fund of $500, 900, can be
placed ahead of the adjustment bonds so
can an issue of $3.50 .000, 900, and 1t is
equally clear that for this form of secur-
ity no stockholders vote is necessary. On
the one hand the adjustment bondholders
have been somewhat disturbed and on the
ether the stockholders. The sudden in
lection of a s3,700,0G0 per snnum fixed
charge ahead of both classes of security
holders is quite sufficient excuse.
Street Criticises Dividend IiberaIity.
The company seems to have determined
to make its improvements at once-hence
has borrowed a large sum of money.
What the street is disposed to critici9e
is the payment of per cent dividends on
the common stock in face of conditions
requiring s3o,00o,OOO bond issue. The
interest and dividend requirements OF the
Atchison road now amount to an annual
sum of something over s2l .00O.O 900 against
officially reported net earnings a good deal
less than that amount in all years prior
| to 1900-1901. No reorganized company mas
SO largely increased its payments to Sc
| curity holders as has Atchison in the last
two years.
The New York Central stock issue for
| improvement is the compaDy's response
TO the deal rumors of last fall. This
company has for years relied upon capital
| issues for its improvement work, and now
needs more capital. IL ought TO be able to
do good deal with 2l.0G0, 600 realized
from the first instailment. The contribu-
tions OF New York Central to betterments
from income account in the past three
years have been perhaps 5000, 600 Penn
vi Iy. ia { ri for he ittet
ended will probably be at least twice that
amount. Yet Pennsylvania stock paying
6 per cent. sells some 10 per cent cheaper
than New forh Central paying per cent
Vast Blocks of Securities.
The Financial Chronicle" has com
| piled some interesting figures relating to
listings during the past year on the New
York Stock Exchange. The interest CEN
/ tres in the issues OF new capital, the large
amount of which shows how the market
| is now struggling to digest the food with
| which perhaps IL has been oveFfed The
! issues of new bonds amount to $220171, =
| 700. and this was once exceeded. in 1888
/ when the total new issue lsas s245 ,2l9, ,4SO
! Old securities, stocks or bonds were re-
| placed last year by S6Sl ,5GS, 800 of bonds
{ and old Issues amounting to $2l ,210, leo
| were listed, so that the total bonds list
ings aggregate $925,010, 100, the greatest on
record.
The listings of new stock we're far above
any other year. being 1929, ,537 $50 the
/ nearest approach to which was in 1899
1 when 1911, ,420.2SJ were listed. In the last
/ three years the listings OF new stocks ag-
! gregate 81 ,057, sos, ,307 The replacing OF
| old stocks with new last year amounted
! to 81 1876, ,2S5 GG5. this transaction embrace
! ing the United States Steel issues. The
/ nearest approach to this sum was in 1896,
when S514 1853 .6i3 of such stocks were list
/ ed. And still other new bonds appear this
! year.
/ Estimate of Steel Trust Earnings
4 semi official estimate OF the earnings
| Of the Steel Trust for its first year is that
there will be surplus of s2i. .624 .232.
! According to this forecast the total
/ earnings for the great billion dollar trust
I for the year will be Sill n" 722 There is
TO be deducted from this total Sc. gl7. 10
( for the sinking fund on United Sites Steel
! Corporation bonds and bonds Of subsidiary
: companies, and $12,3Z7 6C2 for deprecia-
/ lion, roserJe, and contingent fund and ia
provement The interest on the bonded
J debt Is st5 200 800 a year. which leaves
! balance applicable TO dividends of $780,,
/ 633 .97i The dividend requirements fGI
n" preferred stock AZ : per cent amount
annually 10 S35, ,679 525. and for the com
mon stock at per cent annually to $40.
! 500 749 making a total Of over S55 147,
! IA. The dividend requirements of the
( cuts landing stock Of subsidiary companies
+ amount TO only s53.+Gs year This leaves
/ a balance to surplus account Of S24 626,
232.