New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-01-11
financial
The Financial World.


would go up anyhow. 1t has gone up
January rise" has been scored, which Is not
over yet; though irregularity has developed
from profit taking in some stocks. and con-
siderable break in Reading. There are several
stocks which slated for advance befors
this movement is over.
The break in Reading. which dropped n
about eight points. followed the announcement
by the President Of the p. & o. road that
controlling interest in the stock had been d.
vided up between his company and the Laks
Shore; or stating the fact in another way
that Reading had been partitioned between the
Pennsylvania and Vanderbilt interests That
this had beer done. had been current gossip liz
the Street for some time before official con-
firmation was given When that came. IL
a notification also. that the needed number Of
shares had been acquired; and OF course. thai
the Reading stock still in the market. waI
minority stock Then there was a genera
movement to get out Of it-considerably aided
It may be surnised, by bear operations At
the same time. the Reading As. advanced; FOR
the reason that what seemed against the
speculator was favorable for the investor
After so quick fall. Reading should be
titled to a. trading rally.
So far as the coal trade is concerned, the
problem still is how to get enough coal to meet
the demands; and this applies to the West
which burns anthracite. The Independent coal
mine owners-"operators.'' as they are called
have broken away from their contracts TO sell
their coal at the mines to the carrying conn.,
panies at IS per cent of the market price. and
doing their own shipping. selling at nearly
twice the price the railroad companies are ask.
ing-or at least. they say they are asking
IL appears If the system which obtained be-
fore the strike had gone to pieces under stress
and that now it was a game of every one for
himself; which must continue until supply can
get ahead Of demand. and reserve stocks be
again accumulated. 1t means great earnings
now for those who have coal for sale; but 10
must rot be forgotten that the strike which
has brought about these conditions. cut earn
ings to nothing for the months 1t lasted
Erie was one Of the properties referred to
last week, as likely to benefit considerably from
the urgent demand for coal: and IL vas noted
also, that there were rumors Of competitive buy
ing in the stock During the week. the buying
Of the Erie issues has had much the appearance
of this 1t is very certain that important peo-
pie. who would be likely to know the property
thoroughly, have been buyers. It is known that
Erie must raise more money. and win do So
when the financial situation becomes favorable
About ten to fifteen millions, IL is said will meet
requirements The expenditure Of this money
Is calculated to bring immediate returns large
enough to take care OF the interest charge The
first and second preferred stocks the first now
paying per cent, may be commended to the
attention OF the investor. That the one will
get its full per cent in no great while is sure,
and also that the second will be promoted to the
dividend paying list
Erie common Of course is speculative; and at
40 or Whereabouts seems high enough for a non
dividend payer. But IL there is TO be any con-
test for control or If it is necessary to keen
the stock guarded. 50 to speak. against the eff
forts OF others to buy control, it could easily be
that Erie would maintain itself at a higher level
Take B. r. t. for examples stock which has
never paid dividend. and yet has persistently
maintained itself between 90 and 20 If Erie
were to drift into similar speculative posIrIOn,
present figures would be cheap.
AS soon as the labor troubles with the Union
Pacific settled, that stock. it is claimed will
surely advance. 1t may be assumed that a set
Element is about assured. since points to buy
the stock come from sources which, while not
OF the very highest. yet high, and from
which nothing Of builish character has been
heard until for quite a time past The
stock has certainly acted vel lately; having
market fireworks in 1t, but creeping up steadily
and holding its gain.
Fireworks in plenty were let of in Rock ISL
and When the stock reached SO on Friday. il
suddenly appeared as If all Wall Street were
rushing to trade in it. Big blocks streamed
over the tape; and under the immense trading,
the price actually advanced II per cent. to %.
Yesterday, after more fireworks in the inter-
val, it closed at 80. The traders were asking
what all this pool manipulation meant traf-
fc agreement with the Erie mentioned;
also representation OF Rock Island on the Erie
board About the latter. We have no inforna-
ton: but the former seems to be true.
Another story was that Rock Island and
Atchison were be united; and yesterday there
was great buying OF the latter stock, somewhat
like the previous performances in Rock Island;
only the buying took Atchison up Us per cent
1t did not hold. however. One leading house
was mentioned as being the buyer OF a very
large block of the stock, the buying of which
started the movement in it. One thing in the
railroad situation is toerably clear--Atchison
and Rock Island must work together, or they
will work in antagonisnn. for their southwestern
extensions alone make them dangerously near
neighbors.
A vague runor hoated about OF Pennsylvania.
buying Atchison: but this is an old story
based however on truth. Pennsylvania people
have always been considerable holders OF Atchi
son stock. This is not the same as the Penn
syIvania corporation. There Is nothing yet to
show that the corporation has moved from its
settled policy of not extending beyond the Mis-
sissippi II spends its money in purchases OF
properties. and making costly improvements be-
tween that river and the Atlantic seabosrd.
Doubtless the proposition to authorize an in
crease OF Pennsylvania stock equal to the
amount now outstanding, had its share in start
ing the runors of Pennsylvania taking over the
Atchison system 1t was rather startling propo-
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