New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-03-26

rushed upward rapidly. but top prices were not
maintained During the coming week or two
we are not unlikely to have disclosures with
market effect Only foolish people affect to be-
lieve that legislative inquiry is inconsequential
text for jests
Colorado Fuel and Iron stock has been recent
ly sold in large volume for the account Of in
siders, who, for some curious reason. 90 nor
disclose their identity as sellers, careIuily Dor
rowing stock for delivery and thus making an
apparent short interest.
London bulls on Canadian Pacific VINO nave
made large profits the rise of 500 shares are
now confidently taking hold of Duluth. south
shore and Atlantic. haiiing II as second 500.
Canadian Pacific is about to add important nile
age to the Duluth property.
Chicago Great Western issues improve. Both
London and Berlin have been buyers this week.
One Chicago interest is credited with having
taken over 100000 shares of Great Western
common.
The long congested pool in Rubber Goods
load it's holdings The Street is allied with tips
favoring the stock. which may promote the ef-
forts of the aged pool to make an escape.
Naturally enough disappointment was evinced
over the adjournment of the United States Su-
preme Court without the issuance OF an sx-
plicit mandate to it's Northern Securities dis
trfbutfon ruling Spectators always find IL
easy to be nervous. DESTROYS that everybody
hurry That the Supreme Court Justices do not
disturb themselves on this account is not very
hard TO understand. When. all in good time
however, the mandate in its detail does issue. we
are likely to have prompt and important sequels
development awaiting involves what IL known
in Wall Street the Vanderbilt "deaP-the
transaction wherein figures the future or New
YORK central and its auxiliaries, the Northwest
and the Omaha. and perhaps the Union Pacific
This deal is of such vastness that only pre-
tenders affect to discuss the details OF IT,.
Its success VIII go far toward the making OF n
new era in the American railway world. One
feature OF 1t is not at all disguised-that which
mas to do with those properties subordinate
related to the New-York Central and Lake
Shore system. Conspicuous in this group is the
Cleveland. Cincinnati, Chicago and St. Louis
Railroad (pOpularly called in Wall Street thu
Three C's and the Big Four. whose advantage
from the combinations proposed viii be very
largely profitable 1t is no longer secret that at
its next dividend day the Big Four is 10 have
its dividend rate fixed at per cent and con-
sentative insiders are forecastfng per cent
rate speedily TO follow. The good fortune of the
Big -Four property is being emphasized by the
rapid advance Of certain important feeders
winch 1t controls In this group the Peoria and
eastern Railway figures ConspicuOusly as
most inspiriting example. Here is a railroad OF
500 miles in the very heart of that part of the
central West which is most prosperous. whose
GLIDING S40O0O0O OF per cent income bonds
whose interest is being earned four times over.
shares-of which 65 OCO shares are I'm the Big
-Four treasury, leaving but $3.50, 900 Of stock
In the publics hands-and the entire capital
STOCK showing earnings now at rate materially
beyond . per cent per year That such Sc
curity should be selling the New-Yorl1 Stock
Exchange around $40 per share is anomaly.
The history Of Peoria and Eastern is in line
precisely with the history Of all the subordinate
and auxiliary properties of the Vanderbilt sys-
tenn All other considerations are put aside IN
the execution Of the established policy Of first
and foremost making railroad perfect phys
ically. Thus in Peoria shows merely the
policy which is stiI dominating in Nickel Plate
(whereas in Peoria there is operating expense
percentage beyond so per cent?, the same policy
that prevailed in Michigan Central so long. and
the identical policy which held Omaha down uT-
til 1t was made stalwart that from under $40
per share IL has risen to $500. And that this
q nH mil ---f0r hos NJ "a
manner of doubt be raised The railway
mana gement that takes account chiefly Of the
future can find in a policy like this thorough
justification And as results have worked out
splendidly in Michigan Central and in Omaha.
in Peoria and Eastern the eventual reward
is just sure
Peoria and Eastern's gross earnings were IN
der S2O00OO0 five years ago; they are beyond
S3.00OOO0 now. Its interest accoUnt-hxed
charges-amOunted to over S44O,OO0 annually
five years ago; they only about S4O00uO
now. The annual surplus then fell below ST.
500. and since 1900 il has averaged close TO
S3OOO0O; and this exhibit is IN the face OF a
record altogether extraordinary in the way that
exhibits made for maintenance Of way and
equipment expenditures out OF cur
rent earnings for INSTRUMENTATION show that
while for total maintenance" S69OON0
garded adequate in 1899, there have been adj
vances continually and tremendously until in
1903 and 1904. such improvements paid for out
OF current earnings were over S2,3UO.OO0-the
percentage Of expenses to earnings raised last
year substantially beyond so per cent.
This is a severe tax-foT the present What
il means for the future-fOr the early future
is just as evident. In this way is railway pro-
ductiVe1ess assured.
Here is analysis of Peoria and Eastern's
immediate future. as made by a competent rail-
way authority
Operating expenses t6s per eent'.-..-.-.- 2e25seS
Net earnings 81 o4a es6
Fixed charges ............'.'''.'.. 4e426e
r6 aaf pef cent on s4oo income bonds 1900
so Ace
But the statement of earnings for the month
of January 1909 shows an increase in STosS
OF $4,000 and an increase in net of S1-UUl
This indicates retrenchment in expenditures Al
the same rate for q year the expansion IN he-
surplus for 1904. would be equivalent TO Oi2 per
cent on the stock.
If IL be determined-and the policy Is reason
ably within bOunds-tO distribute dlVlGends 20
Peoria and Eastern stockholders, the gam %
Big Four would be (even on a per cent 0aslsl
equal practically to a full l per cent upon the
entire capital stock of the Big -Four Company
If per cent were the dividend rae tand more
can be shown to be sarned) the payment mo
Big Four's treasury would be equal 70 Iis per
cent upon Big FOUr'S capital stockton thels
are intimatiOns that Big FOur's 90 per cent OF
acknowledged ownership is actually beyond ~
per cent OF the Peoria and Easterns stOeH'
What under any circumstances, seems sure IS
that some substantial dividend is assured 20
paor,a and Eastern NEUTRALITY-SUSPICIOUS. for
the corporation or individual holders
Any Vanderbilt security at this JunctUre Is @n
attractive security.