The Birmingham age-herald., 1907-04-07

opened up a channel that has diverted the flow of small investors funds away i from mining stocks Last winter, Wheh ra ilroad securities were selling around
 4 per cent basis, and even higher, small investors could see no reason why they
 should take their money out or saVinss
 hanks paying per cent and put 1t into
 railroad stocks that might collapse at any
 moment. But the mining stocks did at
 track the small investors, and they did
 take their money out of the savings banks
 to take a flyer in mining. The mining
 boom has not collapsed but 1t mas become
 rather wobbly. Many mining stocks that
 were traded In with great hurrah lasl
 winter at promoters prices are now quot
 ed at a discount of from to Sc per cent
 and even at the low prices of the present there is very little market for some of them. The promoters who were so anx- ious to sell their stocks at the high pr1ces do not show amy desire to buy them back
 at the low prices. In fact, stocks Of this kind are made to sell.
 The increase in the Atchison dividend
 is not considered good business m Wal street. Some of the directors or the roan ,a
 fully recognize this fact, but they felt
 morally obligated to some of their friends to increase the dividend at this time. Last
 October. when action was taken on tho
 dividend. 1t was a question whether to in-
 crease the rate from to per cent
 Promises had been made early In the Tall
 that the dividend would be increased In
 October, and great deal Of stock was
 bought all the way up from sS2 to S110 by
 dfrectors and their friends. But, at tho
 last moment, the directors decided to take
 A conservative stand and postpone the
 increase In the dividend to tho April
 meeting The promise was then maoo
 that the dividend would be increased at
 this time. Had this promise not been
 made 1t is unlikely that Atchison would
 have been put on a per cent oasas. Al a time whom the railways are complain ing of the increased cost of operation, and the agitation for lower rates. it does not seem to be the part of wisdom to keep on increasing railway dividends. The Atch1- son has followed the example or the Pennsylvania and New York Central The Pennsylyania dividend was increased from 6 to per cent, and the New York Cen tral dividend was increased from to per cent for no other purpose than to raise the credit of these companies In guar ters where capital is to be found. The Atchi- son. 1t is to be recalled, authorized at the beginning of last year $5o,OOO00O of con- yertible bonds and the authorized com mon stock was increased by an equal amount at the same time. The increase | in the Atchison dividend to per cent has been made to enable the company to float its convertible bonds more advam ageous- ly. The Atchison is in need of q great deal of money for necessary improve ments, and the directors evidently believe that they will not have to resore to short term notes, but VIII be able to raise money by the sale of these convertible l bonds. Putting the stock on 6 per cent | basis. in the opinion of the directors, will
 make a much better market for the | bonds.
 What part the crowd at 2s Broadway have had in this luther increase in the Atchison dividend would be interesting to know. They bought some 3oo.op shares of Atchison when t was per cent stock. This stock cost them In the neigh | borfood of s75 shsre They put Ii. II Rogers and Henry c. Prick in the Atchi. son board to represent the Standard Oi 1 holdings. The Union Pacific treasury never took over any of this Atchisor l common that was bought by the Standard on crowd. but 1t did buy s1oto0.0o0 of tho preferred stock that shows some shrink
 age in book value since 1t was purchased