New-York tribune., 1902-08-31
financial.
The Financial World.

Z
/ ingly improved The market has been broad
ened which was what it needed. IL the specu-
/ lation does not get rampant and make trou-
! BILE in the money market, we may have good
fall business. AS every one seems to be the
watch for trouble in the direction OF money. II
will probably be averted. But for some time to
/ come call rates win be higher than they have
! been.
When the market began to get stirred up
Southern Pacific the leader. and rose to a
record price above 70. Since then 1t has taken
a rest maintaining itself, however, very close 20
its top price Union Pacific and the Atchisons
| have come to the front; while the pool in Cana
/ dian Pacific have also pushed up their stock
/ The buish feeling Union Paeife is quite
| strong. and from the way the stock IS being
/ bought. a substantial rise seems assured, bar
| ring accidents which would affect the list gen
/ orally. The strong argument advanced IN favor
of the stock outside of the excellent outlook for
business on. its own lines. is the certain fact
| that when the Southern Pacific starts paying
| dividends. the Union Pacific treasury will have
! a big income poured into it
| The T. p is the largest stockhoider Of the
Southern Pacific. Exactly how much stock it
| owns is not yet known except to the directors;
| but that it owns a very large amount. possibly
| a majority of the whole. is certain Upon the
money it paid out for this purchase, it is now
receiving no income: while the interest on the
! purchase money is part Of the company's fixed
| charges Therefore, while with this burden the
Union Pacific is still earning considerably over
the dividend it pays it follows that all 1t VIII re-
| ceive in the way of dividends from the Southern
| Pacific will be so much clear addition to net
| income That addition may be nearly equal to
| the dividend the company is now paying
In respect to the Atchisons, the preferred
/ stock seems to be most favored by outsiders,
/ while the insiders talk mainly about the COM
mon: one prominent director asserting with
| characteristic vehemence, that come what may,
| the business the road will do this fiscal year
| will make the stock sell at 12O. The preferred
| "a per cent stock-has been bought lately IN
! good sized amounts, and price anywhere be-
! tween no and 115 is talked Of The reliance
| for this is the same-the crops in the Atchi-
! sons territory are assured: and also behind the
nrafsrred there are over 100 millions common.
| which is paying dividends
| It may be we'll to keep eye on the VI X T.
| issues There are only IL millions OF the pre-
/ ferred; but the common is rather numerous
| Earnings are ample to pay a dividend on the
! preferred and leave surplus for the other
| # looks as if some one were picking up these
| stocks carefully.
Missouri Pacific has acted rather sIuggishly
! Io+aIv and created the impression that there
| has been much realizing by the bull pool in IL.
| which is supposed to mean the younger Goulds
| They, possibly, have been devotng most OF
! their attention to the movements OF western
| Union To them is credited, also, the opera
| tions in Texas Pacific
| The reduction of the dividend on Readlnsprs-
farred from a to a per cent rate, thereby
continuing the voting trust; and the lssuahe7
| of Mr. Morgan's circular asking for a CONTINUES
! ance of the voting trust in Southern Rairoads
| have been two leading and related, events oza
| the zraek Strange to say, the buying OF Read-
| ing stock after the reduction of the diVloends
| became large and what may be called ursen1.
II had all the appearance of competitive buyins'-
/ That the company has lost heavily by the Strikes
I is obvious and undeniable; but that people WnR
/ ignore present losses and buy for the futures
I are in the market for control OF Reading seems
| certain. The continuance of the voting trusc
| amounts to little II any of two or three power
| fnI interests can make show down. OF a de-
cided majority of Reading stock. 1t IS wen IN
derstood the voting trust will be surrenoereo III
/ the cause of general harmony.
I The voting trust Of Southern Railroad stands
| on a different footing. The circular letter IS
sued on Thursday was the one supposed 10 De
! coming out on Saturday last, and was referred
| 10 in this column. Instead OF it, the PERKINS
! affidavit in the Steel Company suits was is
suad Mr. Morgan asks a renewal of the trust
! for five wears which it is for the certificate
| holders to assent to or not, as tney please
The theory of the Street is that the circular
! shows the Morgan people do not own great
+ deal of Southern stock. If this be true and the
/ assent asked be given-whch is almost certain
II will he n voluntary testimony to the sue
| cess with which the trust has been admins
| +arad. in that respect being quite different 10
tba RocL Island scheme, where the assent NOM
! inaIIv asked is given by the people who ask IL
| A much commented on reference in the cIrcr-
| lar 10 the events of the past eighteen months
! in resnect to sudden purchases OF control or
| raiIroad properties refers of course, to the
| famous Northern Pacific episode Although
within that period control of Louisville & Nash
| VILE was suddenly taken from a feeble and
! rarveIess administration, this was bagatelle
| corpared with the other; and Furthermore, con-
! troll of L. & N was promptly turned over 10
| Mr. Morgan which is one of the reasons 1or
| tho issuance of the circular. The proper dis
| nosition of that property is still 10 De deter
| mined -
| The circular however. in connection Win
| the reduction of the dividend on Reading the
| Rock Island scheme and the colorado Fuel
| incident has started keen discussion oI lhs
| nroper or expedient, methods OF conuoi Oh
| corporate properties. Three methods are prom
| inently presented viz:
| l. voting trust-Southern Railway anu
| Reading.
> A minority of the stockholders. comoiheu
| with voting trust-Rock Island
> A six shooter and an injunction-Coloraoo
| Fuel
| obviously the latter is of limited application
! for while II is all right in Colorado its at
| tempted enforcement East of Colorado wouio
| probably land the enforcers in States prison
! bod