The Providence news. (Providence [R.I.]) 1891-1906, 1894-11-12
LOCAL STOCKS.


The local money market has not as yet
felt any improving effects from the recenl
elections. There Is, however, OF course,
much better feeling, and that goes long
| way toward better times. Whether or
not the improvement will be this
year or next is uncertain, but rates
for money must improve or banks will
make no dividends. l hear this week of
large line of good paper that was taken
by local bank at per cent. Even the
demand for cotton loans does not require
money enough to make an appreciable
hardening OF the rate.
The local market for stocks Is slightly
stronger though there have been no sales
OF moment outside OF the public quota
tions of the Stock Exchange. The splendid
resistance to the storm made by the Mar
rHgansett Electric Lighting Coupsny's
system of wires proves, as the Insider
has always maintained, that the equip
ment provided by the local company is
all that safety or efficiency
demands and that it is the
superior of any equipment in the coun-
try. Not a single wire was broken by the
sudden and severe storm of last week,
and not one OF over five thousand GUS
toners was deprived OF his regular ser
vice. The stocks bid price has advanced
TO s77, and sales have been made at that
figure.
i am informed that of the $500 sub
scribers of the Providence telephone
system sbout 30 per cent were discon-
nected by the storm. Some are not even
yet in order. 1t is particularly severe
loss TO the company just at juncture
when it is preparing to put Its under
ground system in working order and has,
therefore, made only absolutely ncces-
sary repairs upon its overheard wires for
sometime. The repairs Immediately nec-
essary will cost many thousand dollars.
Stonington Steamship stock and New
York, New Haven q Hartford stock are
both strong on recent advances.
Local financiers, bank officials and in
yestors are not little interested in the
career OF the National Waterworks Com
pany OF New York, OF which MIR. q. r.
Tainton OF Tainton & Holt is president. A
considerable portion OF the second mort
gage bonds are held here. The National
Water Works Company owns the fee OF
the water works system in Kansas City,
Kan, and all the stock of the water works
company of Kansas City, Mo-, which
latter in turn owns the fee OF the water
works in that city. The capital stock of
tse National Company is about 81, 100000.
There are first mortgage bonds on the
Kansas City, Mo-, plant OF II ,50O,0H0 and
second mortgage bonds Of equal amount.
On the Kansas City, Kansas plant there
are 5000, 900 first mortgage bonds.
Aside from the interests of those who
locally own bonds OF hold either bonds or
Ifas 10 q ~. kfstn ~
this company is OF great value as illustrat-
in forcible way the absolute untrust-
worthiness of Western investments in
general and the entire disregard which
the Western politician h,s OF the rights OF
the Eastern investor whom he wishes to
fleece OF his property.
in 1873 the National Mater Works Co.
OF New York obtained OF Kansas City, Mo-,
20 years exclusive right to the use of lis
streets for water works system, agreeing
by contract 10 furnish water at certain
rates. At the expiration OF that francise
the city was cit her TO buy the water works
or 10 renew the contract for an equal
period longer.
Before the expiration OF the franchise
early in 1893, thc city of Kansas City, Mo-,
claimed that the company had not kept a
proper pressure on the fire hydrsnts that,
therefore, the city was no longer under
contract with the company; that the city
was, further, under no obligation to pay
rentals for the use OF water, and it refused
to pay any rental subsequent to January,
1892; that further, the company having
violated its contract had no longer any
franchise rights; that IL was illegally
using the city's streets and paying moth
ing therefor; that therefore he franchise
and contract were void and the city pro-
posed to confiscate the companys
property.
The company naturally objected to this
HIGH handed method OF procedure and
asked the courts to decide the questions
at issue: IL claiming that II the city re-
fused to pay for service rendered II (the
company; had the right TO refuse TO
render that service and ought to be
allowed to shut OF the water
supply. After some months of litigation
the United States Circuit Court OF APP
peais decided that the city must pay all
back rentals at contract figure, that after
after having done 50 Il must purchase the
plant in Kansas City, Mo-, and a pipe
line lin Kansas City, Kan,
paving therefor s3,0O0,00o. The
court enieined the company from
shutting OF the water supply and ordered
ii to sell the above plant to the city by
Dec. 1, 1894, for the sum mentioned. giving
good title to the same. 1t further ordered
that the failure OF the city to furnish the
money for purchase on that date would,
without further action, renew The franchise
and contract for another twenty-year
period. At that time the city owed about
si25.0O0 for back rentals. To pay this
there was a special fund in the treasury OF
only about $4,000, and although there