Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-06-14
BULLS AND BEARS


NEW YORK. June 1.-THE Ann Arbor
and the Detroit Toledo and Ironton Rail-
way Company will be formally consolidated
within thirty days. negotiations for the sale
of the Ann Arbor to the Detroit. Toledo
and Ironton Railway Company having been
completed The price of the sale was
$o.50o.0C0 in 31a per cent five-year collateral
trust notes secured by the shares of the
newly acquired road and by $5,000.G0o
general mortgage Az per cent bonds of the
Detroit. Toledo and Ironton road, the sue
cessor of the Detroit Southern. Ralph Kley-
oolte & Co. underworld the notes. The De-
troit road took over 3o.010 shares of Ann
Arbor preferred out of a total of 10000
shares, and p 800 shares of common stock
out of a total of $4,000 shares
Directors of the New York, Ontario and
western Railway Company will meet soon.
probably next week. to take action upon
the question of declaring a dividend. All
kinds of guesses have been made as to
what the directors will probably do. In
well-informed circles there is a prevail
Ing opinion that the dividend declara ton
VIII be upon a per cent basis of the mar
ket value of the stock or about 2 per cent
annually. based upon present quotations. al
though some interests expect as high as 3
per cent. The earnings of the company
Tor the current year have shown heavy
gains over those of previous years.
In an interesting letter upon the stock
market situation. Bartlett Frazier and Car
rlngton say:
There are few men in the financial dis
trict whose opinions finance are we'll
worm having, and whose position in the
IiianClal world is such that their views
must command attention. One of these mt n.
whose name Is to conjure with in financial
AFFAIRS, while discussing the situation with
US tooay. summarized his remarks in this
way: i am very hopeful of the future, but
l GO not believe that the time is yet ripe
10 take definite position The various
Factors in the situation which he touched
upon were the good crops in prospect. good
business. excellent railroad earnings the
prospect OF peace, the nominal settlement
or the Equitable scandal easy money and
general prosperity. Not all of these how
ever, are unqualifiedly bullish
ffor instance. the peace proposition will
undoubtedly involve an indemnify and Rus
STA may tie up the money markets of Eu-
rope In paying that indemnity. Conse-
quently We cannot look to Europe for aid.
should a strlngency arise here. Bank re-
serves here are low, while out-of-town de-
posts are large and big business and large
crops to move would mean a serious drain
on the local banks. The federal govern
ment needs money continuously, and, of
course, will be unable to help in the event
of money becoming firmer.
These are the bad features of the situa-
ton. but they are more than counterbal-
anced by the general prosperity which pre-
walls. AS a matter of fact, while money
rates may become frmer in the fall. there
is no danger of a severe strngency. Finan-
ciai sentiment Is constructively buIiish and
our deduction from our inquiries is that the
long side Of the account will prove the more
profitable in the stock market"
According to the Coal Trade Journal to-
day there are some signs of Improvement
in the bituminous coal situation. 1t says:
There is. on the whole a much more
confident tone prevailing. as it is realized
that there are only a few weeks more OF
dizziness to be gone through with before
prices and tonnage both show the improve
ment, fo- which the trade has looked for
ward with anxious eyes for many weeks.
We surmise that the strategic condition of
the market Is such as to lead to a rapid
change. and that when the improved con-
ditionS do eventuate the transition will be
as definite and pronounced as the most
enthusiastic could expect.
Aside from the customary closing down
for repairs and improvements which affects
the steam-using interests in many sections
during the early part of the summer sea-
son. all reports indicate very heavy con-
sumption of coal and may expect a
continuance of these conditions, perhaps
even on an enlarged basis, right through
the fall. consequently there will be heavy
buying after little while. The anthracite
trade is running along splendidy'