The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-13
LOCAL STOCKS AND BONDS
BIG BLOCK OF CONSUMERS
TRUST STOCK SOLD YESTERDAY.
Advance i'm New Telephone stock and
Rights, Feature of the Week.

Interest in the local securities market yester-
day centered in the advance in Consumers Gas
Trust stock. The stock advanced another 100
points on Judge Andersons decision that the
FEDERAL Court has jurisdiction in the case, and
a large block was sold at a price near 100.
There were bids on the curb OF 100. and the
stock was offered at 1000. The discount OF the
bid under the Offering price shown the strength OF
the stock yesterday. The block sold yesterday
was one Of the largest transfers in this issue
lately. and 1t went at the highest price paid
for the stock for several months.
Although the stock seems very strong just now,
brokers regard It as one OF the most speculative
issues in the local market. and one broker
said il would not be at all surprising TO see the
stock lower the coming week. on the other
hand, he said. the advance. which began Friday.
may continue. and the issue may be carried
nearly as high again as II was last fall.
Since Consumers Gas was at 1900 bid on the
Exchange last fall IT hes sold down as low as 800.
Until a few weeks ago the bid was unchanged at
500 for weeks. A short time ago one OF the
washington-street houses put the bid TO 800. where
II was maintained for a week or two. Then 1t
went back 10 $50. and Friday advanced to 1000.
Only two houses handle Consumers Gas Trust
stock. The broker who is referred TO above as
saying that the movemen of the stock next week
is very uncertain has been dealing in this stock
for sixteen years.
The feature OF the market the first part Of the
week was the advance in New Telephone stock
to 30. and sales of eighty shares, in small blocks
at this figure. The stock opened Monday strong
and advanced from 81 TO 90 on the bid. without
a sale. The following day it went one point
higher. On Wednesday. with the subscription
rights In the indianapolis Telephone Company
on. sixty. shares were sold on the call at 30,
and the. following day twenty shares more We're
sold at the same figure. The demand was a
little slow at this figure Friday and the bid de-
clined Y point. to s91s. without any sales.
The strength of New Telephone is shown in
another way besides the sales OF nearly $4,000
worth Of the stock at 90. A premium OF s. per
share is bid for the. subscription rights Of the
stock. A holder OF New Telephone stock is in
a position to make a 9 per cent. investment in
the Indianapolis Telephone Company. For $500
a holder OF ten shares OF New Telephone stock
is entitled to take ten shares Of common stock in
the Indianapolis Telephone Company, $1,000 par
value, and with this he will be given a bonus OF
PA shares, $3.50 par value. Of preferred stock In
the newly-organized company. The common
stock will pay 3 per cent, and his dividends
upon that will be $50 a year. On the preferred
stock he will receive 6 per cent. annually, or SIS
on his 2k shares. Thus on his $500 investment
in the new company he will receive dividends
Of per cent. a year.
T ?
BY the extensions to be made to the property
of the New Telephone Company by the Indian
apolis Telephone Company the earning capacity
OF the company will be increased to nearly $3.50
900 a year. or nearly 20 per cent. gross on
the 81, zoo. 900 capitalization. The stock is on a
per cent. dividend basis and pays about 64
per cent. at the prices at which it has sold this
week. The indianapolis Telephone Company will
guarantee the dividend OF 6 per cent. upon the
New Telephone stock, when 1t leases the prop
erty.
The gross earnings capacity of the Indianapolis
Street-railway Company is about 81. 900 a
year. which is about u per cent. gross upon it's
$751; 900. 900 of capitalization. Street-railway stock
this week has sold at 81 and s7lk. one sale being
reported as high. as IS. Viewed from a purely
investment standpoint. New Telephone stock is
The New Telephone Company has not been es-
tabIished as long as the Street-railway Company.
of course. but 1t has already demonstrated its
Street-raiIway at its present price the New
Telephone stock surely ought TO sell around IS, or
better. with the rights OF.
Taking the week as a whole. the local mar
ket has been about as active the past week as
during the few weeks preceding. The weeks
sales Of stock aggregate 4s5 shares. Bouds have
OF bonds being only $4,000. par value-s1 600 New
Telephone second fiveS and $1,000 Street-railway
fourS.