The sun., 1903-12-10
FINANCIAL AND COMMERCIAL.
WEDNESDAY, Dec.

De6uHBS III OHc btoSh ohohCb DiOSNsJ"
Rapid Transit, almost entirely overshad-
owed all other transactions In the security
market to-day. This stock whose price
yesterday reacted 8 points from the high
point recently touched by 1t, to-day ad-
vanced 5ls points further, making a net
advance of over $40 share for the security
in less than as many days, and an advance
of S23 share in few weeks. The reasons
for so great an advance are not httle
puzzing. Taken in connection with
rise proport ionately rs great in the price
of all the local traction shares, the matter
seems to point to some sort of general
consolida, ion Of all the local transportation
companies. But those who are most IA
miliar with the conditions and prospects
of this business in our city have invariably
declared that there would not only be no
benefit but indeed positive disadvantage
from a combination of these companies,
which include the Brooklyn Rapid Transit
system the chief and most obvious draw
back being that under existing laws passen-
gers would then have to be transported
from one end of the Greater New York
to the ot her for one fare, that is to say,
practically, from Yonk ers to Coney Island
for 5 cents. Brooklyn Rapid Transit stock
at $50 share was obviously selling below
its real value: but admitting this, and fully
considering The increasing earnings OF the
property and also the valuable franchise
that VT enjoys. it is clear that the recent
sensational rise in its price has not been
because Of any general rush OF puohc
invest ment 1t is very we'll known that the
company is in need Of between SIS 900 600
and $20, 600 900 for pressing improvements
and repairs, and it is underst ood that TINS
money has been offered to it, but upon
terms, however. that we're not considered
inviting. Assuming that the company
will be able o sell Il large block of its bonds
at prices considerably Letter than those
now ruling for the same mort gage issues
in he open market, the additional fixed
charges entRilcd by a fresh bond issue
would so draw upon the company earnings
that pretty small surplus quantity OF
these earnings would be available for
dividends. In time, of course, these i'm
proycments would increase the earning
power of the company, but such time is
not near at hand. Judged, therefore,
from all the data that lies open TO the
ordinary investigate or the reason for the
rise in the price OF the Brooklyn Rapid
Transit shares must be either a purely
speculative movement or buying of stock
by some unknown capitalist interest which
desires to be represented in the company's
mana agement, if, indeed, II does not seek
actual control of the company. Specu-
lation regarding the true inwardness of
the matter is, however little more than
blind theorizing. and very little flows
from it of a nature to stimulate interest
in The general security list.
While the traction shares were advancing
to-day. nearly all other stocks, the single
notable exception being AmalRamated Cop
per, were heavy. An attempt to bid up
these stocks in the latter part of the day
met with distinct failure, and although prices
of the active shares were at one time well
above last nights closing, their final figures
showed only triiing net gains 1t must be
confessed that this liquidating tendency
was not at all unreasonable, adjudged by
the news of the day. The announcement
that the st. Louis and San Francisco Railroad
system. now controlled by the Rock Island
Company, intends to build line paralleling
through almost it entire extent the main
line of the st. Louis and Iron Mountain
Railway. which is the core Of the Missouri
Pacific system, marks rupture of friendly
relations between TWO great TallTOau IN
terests in the West that may he fully IA
far reaching in its results as that between
the Gould and Pennsylvania interests in
the East
The State of Missouri's report OF
the condition of the winter wheat crop,
which appeared this morning, showed a
deterioration Of the crop in that State to
the extent Of II points IA compared with
the corditon at this time last year. II will
be- recalled that the Ohio State report,
which appeared the other day. also exhibited
conditions similarly unpromising The fair
assumption is, therefore. that the Govern
ment's crop report. due on Thursday. on
winter wheat conditions in general. will be
unfavorable.
Statistics regarding. the production
of pig iron. as collected by the lead
ing trade publication were made public
this afternoon and showed that although
this production, by reason of the curtail-
ment agreed upon by manufacturers, had
fallen off in November to the almost un-
precedented extent of nearly 400 900 tons,
the account taken of pig iron stocks proved,
nevertheless. that stores of the commodity
in the hands Of merchants and at furnaces
had increased during the month from 597 1893
tons o 65s lO7 tons. 1t can only be gathered
from this that production of pig iron is still
greater than the consumption of it. To
this fact might have been due the peculiar
weakness to-day of the L nited States Steel
shares and sinking fund bonds.
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