Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-02
BULLS AND BEARS

Lackawanna's policy never to go west of
Buffalo, and 1t Is doubtful II there has been
any change in this regard 1t Is also doubt
Full II the New York Central would care to
establish such formidable competition as
would be afforded by the talked of Lack
awanna acquisition of the Nickel Plate,
which was offered to the Lackawanna some
years ago at a cheap figure. The new ru-
mors OF a Lackawanna-Nickel Plate deal
are greeted with skepticism in important
quarters for the reasons here set forth, and
there Is disposition to regard the ad-
vances that have taken place in the stock
OF the two roads as owing to the earnings
of the properties.
1t has long been an obvious fact that
when the Vanderbilt interests were ready
to lower them. the operating expenses of
the Nickel Plate could be reduced to a
percentage of earnings which would leave a
handsome surplus for dividends.
AS Tor the Lackawanna, 1t Is an open
secret that the road is earning this year at
least so per cent on its capital stock Of $685.
$4,000. It earned more than that last year
much more-and has profit and loss sur
plus shown that Is about equal to the stock
capitalization. How much in the way of
resources is buried away In the huge
charges that have been made for the last
four or five years for maintenance of way
and the like Is matter for conjecture, but
there Is more than a suspicion that the
Lackawanna is making so much money
that. in the language Of the street, ut
doesn't know what to do with it"
nevertheless, there are reasons for be-
lieving that certain persons in the Van
derbflt interest have been quite active on
the buying side Of the stock market lately.
possibly in Lackawanna, whose high and
advancing price Is likely to tempt holders
| to sell.
Wall street has been accustomed to dirt
cheap money for so long time now that
any little advance gets on its nerves, and
| 1t Is likely to require some education up to
what bankers would regard as more normal
rates before the speculative community
gets out of its habit Of starting to sell stock
on slight rise In the call loan figure.
Xxx
The Coal Trade Journal says today: 1.-The
revival in anthracite is certain to come
| with the advancing season. We feel equal
| ly confident that a brisker demand for btu
| minous will prevail, for the fact cannot be
| gainsaid that industrial requirements are
| on a larger basis than at any other time
| in the history of the country. We have
previously pointed out In this column the
| large tonnage required for the iron trade In
all its branches and the large tonnage con-
sumed by railroads. With these two indus
| tries running at the utmost limit of en-
deavor, 1t Is certain that the coal require
ment OF the country was never greater. for
| the iron trade is the barometer of all, and
| II it Is active the other smaller consumers
are also enjoying prosperity.
The whole cause Of the unsatisfactory
condition in the soft coal trade this year
| has been overproduction, and it Is to be
hoped that when an Improvement does take
place in time it will not be altogether offset
| by unwarrante- increase in tonnage output;
| in other words, that per cent increase
! on orders will not be swamped by 10 per
cent increase in tonnage sent to market
| I'VE feel convinced, however, that there
| is less 1iab-..ty of unnecessary tonnage GO
| ing forward from now on than at any ear
| lier period since the transportation service
| was unimpeded by winter conditions. The
| month of August always marks revival in
| the freight traffic of railroads. and from
| now ON scarcity Of cars and motive power
| will make itself felt. and ambitious shippers
| will find 1t less easy to increase their tom
| mage forwarded to market than in earlier
weeks when there was dearth OF tonnage
| moving on some lines"
| The directors of the Pittsburg Coal Com
| pany have issued statement to stockhold-
| ers showing the net earnings for the six
| months ended June 30, 1905, and quick as
| sets of the same date. The net earnings
| o. the company and all subsidiary concerns
| Except the MOnOngahela River CONSOLE
| dated Coal and Coke Company are given
| as 81. 136, 344, decrease, as compared with
| the same period last year. of $523, 993. The
| net quick assets are shown to be So, 259, 692.
| In explanation of the passing of the quar-
| terly dividend Of the preferred stock, the
| board says:
| THE business of your company suffered
| considerably during the earlier months OF
| this year on account Of unprecedented COM
| petition in the bituminous trade in which
| your officers had to meet very low prices
! made by competitors locally and in adjoin-
| ing fields in order to retain the business
| that may properly be considered as belong
| ing to the mines of the company. In the
| history of the company the earnings for the
| second half of the year have always con-
| siderably exceeded those for the first half.
| and there Is no reason to expect that this
| year will be an exception.
| at is recognized that an increasing work
| ing capital is desirable. and your directors
| deemed it therefore inadvisabIe to draw
| upon the accumulation of previous years
| for dividends. but rather to devote the sur
| plus earnings Of the company in excess of
the requirements for bond interest and
! other fixed charges to the building up of
l tfs orb inc toll