Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1891-09-11

We msfz he following sxffacs isom ne
s<pss mhes Stock Market Letter OF Messfs-
=. n Prince & Co., ths Boston bsnxefs,
n relation % the future Of Atchuo1 Hall
10 ,d sock, in which probably more Nev
Ecsi.od investors are interested tnsn In Aoy
o her fsiirosd prop They say
nThe xtchison illustrates the recupefs
Nv. nove, At western roads far better thss
sny other property because Is covers !.
greater geographical extent Aicnlsoo y
Ibe fsvosite speculation todsy 10 Dos,"i'
Nss York, London and Amstefdsm His
below The frost line geosrspna .hy ana
above the frost line FINANCIALLY. We nope
hat IL viii be o. lssss three years peiofe
xDy New England holder Of Anhtson
.scuriries consi1sfs for . moment that II u
time 10 change his Investment. There 10
no railroad property in The world in the
nosifiou for such magnificent improvement
=. this. A hundred millions Of money
we're poured out by Nsv EaglAnd investArs
,brss % sye years ago for the extension CT
.his prt psrsy then one Of the gfestest rail
road ,ystems IN the world. rsenty MIL
lion. more Of e. iish money were spent 10
move /. forward to the lakes, SIC twenV-
ava millions more Of stock have
since been issued to enable l. 10
absorb its partner, the 81. Louis & ban
Francisco, and have complete control OF
tie Atlantic & Pacific road Several mil
lion. more hav. also been put into the Col
orsdo Midland to strengthen the bold up.
on the Pacific through nafiic rus nes'
hundred II illions. the expenditure OF WHICH
b, gao six years SGD. and the interer upon
v hjch forced a reorganization ia the 20 )
q lance. ., Is Just baaiunirg to snrn nA quo.s
OF earrings into the Co.'S treasury. No
railroad in the West 10 sending more money
TO the East than the Atchison. The ~
westward stopped some time ago ana tns'
bicb wss expected and premstur1iy
for has become . reality only with
IN the past six,y days, and this system 10
now ,endiag Esst million doilass moh'h'
..Very few people reslizs thai the Atrh
~as plsnne and extended 10 essr, not 60
400 900 net as tw yeaIs ago, but 10 rAfh
= ia 600 OCO net, aud thi, il whist. rito con-
,isued good CROPS and the present c'n'ef
y.,ive management. il should te doing
W thin three years. Eighteen million hoi
lars Of net earnin 70 seems 4 large sum OF
moosv. but more han S250,000 900 spent
10 pact }eMs ii expectation OF ms return
IS also . very large sum. Most eveiS hpay
IA. COZ fdeuce in the future OF Atch-
son In . general way, opf very
few reabze that ns etocs
represents q larger cash txoepditufe IMAM
The AVERAGE Western railroad stock; that 1t
/. selling today for less than it has really
cost; that $40 per share 10 not more than
$4,000 per mile for the control OF l0,ooo
miles Of railroad, covering the most non.
territory In the country Is Wen
a. 4 trsffc varied between lead, coal and
he precious metals, and the Southern Can
forn,s fruits. Texas cotton, Kansas wheat
and Illinois corn.
The beet railroad managers estimate
that il takes Eve years to make new rAilr oAd
c instruction self supporting 10 the sense OF
returning the interest upon its cost. When
The A,chison railroad reported the opera
t,oss Of 5000 miles Of road and paid divi-
3. nds upon $50 900, 900 Of cspitai 't2ck !.
was fairly profitable, but when 1t applied
he earnings Of its increased miie'ge TO hs
Increased capitalization it was not only
but in.olvebt. 1t had
doubled itself too rapidly. 1t bad ex-
te ndei its milesse vastly ia Kansas,
c ,lorsds, California aud Texas while NOV
lng it's osse forward from Topeka and Kan
.ss City to Chicsgo This construction
period was closed up more than two yeafs
ago, the balsnce sheet sruck and reorgsn-
zsaon vas affected By consolidating sd
,olid,fyirg the whole system and making
,ne.third Of the Sl2 900 600 Of ifa fred
contingent and represented oy the
issue Of the per cent income bonds.
Now within two years from the planning
# hat re orgauiz ,tion the company Is clearly
zen TO be earpiog at the rate Of the full
original fixed charges, which means es@n-
.pg. of , per cent uIo1 the int ONE bonds,
aud this is only ore and one-hslf null o Is
more than was earned duriog the fiscal
YEAR closed two months sg, The Atchi-
,nn tx er sicps were built to earn more than
> per cent upon their cost They were
quill, to add to the divide nds upon Atchison
stock, and il is easily calculated that this
,.sts magnificent crops will show re-
sol not Only ,qusling the interest upon
he cost Of all the new construction, or
si2 600 GOO, but ena or tao miliion' In
excess, which means I or per cent upon
the present 800 COO 100 OF Atchison stock
"One hundred million d,l!srs Of stock
may look large, hut representing 10 O00
niles Of road and $40 coo, 600 Of gto's earn
,nss. aud but IS ( 90, 600 u earn for Fixed
Oh upe, aud but sl2, 900, 900 includiog con e
.isen, charges it does not look Excessive
II there is any thing ID Western railroad
ng the next three yesrs Atchisor.s earnir gs
slll gain 10 per cent d yesr gross, std haf
the gain will be- net, ard without msterislly
increased construction expenditure, and
his means sIs 100000 of net earnings or
6 per cent esrned upon Atcbisou stock
Certainly Atohison's prospects were
never more brilliant for its 1900 stock
holders Of today. Not even when d.zen
Years $50 800 names represented the entire
owoership Of the SIC, coo, 900 capital stock
covering 1000 miles Of rsilroad, and the
sleek rose from sl2 = share TO above $3.50
per share. OF course Atchispn will not
sell At par this year, nor Is II likely to res oh
100 next year, but at $50 shHe, held for
3 to 5 years, il will yield a mach larger
interest rate than the Law SLOWS.
"Atchison iucumes havs largely risen
upon the .horts, but the stock has ii,eG
steadily and solidly pom investment bay
ipg, aud to the people Who have 1t at bighei
prices we can only say keep il until The
money it represents has dawn ite earning
from this crop and one or tso more and yot
will not thea cor slider that you hold very
speculative investment