Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1894-04-29
sroOK OF STREET OAR COMPANIES
Itu PURCHASE and sale Now Prominent
Feature of Wall Street.

No financial feature on Wall street
I has become moro prominent Of late
years than that connected with the
purchase and operation Of street car
roads and systems. Ten years ago bank
! ing houses had comparatively little TO
do with street car stocks. There were
a few firms that bought and sold the
shares of the old horse car lines when
| ever there happened to be market for
the same. But they made no effort to
push these stocks. In fact, they rather
regarded investments in that line as
precarious, and dealings in the stocks
as q waste Of time.
To-day you can buy or sell the shares
OF the street car lines OF all the great
cities on Wall street. There are houses
that do little else but conduct transac-
tIons in these enterprises. The leading
newspapers, both daily and financial,
publish lists of quotations OF these
roads, The bankers do not contine
themselves to the lines in New York
and Brooklyn. You can operate in the
shares Of horse and electric and cable
lines inNewark, Philadelphia, Chicago,
Boston, Baltimore, Syracuse, Albany
and Buffalo One banking house even
puts Milwaukee on It's list and deals in
the shares of the street car lines in that
Western city.
Nor is it an improbable business.
Since the Philadelphia syndicate was
formed and took over the roads in the
Quaker City and then formed the Me-
tropoltan Traction Company in New
York the demandson the part OF invest
| D. Il ~ -
terprises has materially increased. The
fact crept out that the average
street car line was very paying con-
Germ. II appeared that the lucky in
vestor wqO got in on the ground floor
when these lines were first built had
reaped fortune. They paid So or $50
a share for the stock at its inception,
and after getting substantial dividends
for years found they could sell the same
original shares for $500 TO $500 share.
In many cases purchasers bought
stock when the company that built it
was organized out of patriotic motives.
They wanted 10 sea a line IN their town
or in the part OF the city in which they
resided. They placed the certificates
IL their safe deposit vaults as sort Of
relic, TO bs scrutinized by the next gen.
GRAFTON as a samply of the worthy cit
izen and his public spirit.
Fra6uaIly the town grew or the sec
ton OF the city increased wonderfully in
population. The line began to pay.
One day the public-spirited citizen, who
sacrificed himself for the interest of his
fellowmen. received notice that a divi-
dend would be paid. He attended the
regular meeting Of the stockholders and
learned how promising the infant pro-
ect had become. There was talk OF
extending the road. The town or mu-
nicipal authorities were TO be asked 10
grant an additional franchis. The
patriotic stakeholder felt pleased. He
understood how much more gratifying
profit is than patriotism. The days ran
along and he was offered par for his
stock. He declined the offer with dig
nifty. He had bought the stock not as
an investment, but from a sense Of duty.
He did not care TO sell. He wanted to
keep his certificate as a sort of souvenir.
Before he was aware another dividend
and a larger one was declared. While
there was little market for the stock
because, as the directors explained,
there was no stock on the market. the
worthy citizen heard now and then of
sales of stock considerably above par.
II the investor we're lucky enough 20
hold on to his stock still longer he be-
gan 10 hear of the great success of the
cable and then Of trolly lines. Old horse
car line were turned into electric sys-
tens. Sometimes the stockholders
subscribed the necessary capital and
converted the slow horse road into a
rapid transit road. In other cases out
siderS came along and after buying up
the stock and getting control OF the
line, equipped it with electricity. About
this time the story OF the syndicate APP
peared in the newspapers. A collec-
tion Of capitalists were in search Of
fairly prosperous roads in growing and
thriving cities. Then came the promoter
in quest of options. He asked the
worthy citizen 10 give him an option on
his stock for a few months at a figure
that seemed fabulous. Frequently the
patriot overlooked his original inten-
lions. He concluded to dispose of his
souvenirs. After all, he argued, 1t
wuold be better for his children to
have cash than mementoeS. Very
likely he would live so long anyhow
that something would have TO be done
with his shares. He had done his duty
in the premises, and he felt he recog-
nized his duty at the conclusion. So he
granted the option. If the promoter
was smart he unloaded the controlling
interest that he had under option to a
syndicate, and one day the unselish
pataiot disposed OF the stock for several
hundred dollars Snaae that originally !
cost him twenty-five or fifty.
The moment the new owners stepped |
in they Increased the capital stock OF !
the former corporation and began !
using new bonds. In many cases the |
stock was listed on the local exchange. |
Dealings in the shares became frequent |
andactive. Then, of course, the banker |
appeared. So long as the road was a !
horse concern and the stock was
closely held, he took no interest in !
il. Now that it was an electric line aud |
the shares. were in demand, he came !
along to boom il and create specula-
ton in it. lie formed new channel |
for the making Of commissions and it
didn't take him long to avail himself OF |
the opportunity.
This is how Wall street got into the
street car business. Big banking !
houses soon branched out. They not !
only bought and sold stock, but they
provided capital for purchasers of prof
liable ROADS They subscribed for
issues OF street car bonds and foated !
them at neat advance |
among their customers. They ad-
vertised that they made a speciality
of such investments. They gave
heed TO the respectable and reputable |
.,