The Portland daily press., 1891-09-05
Atchison's Future.

We make the following extract from the
September Stock Market Letter Of Messrs
f. 81. Prince & Co., the Boston bankers, In
relation to the future of Atchison Railroad
stock, in which probably more New England
railroad property. They say:
1.-THE Atchison illustrates the recuperative
power Of Western roads far better than AIRY
other property because 1t covers greater
geographical extent. Atchison Is the favor
lite speculation today in Boston, New York,
London and Amsterdam, 1t is below the
frost line geographically and above the frost
line financially We hope 1t will be at least
three years before any New England holder
of Atchlson securities considers for a
moment that it is time to change his invest
ment. There is no railroad property in the
world in the position for such magnificent
Improvement as this. A hundred millions
Of money were poured out by New England
investors three to five years ago for the ex-
tension OF this property, then one ,of the
greatest railroad systems In the world.
Twenty millions more Of English money
were spent to move 1t forward to the Lakes,
and twenty-fiv millions more of stock have
since been issued to enable 1t to absorb its
partner, the st. Louis & San Francisco,
and have complete control of the Atlantic g.
Pacific road. Several millions more have
also been put into the Colorado Mid land to
strengthen the hold upon the Pacific through
traffic. This first hundred millions, the ex-
penditure of which began six years ago, and
the interest upon which forced a reorganiza.
ton In the Co.'s finances, is just beginning
to turn Its quota Of earnings into the Co.'s
treasury. No railroad in the West is send
ing more money to the East than the Atchi-
son. The flow westward stopped some time
ago and that which was expected and pre-
maturely planned for has become reality
only within the past sixty days, and this
system Is now sending East million dollars
a month.
VERY few people realize that the Atchison
was planned and extended to learn, not S.
100000 net as two years ago, but to earn S1S,-
100000 net, and this Is what, with continued
good crops and the present conservative
management, 1t should be doing within three
years. Eighteen million dollars Of net earn
ings seems large sum of money, but more
than $3.50, 100000 lspent In past years In ex-
pectation of this return is also very large
sum. Most everybody has confidence In the
future Of Atchison In general way, but
very few realize that its stock represents a
larger cash expenditure than the average
Western railroad stock; that lit is selling to-
day for less than 1t has really cost; that $40
per share is not more than $4,000 per mile for
the control OF 10000 miles of railroad. cover
ing the most non-competitive territory in the
country as we'll as a traffic varied between
lead, coal and the precious metals, and the
Southern California fruits, Texas cotton,
Kansas wheat and Illinois corn.
"The best railroad managers estimate that
1t takes five years to make new railroad con-
structlon self-supporting in the sense Of re-
turning the interest upon its cost. When
the Atchison railroad reported the opera
lions of 5000 miles of road and paid dividends