The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1897-03-04
FINANCIAL,
STOCKS AND BONDS.


New York. March 2.-The reason for
the recent sensational advances in Lake
Shore was disclosed today, when the an
nouncement was made on Wall street
that the directors had authorized an is
sue of $50OOO,0OO of 3 ID per cent 100
year gold bonds, the proceeds to be used
for the retirement of the present bonded
debt, as it natures within the next few
years, or in advance of maturity, as ar
engagements may be made with the hold
ers. Coupled with this was an announce
meant that the directors had accepted an
offer from well known banking house
for the entire issue at 102 1-2. The bonds
for the retirement of which provision is
thus made amount in the aggregate to
SAB 100000. This is said to be the larg-
est transaction in railway bonds that has
ever been made in this country, and with
one exception it is said to be the highest
price for American railway bonds.
The market opened with a show of
strength, but yielded before long to the
effect of a marked deficiency in New Jer-
sey Central, which was marked down ?
points. Manhattan was also depressed,
belief that the dividend rate will be re-
duced. London was also selling st. Paul,
Louisville and Nashville, and few of the
low grade shares. The South American
situation had superseded the Cretan af-
| fair as disturbing influence. This eX-
erted Immediately upon mining shares,
and reflected upon the general market
| The center of depression this formed in
| this market spread through the general
| railway list, and Sugar and Chicago Gas
| were also down marked fraction in SYM
pathy. The announcement of the Burling.
| ton statement for January showing a
| surplus, after charges, of Sill, 646
| against a deficit last year of SS7, 1872
was regarded as favorable, although at.
| tanned at the expense of a heavy cut III
operating expenses, and checked the, de-
cline. An advance set in on the strength
of this statement, which continued dur
ing the day, with the exception of a slight
reaction on profit taking, but before the
announcement of Lake Shore bond opera
tons, and another just before the CLOSE
from the same cause. The strength i'm
parted by the news of the Lake Shore
project permeated the whole market and
the subsequent prices in many cases were
the best of the day. Lake Shore itself adj
vanced IL to III IL, but reacted to
169 ~ at the close. The Vanderbilt
properties We're generally strong in sym
pathy, and gains from fraction to IL
the latter in Michigan Central, Were
noted. The. rise in Burlington equalled
| L l.
| / 3-S: Chicago Gas, Consolidated Gas, l
and Spirits preferred, in which the buy
ing was very pronounced, 1 IA, the bonds
of this property also showing strength
Manhattan sgained 1 IA, and New Jer.
,sey Central1. There were some fraction
| al recessions near the close, but the close
| was generally firm with gains of frac-
ton during the day. ,..
The bonds continue strong, in striking
evidence of the plethora of funds at this
center for which there is practically no
demand, owing to the congested stock
| transactions. The speculation in high
grade issues were limited only to amount
of orders, and investors were more dis
posed to take blocks of low grade issues
promising a reasonable return on re-
vival of speculative activity. Dealings i'm
miscellaneous securities continue heavy
at advancing prices, with municipal liens
in more request. The Lake Shore liens
were conspicuous owing to the announce
ment of the funding arrangement. There
were a few weak spots noted, but the
general undertone was strong with many
issues recording substantial gains, IN
Guiding American Spirits, Is 1 I'D. and
Tennessee Coal firsts, per cent. Sales,
1857 900.