New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-01-29

Bid. Asked.
WHAT WAS DONE IN STOCKS.


The feature of the day in stock circles was the
announcement by the directors of the Louisville
and Nashville Railroad that the company would
issue S13 900 900 of stock for the purpose of pay
ing OIL maturing per cent trust bonds and other
obligations and that the new stock would be
offered to its shareholders at So per cent. A
syndicate has been formed to guarantee the taking
of such stock as the shareholders fail TO sub
scribe to. Probably an interest in that syndi-
cate is of little value This new policy of the
company in capitalzing maturing debt into shares
Offered to shareholders subscriptions-is fol-
lowing after the example of Delaware and Hud-
son, and is policy that should commend itself.
TO every honest management. With all the debts
of railway systems capitalized into stock,
so that there would be no first charges, there
are few if any railroads in this country that
would not be dividend-payers.
With no interest TO be paid, whatever was
earned, be it little great, would be devisiblc
between the shareholders, and the days of fore
closures and the freezing-out process would como
to end OF course. it can be done only
debts mature, but the management that accepts
and puts IN force tins practice at every 0ppor
tunity will receive the confidence of the public
IL makes no difference how much stock il requires
the rate at which 1T is issued long as the pres
ent shareholders have the opportunity subscribe
for the stock proportiOnate to their present
holdings They contribute to pay debt bear
ing interest, and the interest saved is so much
added to the amount TO be divided among the
stockholders In this case Of Louisville and
Nashville reduction of 100000 per annum
is made in the fixed Charges sum equal 10
/ ga per cent per annum the capital stock
after the new 81 3 900 900 is issued. Because OF
this announcement that stock to-day rose from
81 3-6 TO 80 l-2a90 "A
This episode and the advance in the price of
the stock, which is logical sequence Of the
action illustrates the change in sentiment A
month ago an issue Of 81 900, 900 of stock %
pay q debt would generally have been received
as great bear" point and the market bulletins
furnished 10 Wall Street would have bristled with
figures and points 10 show how hard
brilliant and conservative action would have been
construed as an indication of weakness. IL was
SO with the announcement OF an additional issue
of Oregon Short Line and Utah Northern stock
both il and Union Pacific stocks declined because
of IT, and yet the fact and condition OF the issue
furnished substantial reasons for a sharp advance
in at least the price Of Oregon short Line. Both
stocks have since recovered, and to-day were
strong while dull. The short interest IN Union
Pacific still hopes that something will turn up, and
they are using daily paper and the telegraph
wires To help the turning up. AS yet their
efforts have resulted in only turning up the price
In the general market there was no boom
in prices; they were simply hard Mt small ad-
yances with some final reactions on reallZatlOns
of board-room traders. There has been more or
less liquidation of the general short" account,
but it has not been important, and not infre-
ouently the stocks purchased for that account
have been thrown back at the market IN periods
of dulness. Stocks generally are in borrowing
demand at about the rate for money. In some
instances, like Philadelphia and Reading and
Delaware, Lackawanna and Western, The rates on
stock loans are AT la2 Der cent Tue market