New-York tribune., 1909-12-18
FINANCIAL MARKET
COAST LINE BONDS UP.
Sterling Erchange Rates Fore
shado5o Gold Erports
tO LOuIOn

Activity in yesterdays stock market
was confined to a few issues, Reading,
United States Steel. Utah Copper, the
Hartman issues and Louisville & Nash
Vile supplying the larger part Of the
total transactions of 513,051 shares
Buying of the last named. which was
based on the advance in the dividend
rate, was accompanied by a moderate
demand for Atlantic Coast Line shares
and a remarkable movement in Atlantic
Coast Line-Louisville & Nashville col
lateral per cent bonds that carried the
price of the issue from 81 to 1O1, with a
closing at 96A, net gain of points.
1t was surmised in financial quarters
that the management of the Atlantic
Coast Line had in mind the retirement
of the collateral bonds in order to pave
the way for the taking of more Louis
VILE & Nashville stock evidently about
TO be issued. A provision of the mort
gage securing the bonds states that in
case additional shares are put out by the
Louisville & Nashville, which is con-
trolled by the Atlantic Coast Line, there
must be transferred to the trustee of
the collateral trust mortgage such part
of the additional shares as shall bear the
same proportion as the stock already
pledged, but the indenture prevents the
Atlantic Coast Line from using new
stock as collateral to finance its pur-
chase. 1t was reported yesterday that
with the old collateral trust indenture
out of the way the Coast Line would
arrange a similar but larger plan under
which new Louisville & Nashville stock
would be financed.
The increase In the Louisville & Nash
Vile dividend means an annual addition
Of $500, 900 to the treasury OF the Allan
tic Coast Line Company, and as a con-
sequence of the larger dividend the lat
ter company is now in position to real
ize handsome profit on its Louisville &
Nashville holdings. for which it paid S10,-
100000 cash, $5,000O00 in it's own stock
and $35,000O00 per cent collateral
bonds. Last year the Atlantic Coast
Line earned 912 per cent on its stock,
and with the increase in the dividend on
the Louisville & Nashville shares it
should show more than y per cent in
to better dividend level. Prices in the
general list moved, as d rule, in the di-
rection of higher levels in the best part
Of the day, though in the final operations
the improvement in some issues was
lest as a consequence of realizing sales.
AS whole. the market was narrow and
uninteresting, closing firm. Sentiment
was cheerful, and the expectation of
higher quotations before the end of the
year was general in commission house
quarters. United States Steel was
bought by substantial interests.
According TO the known movement of
money in the week the local clearing
house banks have gained more than
So, 100000 in their cash holdings, the
larger part of which represents excess
receipts from the interior, Exchange at
most points on New York is in favor of
shipments of currency TO this centre,
and from current indications substantial
sums will be received from out-of town
points for weeks TO come, owing TO the
attractive rates for loans here There
is no prospect of easy money in the near
future AS foreign exchange market
conditions apparently foreshadow a
movement of gold to Europe. it is en-
ccuraging to know that the interior is
sending money To New York Sterling
rates were firm yesterday, and as high
as 4.SSl5 was paid for next Wednesday IS
delivery. Call money averaged 4k per
cent