The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-03-03
LAKE SHORE DEBT
TO BE REFUNDED BY A FIFTY
MILLION GOLD BOND
ISSUE.
STOCK MARKET HELPED OUT,
ENED BY THE NEWS OF THE
DEAL.
BURLINGTON ALSO A BIG FACTOR.
Early Ffrmness Given to- the Trad
Ing by Favorable Traffic
Statement-ClOse Firm.

NEW YORK, March 2.-The reason for the
recent sensational advances in Lake Shore
was discovered today when the announce
ment was made in Wall street that the direc-
tors Of the company had authorized an issue
of 100000 Of S19 per cent 1OO-year gold
| bonds, the proceeds to be used for the re-
tirement Of the present bonded debt as IT
natures in the next few years, or in advance
OF maturity, as arrangements may be made
with the holders. Coupled with this was an
announcement that the directors had &C
cepted an offer from well known banking
house for the entire issue at 10212 1t is cal
culated that the saving in annual interest
| charges by the completion of the refunding
VIII amount to million and half of dollars,
from which the stock will benefit This is
said to be the largest transaction in railroad
bonds ever made in this country, and with
one exception it is said to be the highest
price paid for American railroad bonds.
The market today opened with show Of
strength but yielded soon to the effect of a
marked depression in New Jersey Central
which was sold down points on continued
uneasiness as to the financial status of Lehigh
valley Wilkesbarre its subsidiary coal
company Manhattan was also depressed on
the falling off In earnings and the belief that
the dividend will be reduced The fact that
the directors of the road were in session i'm
parted some nervousness to the dealings and
the stock fell 3s. London also sold St.
Paul, Louisville & Nashville and a few of the
low grade shares. The center of depression
thus formed in this market spread through
the general railway list, and Sugar and Chi
cago Gas were also marked down a fraction
in sympathy
ment for January, showing a surplus after
charges OF $ll164S against a deficit last year
or $Sf,IS2 was regarded as favorable, although
attained at the expense of a heavy cut in
operating expenses. The decline was checked
and an advance set in on the strength of this
statement, which continued during the day
WIN me exception Of a sligp reaction on
proft-taking just before the announcement
OF the Lake Shore bonding operation, and an
other just before the close from the same
cause. The strength impaired by the news
OF the Lake Shore project permeated the
whole market and the subsequent prices were
IN many cases the best of the day. Lake
Shore Itself advanced AZ to ME but re
acted to 1897 at the close The Vanderbilt
properties were generally strong in sympathy
and gained from a fraction to a half. The
rise IN burlington equalled x, the stock
touching II. Northwest rose IA The close
was generally firm with gains Of a fraction
as rule on the day.
The bond market continues to furnish evil
dence Of the plethora of funds at this center
| The transactions in the high grade mortgages
are limited only to the amount offered and
| investors are more reasonable and disposed
to take blocks of lower grade issues Deal
ings in miscellaneous securities continue
! heavy, with municipal liens in most request
The Lake Shore lien conspicuous owing
to the announcement of the funding arrange
ment. The second consols advanced 8, and
the dividend Is rs per cent. There were
few weak spots noted. but the general under
tone was strong, many issues recording sub
/ stantial gains. Government bonds were quiet
but we'll held on transactions Of $514 0CO.
The total sales of stocks today were 147, IT'S
shares including: Sugar, $500; Burlington,
20, 100; Lake Shore, 4O0O l.. & NJ. S,4OO Man
haitian, $500; Northwest, 400; Omaha, $780,
Reading, 3,100; st. Paul, 2OS0O; New Jersey
Central, II 400.
The following were the fluctuations Of the
leading railway and industrial shares, fur
nished by c. H. F. Smith & Co., members
New York stock exchange and Chicago board
of trade.