New-York tribune., 1906-06-21
STOCK MARKET OPERATIONS.

While there were periods of irregularity in
yesterdays stock market, the general movement
Of prices was in the direction of higher quota
tions, with last figures at or the best. Act
uai dividend declarations, including an advance
in the rate on Baltimore & Ohio stock and the
placing of American Locomotive common a
dividend basis, with reports that other COM
panies would in the near future add their
payments to stockholders. naturally served to
create considerable speculative enthusiasm,
though the character of trading remained almost
entirely professional The so-called Pennsyl-
vania group supplied one of the features Of the
day, while other interesting movements were
furnished by Canadian Pacific, Union Pacific,
ST. Paul, Reading, Southern Pacific. New York
Central and Michigan Central. the last named
issue on small dealings advancing 20 points
Following the declaration of the Baltimore
Ohio dividend, general activity developed, and in
the greater number of stocks the highest prices
were recorded IN the last hour of trading. The
granger shares were helped by further favorable
reports from the crop section of the territory
while the general railroad list was influenced by
the gratifying reports of earnings. especially
Missouri Pacific. which in good demand
from the shorts. following the publication of the
ing marked gains both in gross and net receipts
The only weak features in the active list were
Interborough- Metropolitan and Metropolitan old
stock, which again moved under the influence Of
speculative pressure. A slight fractional decline
in American Locomotive due to realizing
sales incident 10 the declaration of the dividend
on this stock Foreign houses not active
in this market buying a few thousand shares on
balance.
The Baltimore & Ohio directors action in in
creasing the dividend on the common stock to a q
per cent basis is fully warranted by the present
physical and financial condition of the property
Current earnings of the road have been at rate
in the last eleven months which indicates a sur
plus available for dividends the end of the
fiscal year Of upward of 10 per cent, this in
Guiding the stock recently authorized. TAX
ing the full report Of the companys earnings
for the eleven months, and for June estimated
gross returns for the year ended June 80 will
amount to more than 200, an increase of
nearly S10.000.0O0 compared with the preced-
ing year, while earnings will show an in
crease of more than 81 100000. Adding other in
come and deducting charges and preferred divi-
dends, there will be a balance Of a triie over
S15.000OO0 compared with $11 273, ,995 for the
fiscal year of 1905 In the current year operat-
ing expenses have shown an increase of $50O0-
Oo0 and the annual report doubtless will show
that the company's freight traffic has increased
TO new record, and that each mile of the road
is doing more service at the present time than
ever before in the history of the property. Since
the reorganization Of this company its progress
has been most satisfactory to the holders of its
securities. earnings having increased through
the general improvement which has taken place
in the country's business and through the policy
of the management in spending enormous sums
In improving physical conditions in a manner
which has resulted in the ability Of the COM
pany to carry more traffic at a cheaper cost
The increased Baltimore & Ohio dividend dis
bursements, Of course. will bring more money
10 the treasury of the Pennsylvania company,
inasmuch as the latter road owns a large amount
or baltimore Ohio stock. Pennsylvania this
year will enjoy notable increase in its income
from investments through the increased divi-
dends on properties controlled or owned in part
including Pittsburg, Cincinnati, Chicago & St
Louis Baltimore & Ohio and Norfolk &. Western
IL being understood that the dividend on the last
named Will be placed on higher basis in the
faIL Efforts are being made by certain promi-
| nent interests In Chesapeake & Ohio the stock
| OF which is largely held by Pennsylvania and
| New York Central interests to bring about an
increase in the dividend the stock of the COM
pany. and in the event of favorable action being
taken pennsylvania will receive a further addi-
ton TO its income; also the New York Central
chesapeake & Ohio's earnings justify larger
diVldend payment, but there appears to be some
| uh"lIilhgness on the part of the directors to
| change the rate at present from the per cent
| basis Earnings of railroads throughout the
country are SO heavy and physical conditions of