Evening star., 1905-08-29
BULLS AND BEARS


NEW YORK. August g. More than q
suspicion Is entertained In some quarters
that the breaking of of negotiations for
that II being worked for the last time. In
formation had In the last few days seems to
Indicate that the bluff. II It IL to be regard
ed as such. u being put up with a careful
regard to certain stock market conse-
quences. There was what looked like very
good selling Of National Lead on the last
bulge to 40. and when the price had dropped
to ~ on this selling and the announcement
that negotiations were on again, It was
suggested that there was prospect OF q
bitter trade war between the United Lead
Company. backed by American Smelling
and Refining interests, and the National
Lead Company.
Since then there has been steady alb
sorptfon OF National Lead stock. helped by
manipulation apparently intended to facili-
made as strongly as possible by men who
are IN q position to know the facts that
there is not even q remote possibility of a
trade war. It is furthermore asserted that
cluded, which seems partially proved by
the authorization Of the issue OF sufficient
National Lead stock to take over the Unit
ed Lead Company-with only q detail left
for adjustment.
1t is pointed out that this detail, compre-
hending the reinvoicing OF stock and assets
OF both corporations, Is one OF considerable
magnitude, entailing a vast amount of cler-
tcal labor at height of busy season. and 1t
inevitably caused a temporary postpone
ment Of the consummation OF the merger.
and 1t Is suggested that advantage was
taken OF this fact by certain interests for
purposes OF their own to make the situation
appear In a different light from that In
which 1t should be regarded.
Chas Minzesheimer & Co. have issued a
circular dealing with the prospects of spec
uiative bonds and forecasting period of
activity and strength in them soon. The
circular goes on to say: 1--WE know no
valid reason why the United States Steel
Corporations sinking fund per cent
bonds should be selling where they are with
the steel corporations record of full 7 per
cent dividends on It's preferred stock"
fhe Chicago, Rock Island and Poetic COL
par value OF the old Rock Island railway
stock, few shares of which sold at auction
last week at 17O1a. price that gives the
pohds a tremendous margin of safety, so
lar as the underlying security is concerned.
And who Is likely to question the sa fety of
the interest when the Rock Island Company
mas earned since organfza ton an annual
surplus applicable to dividends on the pre-
interest charges already deducted?
The collateral trust per cent bonds Of
the Distillers' Security Corporation can be
called at 1O5 after 1908, are convertible into
the corporation's stock at par until October
l. 1917. and the interest would seem to he
amply safeguarded when It Is considered
that the stock is in receipt of per cent an
nuai dividends, with substan ntfaI balance
tor surplus account. We understand, more
over. that quick assets are sufficient to nav
or the bonded Indebtedness.
The American Tobacco Companv's IA
according to the figures compiled for the
year ended December 81 last, had as a
margin OF safety above the amount needed
TO pay their interest a balance of SIS 79l. =
7O7. applicable to dividends on the common
ana preferred stock or about five times
the interest on the As. The Central Leather
5s are secured by a first lien on all the as
sets and lands Of the company and by all
stocks and bonds of the subsidiary com
panies, which include all but a small per
centage of the United States Leather secu-
rites.
TN the balance sheets of last July total
assets of the company were given as $685.
200. while there Is only total Of $45-
100000 of the bonds, Of which $2S, ,OOO, COO
are outstanding. The important movements
which are taking place in Pennsylvania,
Erie and Brooklyn Rapid Transit stocks
certainly lend additional market value to
the convertible bonds of those companies.
THE Missouri, Kansas and Texas second
As are, after the first As. mortgage on
16O1 miles of road and on land grants in
Indian Territory. while for years the COM
pany has earned per cent on its preferred
stock and something on the common"
1t Is stated that there Is no purpose in
the circular to go into details. but only ''to
call attention to a feature Of the Situate
In securities which. we believe. deserves in
vestfgation." A list Of speculative bond
issues is appended.