New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-02-07
Financial.
The Financial World.

Not great deal o. interest ,v.x.
STOCK market the past week. until F-ts.-- :. 'ns
iloon' When the Street was considerab1,
ny tue announcement that Mr. Csssaf+ 49,.
announcer heaVy loan-some fifty miIfops
THIS time the attention OF the gtraa+ -. - 70
concentrated on the cotton. eorYaa -, AMY
markets; which had all broken so ,ioIa-., "A'as
the discussion was chiefly as To who vvo.--s
10 get broke. Yesterday rumors vera ,,.-.' -s
that number Of houses who have hear .-
.9'ihs IN these commodities had been ~.
io7@is- me Idea was that they were sbo-s
were forced to cover and when this - -
teFest was out OF the way. the coIIansa Co..
The first intimatiOn that a new Ioan
ing was on Tuesday. when Penns,,,,,.-,- 0o'n-
Gown from above 122 to below 100. s,d 80
selling was traced to a PhiIadeIpbia -
Next day more selling carried the pric. 20 r-o-
and yesterday the selling took the stocl. IN 49,,
Ito. The customary official technical denial =.
sent out that the Company did not intend - A.
sue any more bonds stock this wear r,,
Is true. but the money is borrowed all the sar,.
II Is not too much to say that annOuncen,a,. :.
TINS loan was received with CONSERVATION ~
common inquiry was Where IS Mr.. Ca.s...
going TO stOp?" In three years he has aaa.s
stock and bond obligations to the Pennsylva,,.
Company Of $50 millions OF dollars tncludI,s
this last issue
AS a financial operation this latest Iosn
sort OF triumph Of financing; because at mos,
unpropitious time these so millions were ra,z.s
with such speed and secrecy that the money wa,
secured before n word OF the transaction ho.
got out. But the question before the s,oc,
holders IS how these constant increases IN s,o,,.
ana bonds viii diminish the surplus over tia -.
earnings, and the stockholders have 70 co,y,a..
what margin there Is between the in..r.ss
charges Of the Company and the dividends.
it Is current gossip that Mr.. Cassatt desir.,.,
leave monument to himself in the Penrsvt-
vania system; and 70 do this he will have .,
spend In five short years. the money which q,
spending might well be spread over a generation
OF course the effect Of the announcements va.
depressing on the market: and is likely To con-
tinue 50. IL was specially marked in Iondon
where. however. a good proportion OF the loan
viii be placed. The proceeds are 10 be u,ed An
the Western lines: and the statement is n,ada
that none Of the money VIII be used to finance
the settlement between Mr. Cassatr and NJ
Gould. That settlement still awaits cor1plet{o-
1t IS Furthermore stated that 80 millions OF thu
30 raised has already been paid out: the %
millions additional being for new work 7.
looks. therefore. II the Company would be IN
the market again before this 20 millions fs ov
hausted The last annual report Indicated that
more money would be needed; but if f. a varv
different thing 70 announce in general terms
that funds would be called for at some time IN
the future. 10 be confronted with a sudden de-
mand for $50 millions.
The question the Street Is asking OF Mr.. cas-
ssJt, IS how far he Is in the water? II he can
see the end OF the demands he Is making on the
investing public. or If other people could see ID.
the situation would not be so disquieting: but
apparently each step forward only raises more
demands. and people who have Pennsylvania
stock are beginning TO ask how long the present
dividend viii continue.
Some good buying OF the Steels has been
observed. II Is rumOred that the railroads and
the corporation have come to an agreement n
respect to steel rails; tho story being that tia
principal roads have agreed 10 order one million
tons this year. condition that the corporation.
sells them at So per ton
Apart from the affair OF the Pennsylvania.
which cannot but have depressing effect on thes
list the week before US has a good deal OF IN
certainty threatened IN the trading; for with
three markets. cotton. wheat and coffea de-
moraIlzed. there is plenty OF work cut out f0s
the traders y price or between 70 and II
cents. seems 20 be considered new STANDARD
price for cotton; and coffee and wheat sOEas-
where about seven cents for the former. and
% cents for the latter. IN wild speculation
such as We have had the fluctuations viii DO
violent above and below these quotations, but
viii probably eventually settle about the figures
named.
There viii be considerable interest n keepins
track of the dealings in Pennsylvania AZ a
banking proposition the new loan is a great sue
cess: because the bankers have merely TO cal
culats the margin between interest charges and
net earnings. but for people who have the stock
there is not 50 cheerful an outlook They have
all the time 10 consider the diminishing margin
as each new loan comes out; and there appear
%. Ia ra emil Of Them CUTHBERT MILLS