Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-06
BULLS AND BEARS

Special Dispatch to The Star.
NEW YORK, July 6.-Attention has been
called here occasionally to the remarkable
features Of the new Albany and Susque-
hanna $1o.OOOOO0 forty-year 3h per cent
bonds, issued to refund $4,000, 900 of and
per cent due next year. and having the
privilege of conversion into Delaware and
Hudson stock at 900 at any time up to April
/, 1915.
An interesting circular on these bonds
has been issued by Joseph Walker & Sons.
who say: I'm the fiscal year ended June 80.
1904. the Albany and Susquehanna Railroad
Company reported net earnings applicable to
interest of 81, S21 900, against which the
entire amount Of bond interest and all other
charges was only $709.O0O, or one-quarter
or the available net income. the balance
available for dividends on the Albany and
Susquehanna stock being equivalent to over
" per cent on that issue. OF this per
cent was paid to the Albany and SusQue-
hanna stockholders under the Delaware az
Hudson Company's guarantee, and the bal
ance OF 81 per cent, or $1,SUO.OtW, accrued
to the Delaware ana HUDSON company under
the terms of the lease. After the refunding
In 1905, assuming no increase in net earn
ings, the fixed charges will consume only
one-seventh Of the available income. while
the amount earned on the stock will be a
trifie over 70 per cent on that issue.
r. X
The new issue Of the Albany and Sus-
Quehanna Railroad Company will be at once
legal investment for savings b0nks In
Connecticut, Massachusetts. New Hamp-
shire, New Jersey and New York. At the
same time the conversion privilege will give
the holders an opportunity to participate
in the future property of the Delaware and
Hudson Company through the enhancement
in value OF its stock Although this stock
pays only per cent at the present time.
its earnings available for dividends are
largely In excess Of that figure.
I'VE consider that the property has many
points OF similarity with the Delaware.
Lackawanna and Western railroad, another
anthracite coal road which, like the Della
ware and Hudson, has adhered steadfastly
to the policy Of charging large amounts
against income for additions to capital ac-
count. The dividend records of the two are
very similar. In our opinion 1t is only a
question of time when the dividend rate of
the Delaware and Hudson Company will be
increased.
THE earnings Of the company Justify such
action. and In our judgment the bonds of
the Albany and SusQuehanna railroad with
their privilege of conversion into Delaware
and Hudson stack at 200. present a most at
tractive investment The bonds will not be
issued until April 1. 1905. The rights to
subscribe are selling on the New York
Stoch eACHdHSe at ABOUT u per TiSul.
X
If the ease and rapidty with which Ten
nessee Coal and Iron stock has advanced
In the last fortnight. following the remark
able movement in the stock last spring,
serves no other purpose than to attract
notice anew to the dominating position OF
the Tennessee company in the southern iron
industry. which Is itself destined, according
TO many competent judges, to hold In the
near future the mastery of the worlds iron
trade. 1t will have accomplished valuable
mission.
1t seems to be a fact that the controlling
interests in the southern iron and steel
companies hardly dare to sell a share of
stock now for fear of imperiling their con-
troll, and the consequence Is SO small a
hoating supply of the stock of these COM
pahles that not only does very moderate
amount or buying cause sharp advance
ment, but also such situation as that
which was presented last spring when Ten
nessee coal shorts were squeezed hard is
easy to bring about. Yet Wall street hard
~ Understands the causes of this.
AS matter of fact there would seem 70
be little Of more vital bearing on securities
than the iron famine that threatens in the
next twenty years a prospect beside which
the weekly fluctuations in the iron and steel
trades are of little significance
X
Harvey Fisk & Sons are offa-,a . =,
Sestors at 10 and accrued interest 81. 900 900
hrst mortgage per cent fifty-vear gold
ponds' OF the New Orleans Terminal Com
pany.a Each bond bears the Endorsement ~
the Southern Railway Company and the St
Louis and San Francisco Railway Comnanv
Jointly ana severally guaranteeing tha
puhctuai payment of the principal and in
terest. The Standard Trust Company Of
q ha trtrc
authorized by the company is S15 ono Oo0
ana the amount issued thus far is 81. 900, 900
~ *
A stock exchange house whose utterances
nave seemed often to be inspired from an
important quarter says: "One of the men
who Is competent to Judge the situation
told US today that everything looked prom
ising. and that while money rates would
work higher they would not affect the
stock market very much. 1t was rumored
today that Union Pacific would declare the
regular dividend and 1 per cent extra. We
are not able to confirm this rumor, but
we know positively that during the past
year Union Pacific earned IA per cent on
the common stock.
Therefore an extra dividend OF any nro-
portion would not surprise us in the least
One OF the dangers to the present market
is the activity of certain interests that are
always plunging in and out of the market
regard these people very kindly but 1t is
impossible. of course, to check them or
minimize their manipulative tactics"
X
The production and importation of re-
fined copper during the first six months of
1905 is estimated at 461. 900. 600 pounds The
exports from the United States are given
officially as slightly over 2S6, OO0. 900 pounds
and domestic consumption for the same Pc
riod at 225 O00, 900 pounds. a total consump-
ton of 511 ,0O00 900 pounds. This would in
dictate reduction of 80. O00. 900 pounds since
January in the surplus stocks and invisible
supplies.
X X X
1t Is appreciation Of the essentially I'M
portant theory, however, which leads the
men who now control the iron situation in
the south to cling SO tight to that control.
which has led to so many efforts to bring
about a consolidation of the southern iron
Industries, and which has at the same time
contributed so far to the failure of these
efforts
rough estimate made today was that out
of 1,6O0, 100000 tons of known and avail
able ore supply in this country 600 900 900
tons were in the Alabama field, of which