The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-01-05
MOVEMENTS.


Gath, in Cincinnati Enquirer.
Referring to a conversation [ t%elegraphed
you a few nights ago with Il gentleman very
well posted in fiscal affairs, I sand: do you
think that William Vanderbilt has sold a
large part Of his stock interest in the New
York Central railroad?'
"Yes, | guess it is So" said my friend. "He
has been selling his stock and buying the
bonds of the road. The stock has been TAX
ing a highly speculative character in that
railroad for a few years past, while the bonds,
OF course, have no such speculative relation.
Vanderbilt has been becoming more of a
Spectator in one direction and more con-
sentative in another. One reason why he has
been selling his stock is the increase in the
bonded and floating debt of the New York
Central road. which goes on in spite Of every
piece of stinginess he can resort to-
Give ne an instance of that?'
"Well, the bonded debt of the New York
Central has been increased from $40, DOC, 600
to $4S, 900, 600 within the past year or so,
while there is an unfunded debt Of S., 900, 900,
the whole making nearly $54, 100000 of
bonded debt upon this property. Three
years ago the entire bonded debt of that rail-
road was only $38, 600, 600, making an increase
of $l6, 600, 900. Naturally, Mr.. Vanderbilt
has been buying the bonds, and letting the
stock go to the street"
rs the stock much more dealt in now than
formerly?'
yes. You sometimes see Sc, 900 shares a
day of New York Central change hands on
the Stock Exchange, and | often see %, 200
shares change. Now, five years ago there
were hardly 100 shares a week OF the same
stock thrown into the vortex. The high
price OF the stock, its occasional strong huc-
t~uations, and the convenience it is for specu-
lative purposes, have made it more and more
a favorite in Wall street"
allow much money has Mr.. Vanderbilt
put in his Pennsylvania railroad systems
which he is now building?'
II hear that he has spent SIG, 900, 900 there.
He does not issue any stock on his Pennsyl-
vania extensions; but there is a species of re-
ciprocal guarantee upon them by the New
York Central and the Lake Shore railroads,
simply compelling a reciprocal traffic. Van
derbilt advances the money and takes the
Fbonds of these roads"
what proportion of stock in the New
York Central has Mr.. Vanderbilt parted
with"
"Well, at a comparatively recent period,
he and his family owned from 800, 900 to 400,-
900 shares of Central. At present they do
not own altogether over $40, 900, 900 out of
sos, 600, 900 worth Of stock. Five years ago,
as l say, they held over one-half of the
whole. Mr.. Vanderbilt has put a large
part of the money he has taken out
of the road into government bonds,
of which he WINS $50, 200, 600 now. 1t was
recently printed that he had sold some Of his
government bonds to buy Northwestern
stock, but he has explicitly denied it TO me.
He told me that he had not sold one of these
government bonds. His course at present
seems to be changing from an investment i'll
| stock into a bonded investment"
Here my acquaintance paused q moment
and said:
"Do you know that the stockholders in the
large railroads of this country are looking
with establishment and apprehension at the
great fortunes made by construction COM
panies, which build railroads for what they
receive for the bonds? Take for instance,
some old standard investor in a road like the
Lake Shore, who has perhaps 800, 900 i'll that
road. The first thing he knows a lot
of young men coming from nowhere,
and known to nobody, have made
81, 600, 600 apiece by buildinga parallel rail-
road, selling the bonds and for the price of
them making the road, and then selling out
the stock in a single lump for $l3, 900, 600.
The stockholders are asking what is to be-
come of them relatively"
Does it not cost much less money to build
a railroad now than when these old railroads
like the Lake Shore were put DOWN.
ooh, yes. A few years ago it cost from 800
to $500 a ton for steel rails, and many of the
railroads now going down can buy them for
$40 to $50 a ton. The consequence is that
you can proftably parallel almost any rail
road in the United States, and perhaps
force its stockholders to buy the new para
site. Most of the old roads have had a good
year OF business by merely hauling
construction material for these new
roads. Another thing to be noticed is the
weakness of the amount of currency we
possess to carry all these new securities and
keep up the dividends on them in cash. The
amour of Understanding property has
grown out of the reach of the money in the
country to pay interest and dividends"
"What are the comparative prices of all
kinds of rails?"
well, the old roads paid 800 a ton, we
may say, for steel rails, and $50 a ton for iron
rails. AT present the price is about $50 a ton
for steel rails, and 1926 a ton for iron rails.
We have built 80, 900 miles OF rails in three
years, and a vast amount of the tonnage of
the old roads was in carrying this amount of
stuff"
(Which stocks are likely to be raided after
New Years."
Denver & Rio Grande has a great many
antagonists, and | expect to see a fierce war
made on St. Paul. By the way, there is a
complaint among stockholders in the st.
Paul road that every one of their directors
has become so vastly rich"
MOTHER SWANS WORN SYRUP. for feverish-
ness, restiessness, worms, constipation. Taste
less. 25c.