The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-10-14
WHAT HAS BEEN DONE MAY Be DoNt
AGAIN.

There are no better investments in the
country than in Southern railroads that
are built in sections sufficiently popu-
lated to afford good business. Under
the significant heading of What Has
Been Done May BE Done Again" the
Manufacturers Record, the best eX-
ponent of railroad interests in the South
gave some facts and figures that show
that the South is an inviting field for
capitalists who desire to invest in rail-
road properties. The Record said:
we will enumerate a few instances
of the rapid and phenomenal apprecia-
ton which took place in railroad securl-
ties in the Southern States following the
revival which began in 1S79-'S0. Among
the notable advances may be mentioned
Atlanta & Charlotte stock, which, af-
ter selling at So per share, became a
6 per cent dividend payer, and advanced
in two or three years to 500 per share,
and is still quoted around par. The
stock of the Petersburg q Weldon Rail-
way was considered almost worthless.
Five thousand shares were purchased in
1880 at fifty cents per share. In about
two years it advanced to $40 per share,
and is now quoted about ITO, an appre-
citation of more than half a million dol
lars-a fortune for a man of moderate
ambition to retire on-from an invest
ment of $1,000. Richmond & Danville
Railroad stock was bought largely att
about 50 per share by parties who in the
next few years had opportunity of SELL
ing at $3.50 per share. Chesapeake &
Ohio common stock, after being scarcely
salable at $1.50 per share, found eager
purchasers little later at S33 per
share. The capital stock of the Rich
mond Il Allegheny Railroad was given
away as bonus to bondholders, and in
about eighteen months advanced to $50
per share. The preferred stock of the
Columbia & Greenvile Railroad, which
the reorganizers of the property got
for practically nothing, rapidly adj
vanced to $500 per share, and the stock
OF the predecessor of the Norfolk 81
Western Railroad, the old A. NJ. & o.
X. X, after selling at about 81 per
share was exchanged for the new COM
mon stock of the Norfolk & Western,
which advanced to about $780, The
stock of the Wilmington & Weldon
Railroad, the parent company of the At
lantlc Coast Line system, was quoted
about $50 per share, rose to par on the
payment of regular dividends, declared !
scrip dividend of 100 per cent in n
per cent certificates worth 100, continu-
ed regular dividends, and a few years
later declared another scrip dividend of
200 per cent in a security worth IS. The
extra dividends declared in ten years,
in addition to semi-annual dividends, |
amounted in value to about $500 per
share. The stock, after this enormous
distribution of earnings and assets. is
now quoted at 115 bid. The advance
in bonds during this period was almost
as remarkable as the advance
which took place in stocks.
Atlanta 81 Charlotte first mort
gage rs from So rose steadily to 100,
and are now quoted 120. Charlotte, Col
umbia & Augusta second mortgage rs
advanced from 40 to 100, and Peters
burg & Weldon second mortgage bonds
climbed rapidly from 16 to $50, and so
on. Many more instances of the same
kind could be given. These will suffice.
They show the remarkable results which
spring from wise and judicous invest
ment in railroad securities in the South.
History repeats itself. There are to-day
opportunities for investment as great
and as full of promise as these"