The Washington herald., 1912-01-28
a. 6. PLANT s. CO.,
BROKERS, 1919 u Sr.
BUSINESS TARIFF BOARD-RAILR0AD
MATTERS STOCKS AND BONDS.

, shows a surplus OF around So00o.ooo. It
is reported that number Of the directors
were in favor of maintaining the 7a rate.
The stock from now on Will have In its
favor the possibility OF return to the 7I
dividend.
The Puget Sound Extension, OF which
the St Paul owns all Of the 800, 900 900
stock and sra 900 out. Of a total of
sl54. 10000 ~ bonds. paid last year into
the treasury Of the parent company S.
000. .OoO-a 5s dividend earned on its stock.
This gear in five months It has not earned
any dividend. But 1t is impossible to be-
lieve that these conditions will continue,
and when the Puget Sound becomes q
steady dividend Garner, st. Paul win
swing back TO its old position of one of
the best investment stocks in the,couRtry
Viewed in the light OF past perform
ances, St Paul is the cheapest stock on
the list
Stocks and Bonds.
The high cost Of living began three
years ago to crowd investors depending
more or less upon their savings, to de-
sert the old time gilt-edged bonds, which
paid only per cent and TO make in
istent search for something which would
yield more income and still be compare
lively safe. This has led to increasing
activity in the bonds OF the second class
in railroads and in industrial bonds, and
even TO semi-speculative issues. that
would yield around 5 per cent or more.
Public utilities also have come in for
very active participation in this quest.
For a time investing institutions clunR
to the old issues, but even they have
now largely abandoned them, and this
week n comparatively rapid business
has been done in second class invest
ment bonds with higher yield, and in the
more speculative issues.
The activity, however, was confined
mostly. as last week, to the Tobacco and
Traction issues. The securities Of the
Third Avenue, once a prosperous propo-
sition. are being widely dealt In by bond
dealers, both in anticipation Of their at
tractiveness being recognized by inves-
tors and for enhancement in value: and
by astute investors who expect to see the
properties restored to their old time
prosperity.
The activity in the Tobacco securities
Is evidence OF realization that these prop
critics. having passed through the shad-
! ows OF the Sherman Law, are Just so
much ahead of all other .industrials and
the securities are being bought in an
ticipation Of continued prosperity. un-
troubled by Supreme Courts. The IS and
Is OF the LoriIlard and the Liggett &
Myers Companies yield at the present
prices about 81 per cent. The security
iE undoubted and the bonds are good TO
keep.
There has during the week been an
unusually strong demand for short term
securities. The notes OF the Missouri,
Kansas & Texas Railway Company, Of
the Minneapolis & st. Louis. and OF the
International Harvester, have all shown
advancing strength. The offering by the
Baltimore & Ohio Of 100000 Of Serial
10-year Equipment notes at a price ap-
proximately "a per cent yield, was quick
ly oversubscribed and these notes arc
now selling at a premium over the issue
price. The Western Pacific issues also
appreciated in price on rumors Of coali-
ton, which, however, up to the present.
are unconfirmed. The common stock ad-
vanced from TO H.
The acute search for safe bonds yield
ing higher income than { per cent. man.
ifested itself in the discovery. activity
and advance in price OF such issues as
the Ann Arbor IS, which are a first lien
on the properties. a closed mortgage, and
the road is showing the benefits OF COM
petent management. These bonds sold as
low as ISIS last year and are now being
picked up at So.
The bond situation, which was disap-
pointing at the first of the year. is now
beginning TO give aSbetter account OF
/
ing marked improvement over the cor
responding period for last year, both in
activity and strength.
Money is continually Increasing in sup
ply here. and abroad the situation Is
tightening somewhat Foreign exchange
has advanced TO 4S71z, which is within
one-half point OF the price at which
gold may be exported without loss. 1t is
not yet certain that gold exports will
be started, but the continued increase
in the supply of money and the brisk
ness of trade abroad, keeping up the
demand there, may bring about ship
ments of gold, and as FAR as this coun-
try is concerned, this would be Of no
adverse importance
The stock market is irregular, without
much movement either way, and specu-
Iation is quiet.
A. G. PLANT & CO.,
1916 C street, Washington. D. C.