The sun., 1909-11-02

met tho most sanguine expectation In re-
gard to the value Of the rights. II had been
well understood that the $50. .OOo. 900 OF notes
and bonds maturing next year would be
retired by the proceeds OF a stock issue
out there was question whether the stock
would be offered to holders at or above par
IL was at one time believed that the stock
would be sold at i20. which was the price
received for the $50. 900. 900 issue Of 1901 and
the 500 .0o0 900 issue OF 1908. Bat the stock
issues in the years since 1903 have been at
par. 50 that the terms announced yesterday
are In accord with the company'e policy OF
recent years. The rights were traded In
on the curb at prices ran ginG from 7 to o.
The closing price was stI,
The amount OF money which will be raised
by the new stock issue was computed at
sTs.SOY 900. but the computation. which was
based on the announcement that Its amount
would De 2S per cent. of that outstanding.
left the convertible bonds out OF the reckon
ing. IL has not yet been profitable to ex-
change the SOS. 500 900 bonds which are
convertible at i5O. but of the $50 000, 600 Of
bonds convertible at 40 there we're out
standing SIS. 600 900 In July. and the conver-
sion OF these into stock in time for stock
subscriptions would raise the amount well
above ss0. 900. 900. II all the convertibles
should be transferred in tima the company
this Is OF course out OF the question, and il
is not at all probable that the amount re-
ceived from the stock issue will exceed
sss 900 900. This is q matter that was con-
sidered OF market Importance In connection
with President McCrea's statement that tb Q
construction work under way would be COM
pieted out OF earnings and with money on
hand.
The amount OF money obtainab BILE on the
stock Issue and the decision to complete
construction work out of earnings were
considered pertinent as bearing on the
prospect OF an increase In the dividend
from to per cent 1t Is obvious. it was
argued. that not much of the proceeds OF
the stock issue can be used for improvements
and II Is obvious chat completion OF the i'm
provements will require a great deal Of
money. and IL was doubted chat the COM
pany would care to increase its dividend
by 1 per cent. which would mean an extra
disbursement OF - 600 .OO0 until the end OF
the vastly expensive work OF new con-
struction In in sight. The value OF the
rights on the new stock was offered az 4
reason why stockholders could not take
exception to a failure to increase the divi-
deDd. Spectators who took this view
Of the Pennsylvania situation consider ed
that with the ascertainment OF the value
OF the rights all the good news was out
and we're disposed to sell. The selling was
opposed by those buying on the value of the
rights. which was greater than expected
The speculation was very keen and the
market for the stock unusually active.
It ended indecisively. the stock closing
exactly even with Saturdays closing figure.
In the market as a whole the day was
the lightest In more than a month. The
inactivity was expected, for it was a holi-
day in London and to-day's holiday in this
country tended to discourage fresh COM
mitments. Houses with foreign connections
will be the only ones opened for business
downtown to-day. Many OF the uptown
branches will be open tonight for election
returns. and some few will be open all day.
New York Central and Chica go and North
western stock issues and a St. Paul bond
issue are the next important developments
expected In. railroad nnanacing. The Mis-
souri, Pacific financing was deferred until
after the Pennsylvania. though the plan
for il was begun last spring and may not
be brought out until after all the others.
When Pittsburg Coal became suddenly
active yesterday fanciers Of the stock met
an objection that has hindered previous
attempts to move 1t. The cumulative
dividends on the s32 900 900 preferred stock.
which have not been paid since Aprii. 1905.
and now amount to more than $4,000. .OOO
would, It was said. be taken care Of by a
financial plan which contemplates retire
ment OF the preferred. debenture bond
or an income bond. according 30 this report
would be offered to holders of the preferred
and all the back dividends capitalized with
1t. II was objected that Il il as difficult
to pay interest on a bond as dividends on
a stock, but supporters OF the stock in
sisted that details OF the plan would show
its advantages.
The Inter-Met stocks scored the best
gains OF the year In the course Of the May
orally Campaign and at about the time
the advance halted the local gas companies
became conspicuous. Last Thursday Con-
soIidated Gas sold as low as 1877 and Brooklyn
Union at 1873. Closing prices yesterdayd
were I45L for Consolidated and it3 for
Brooklyn Union.
The death Of John s. Kennedy naturally
raisec> the supposition that much OF the
heaviness In the Hill stocks was due to
in the course Of his illness The
last statistics of stock holdn gs complied
by the Interstate Commerce Commission
showed Mr.. Kennedy the biggest stock
holder in Northern Pacific and Great North
ern. with SIC. .OOO, 900 par value OF the former
and ~ 600 900 par value Of the latter. The
Late D. Willis James was also one OF the
Leading holders OF the Hill stocks and 1t was
that after his death selling OF the
Hill stocks, which has since turned out to
have been Union Pacific selling. was be-
Iieved to be liquidation for the account OF
the James estate. Men who recalled the
stanch support given TO Mr.. Hill by MIR.
kennedy in the Northern Pacific corner
and the close relations existing previously
and since between the two men believed
the Wall Street supposition regarding the
Kennedy holdings to be a mistake similar
q that made in the case OF the James estate.
The Bank Of Germany made no change
In its discount rate and the Ban k OF En- gland
secured all OF the s+.00o. 600 laid down In the
[ondon open market without competitive
bidding from the Continent. Bar gold |
IN which there has been a premium in Lon !
ion for weeks. sold down I'd. to its mini |
mum price OF IT'S. Sd. News OF this continu-
.tIon of last weeks improvement Ia the
Tnrei4u money situation was received at
,r before the opening OF the market and
Vas the princi pal argument used for higher |
prices in the early trading.
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