Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-04-29

ITS Purchase and sale Row Prominent
Feature Of Nnii street

come more prominent Of late years than that
connected with the purchase and operation
Of street ear roads and systems. Ten years
ago banking houses had coml,arat.vely little
TO do with street car stocks. There we're
TOW Arms uRs bought aud sold tho shares Of
the old horse car lines whenever there hap
pened to be q market for the same. But they
made no effort to push these stockp. In
Tact they rather regarded Investments In that
line as precarlous, aud dealings In tho stocka
as 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 transactions in these enter
prises. The leading newspapers, both daily
and financial, publish lists OF quotations Of
ttpse roads. Tho hankors do not connne
themselves TO tho limos In New York and
Brooklyn. You can operate In the shares II
horse and electric and cable tines In Ncwark,
Philadelphia. Chicago Boston, Baltimore
SYRACUSE Albany and Bufalo. One banking
house even puts Milwaukee on ita list and
deals IN the shares OF the street car lines In
TINT Western city.
Nor is 1t an Improbable buslnoss Since
tho Philadelphia syndicate was formed and
took over the roads Ia tho Quaker City and
then formed the Metropolitan Traction Com
pany IN New York the demand on tho part OF
investors Tor the honda and stocks OF such
enterprises has materially increased The
fact crept out that the average street chr limo
was very paying concern. IL appeared that
the lucky investor who got In on the ground
floor when these lines wero fret built had
rcapoA fortune, They paid s25 or $50 n
share Tor the stock at ita inception, md after
getting substantial divldciidsS2r years found
| they could sell the aamo original shares for
$500 to $500 share. In many cases pnr-
ohnseis bought stock when the company that
built it was organized out II patriotic mo-
tivos. They wanted to SOC liuo IN their
town or In the part oi tho city In which they
resided. They placed the certificates In theli
safe deposit vaults as . 5ort Of rolic, to bo
norutlnlsed by the next generation as a san-
pie OF the worthy citixen and his public
spirit.
Gradually the town grow or tho section Of
tho city increased wonderfully in population.
The linz began 10 pay, one day the public
spirited citizen, who sacrificed himself for
the interest OF his follow mon, received notice
TINT u dividend would b. paid. He attended
the regular meeting OF tho stockholders and
learned how promising tho infant project had
become. There was talk OF extending tho
road. The town or municipal authorities
wore 20 be- asked TO grant an additional fran
chlso. Tho patriotic stoolholder folt pleased.
lie understood how much moro gratifying
profit Ia than patriotism. The days ran along
along and he was offered par for his stock,
Ile declined the offer with dignity. He had
bought the stock not az an Investment but
from sense Of duty. lie did not caro- 10
sol. He wanted TO keep his certificate as
sort OF souvenir. before no WINS aware another
dividend and larger one was declared.
While there was little market for the stock
because. w tho directors explained. there
was no stock on the market, tho worthy cltl-
zen heard now and then Of shles at prices
considerably above par.
II the Investor woi9 lucky enough 10 hold
on to his stock stlll longer no began to hear
OF the great success Of the cablo and then Of
trolley lines, Old horse ear lines were turned
into electric systems. Sometimes the stock
holders subscribed the necessary capital and
converted the slow horse road into a rapid
transit road In other oasos outsiders came
along and after buying up tho stock and got
ting control Of tho line, equipped 1t with cleo
triolty. About this time the story OF the SYM
dlcatoappeared In the newspapers. A colled-
ton Of capitalists were In search Of fairly
prosperous roads In growing and thriving
cities. Then came the promoter In quest OF
options. He asked tho worthy Citizen to give
him nm option on his stock for a Tow months
at u figure tina. seemed fabulous, Frequently
/, tho patriot overlooked his Original Intentions.
Ho concluded 10 dispose OF his souvenirs.
After al no argued. Il would DO better TOR his
children TO have cash than inementoes. Very
{, likely he would 1.-Two 80 long anyhow that
b something would have 90 DO done with his
shares. Ho had done his duty In the prom
= isas, and ho iolt no recognized his duty at
|, the conclusion, 80 ho granted the option. II
y the promoter was amart he unlonded the con.
trolling interest that no had under option 10
a syndicate. and one day the unaelnsh patriot
disposed OF tho stock for several hundred
= dollars share that originally cost him TWEEN
ty-lyo OF nifty.
The moment tho new owners stepped Ia
:, they increased the capital stock Of tho former
= corporation and hogan using now bonds. In
many cases tho stock was listed on tho local
exchange. DeallngB In the shares became
frequent and active Then, Of course, thu
Z banker appeared. 80 long as the road was
horse concern and the stock was closely held
> no took no Interest in IL. Now that It was an
electric line and the shares were In demand
= he came along To boom II and create spccula'
- ton in It. He formed new channel for thu
making Of commssions aud II didn't take
r. him long to avail himself OF tho opportunity.
: mis- ia how Wall street got into tho street
, oar business. Dig banking houses soon
branched out. They not only bought and
sold the stock but they provided capital ior
purchasers Of profitable roads. They sub.
Q serlbod for tissues. Of street car bonds and
. iioAted them at a neat advance among theii
customers. They advertised that they made
a specially Of such Investments. They gave
y heed to tho respectable and reputable pro
7 inoter who offered thom chances TO buy up q
= road. II isn't necessary to enumerate the
, banking concerns particularly engaged IN this
department Of modern nEauce. II would
probably DO hard to find house Of high
standlng that hasn't taken hand In one 81
IL these enterprises and isn't to-day concerned
I, In tho welfare and prospects Of surface roads
!, as they are formed IN distinction from rail-
. ,.,ad and nlavAtnd linea iu various porfionl