New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-02-19

AS in Union Pacific so in other standard is
sues decided Improvement in value must result
from the vastly better business conditions now
-esta blished, Take. for example, what goes on
in the plans which propose the merger OF the
Northwest and Omaha, the latter having been
placed upon dividend equality with Northwest
preliminary TO what will be practically the
consolidation Of the corporation into one prop
erty-this independent OF the new control which
is ahead for the combined corporations. con-
troll wherein Vanderbilt and Standard Oil finan-
ciers have finally agreed even upon details
Omaha's development makes a record with
which only Union Pacific can be compared
During the past seven years gross earnings have
increased 80 per cent and net earnings have
increased IS per cent. while funded debt has in
creased less than 9 per cent and fixed charges
barely more than 3 per cent and this coinci-
dent with the fact that the company has gained
during this period more than one hundred miles
of road. paying for ii out Of earnings
Earnings upon Omaha common stock for the
last full year officially reported was over 10;s
per cent. and this despite the fact that millions
are taken out of earnings for extraordinary ex-
pepses-for construction and the requirement u
new property, Few Vanderbilt accomplish
nents compare with this which puts Omaha
upon equality with Chicago and Northwestern:
and it will not be surprising 10 see Omaha stoc5
soon approximate Northwest In market value.
1t may be that the market viii have special
ties for features for some time to come. There
are indications Of readiness upon the part OF
several groups of operators 10 take hold OF GER
tain issues that have been neglected in the
markets expansion Texas Pacific and 81. Louis
Southwestern in the Gould list. Peoria. Eastern
and Nickel Plate among the vanderbilts. with
Corn Products and United States Steel common
of the industrials. may figure consPicuously In
such movement.
FINALLY Chicago and Great Western, TOO, seems
ready to advance toward the materially higher
market value which intrinsic worth warrants
In 500 common Mexican Central ana Kansas
City Southern there are significant purchases
for foreign account. II is now practically
agreed that Kansas City Southern preferred can
go this Spring upon per cent dividend basis
Federal Smelling stock. to which attention
was directed in this review last sunday. has
advanced over Il points this week-a movement
natural enough in view of the fact that Il be-
comes known that Federal common stock is 70
go upon regular 10 per cent dividend basis.
The Federal Smelling Company is a corporation
whose, earnings have become simply phenOu-
enal-amply warranting the open Identification
OF George J. Gould and John D. Rockefeller with
the property. The Company produces approx
mately half of the lead OF the wOrld-and is
conducting negotiations. which when success
fully concluded. viii make the Federal actually
controlling in the lead markets here and
ceptiOnally important. by reason OF the fact
that electrical development is increasing uses
for lead AT rate and in volume never hitherto
anticipated.
The Federal COmpanys earnings have Tor
some time past been running above S12O,Oto net
per mOnth-S1, IOOOtO per year. The companys
entire outstanding capitalization Is S1SOOOONo
OF which $lo oooeeA- is--Ee represented by q per
cent preferred stock. with S5OOOOOo common
Dividends upon Si0OoNOao- preferred stock re-
Quire STOOOlO leaving SSiOOtO net profit upon
the S0,OOOOOO cOmmOn-l6 per cent These
earnings. moreover are about 10 be increased
largely through the operations of new British
Columbia properties. official calculations being
that such additions Will amount at least 20
S2I.Ooo per nionth-SsSOo,O asA per king
81 ,1OO.otO OF net profits available for the COM
mon stock-22 per cent.
Under such circumstances Il Is. OF course
readily appreciated why the common stock divi-
dend is now to be lifted to Ia per cent-even
this Increase leaving 5000 coo per year for sur
plus accommodated to the fund already beyond
Sl,25O.tDO OF cash on hand.
comprehension OF telling statistics like thess
makes clear the naturalnesS OF the rise Federal
shafes nave had this weeN-makss IL clear. too.
that further advance Is warranted,
a Az