The New York herald., 1879-08-22
FINANCIAL and COMMERCIAL.
Stocks Buoyant and Fairly
Active.
MONEY 8 TO Z PER CENT
The New Northwest Lease and
Its Terms
THURSDAY. August 2l--6 +. !
NALL STREET.

THURSDAY, August 2l--G +. Nj
Aside from the marked advance in the limo OF
stocks which recently led the market up to the
point from which it broke. the most noticeable
feature OF the stock speculation to-day was the
strength of the Chicago. Burlington and Cedar
Rapids securities. The explanation Of the rise in
these shares also clears up tho mysterious stato-
ments OF the bears, who have been for
some days asserting that Northwest would
sell down to 70 this week. 1t is found
III the pretty well authenticated report that
the road named is to be leased by the Chicago and
Northwestern which will guarantee five per cent on
the bonds and three per cent on the stock OF the
leased road The latter runs from Burlington. Iowa
to Albert Lea. Mimi. about two hundred and fifty
miles. and has besides four divisions. making the
length operated about four hundred and forty miles
For the ten months ending April 30 last the net
earnings $780, 900, being less than sufficient to
pay the interest on its bonds. Its capital stock is
$l0000,000. Its funded debt consists of $6.500O0
6rst mortgage five per cent currency bonds. due
January l. 1906, OF which S504 200 in possession
OF the company and also $150000 of the Minneapolis
and st. Louis Railway Company's bonds. guaranteed.
That the Burlington road would be the gamer by
such lease was shown by the advance Of the stock
which was quoted at 81 yesterday and sold at 60 to-
day upon this report. Northwestern opened at 49, !.
with large transactions. broker selling 5000
shares It steadily rallied from that price to "a and
vibrated between that and half point lower until
the closing dealings when some of those who had
sold early in the day bought against their Shorts.
sending the stock for time to TAX. from which
figure 1t declined u in the last sales.
1t is worthy Of passing notice that some Of the
heavier dealers who have been bulls in this stock
for the past three months quietly selling.
and the impression prevails that the leasing Of the
Burlington road will make it more difficult than
for the Northwestern to pay any dividends
upon its common stock. The market was governed
almost entirely by the large transactions and
fluctuations in Northwestern. TO these was ascrbed
the rally in Lake Shore from S4 to 49, at fraction
below which figure it closed. The st. Paul stock
under the influence. 1t appears that the
lines Of the Western Union AMI other leased roads
make the present mi.eago of the West
Union about six hundred miles greater
than it was year ago. The coal
stocks showed activity and advanced
about per cent for the day. Wabash. Michi-
gan Central and Western Union moving in parallel
lines each declined a. St. Louis and San Francisco
very strong. the first preferred rising 3i4 per
cent to 42a and closing advance of az for the
day. Outside Of these stocks named the list ut
terly neglected. and feeling of uncertainty to
the stability of the market prevailed.
The extreme fluctuations for the day in leading
shares are shown in the following table of prices -