New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-11-13
fiuaur,a,
The Financial World

gress. Both parties had claimed a majority
Wednesday morning and the market showed
the uncertainty by its webbing that day, after
preliminary squirt al the opening on the
Roosevelt victory In this State. That, Il course
was more or less sentimental; since national
affairs were not involved in the Gubernatorial
contest. II was sort Of market expression OF
satisfaction az the success Of man Of pugna-
clous honesty. Also 1t Is no liue satisfaction
10 have al the head OF the State one Who come,
Of good stock and Is gentleman. One cannot
think OF him as at any time ranking his dirty
linen home from Washington a. Pub. Docs"
TO the weeks washing bills
on Thursday morning It known that the
/ House was all right, while the Serate neve,
was in doubt Then the buying became fast
and furious. Public and private cab es to the
other side had started foreign purchases on an
unusual scale. which increased as the dispatches .
continued to come In showing that In whatever
! locality tie silver issue had been made specially
prominent in the West the defeat OF the silver
candidate had been most pronounced. The for.
elgn buying that day OF bonds vas quite un-
precedented; and stocks also freely bought,
the Pacific issues particularly. so large was
this buying that exchange ratesswere afr ,cted
and before three o'clock foreign exchange had
perceptlbly weakened. Yesterday" said the
head Of a great banking house. speaking on FRI
day, I'VE were unable to supply til: orders for
;onds cabled to us, and the buying Of the
best investment character" The volume OF
bond transactions on the Exchange that day
broke all records.
On Friday morning the market opened up to
the level Of the high quotations from London,
and there was apparently an accumulation OF
orders over night in the commission houses.
The first hour oe business WAS IN old time bull
Furore. Naturally there was some realizing by
people who had been carrying stocks bought at
lower prices before election ard the market had
a little reaction at the close but Il was up
again yesterday TO the top notch Of the week
with a sensational drive against the short In
terest in Sugar; and the b.ll feeling is now
strong enough to anticipate 40 bid for every
thing which doesn't go higher
The qualification Of the banking comm lily
over the collapse Of the silver issue, Is nos,
pronounced 1t is evident the divorce b-tween
the price Of wheat and the price o. silver has
done the business in the West even more thor
oughly than the defeat of Bryan. II was the
! luckiest thing in the world that tie silver ad-
vocates pinned their faith argument
which could be ub,littod to the memorable test
/ Of the market. II is argued now that the l.e-
! publioans have two years Of clear sailing. nav
ing House. Senate and President. In this period
! there must be legislation 10 esta dish the cur
rency on a firm basis. Ii the party does not re-
deem its pledges nov. il can .ook forward 70
defeat at the next Presidential election for II Is
/ certain that party cannot live on neSations
| We have too. good crops this year with excel
lent foreign demard for them; and that assures
| twelve months good business for the railroads in
| any event.
The granger stocks and the Pacifics, were
naturally the favortes in the speculation. The
buying OF St. Paul. mainly on foreign account
| Ghis stock being the leading American specu~
! lative abroad was very large. Very high prices
will be seen for these western stocks before
this bull speculation has run its course; and the
| same may be said of the Pacific issues. which
are destined TO great growth from the rapidly
increasing trade with the Orient. Let II be Kept
ir mind with all the fact implies. that the PEG
ples of the Orient are beginning to eat bread
The Atchison road emphatlcally Is one OF the
Paciics more so than ever. now that 1t is get
ting It's own independent entrance to san fran
cisco There Will probably be more speculation
In the stocks and bonds OF this road than OF
any other connecting with the Pacific. In It's
reorsanized form the fixed obligations OF the
company are safe under any conceivable CIR
| cumstances: with its present efficient manage
| ment the contingent obligations that is % say
the adjustment bonds and the preferred STOCK
are likely to see prices which viii make those
now going look very cheap.
! The road earned last year, in round NUMBERS
100000 900 Everything indicates that it VIII
earn not less than that this year, and II may
| earn more. The working expenses were nearly
I 73 per cert Very large sums were spent IN
! permanent improvements, SO that this hgn
ratio of expenses be. and will be- reduced
After paying all first charges and rentals ana
the full per cent on the Adjustment Is there
was a cash surplus OF nearly Sl9OOOVO. ms
surplus remained for the preferred STOCK Win
10 per cent working expenses.
Consider what the position of the Adjustment
bonds is, when a surplus like this remains ai'ef
the full per cent is paid upon them al ths@
ratio Of working cosi They look safer for their
interest than lots If bonds selling at mucn
higher figures in the market. The heavy buy
ing of these bonds lately while admittedly OF
speculative character largely. is evidence OF
what the keen-eyed Spectator tn nhs OF the'
future. II is the Spectator who always pre-
cedes the slow investor.
Supposing the working cost Of Atchison 10 be
reduced TO between 90 and 65 per cent. Say ID
ner cent-atout the same the Northwest
| Then the situation in a nutshell would be THIS:
! with $40 10000 gross earnings. present hXea
charges. and the full per cent paid on 'ns
/ Adjustment bonds. there would remain sur
plus in excess Of S5,o0000o. applicable 10 ciV''
dends on the preferred stock.
This gives us the basis of calcula ton for INC
present speculation in the stock. and the reaso"
fo. the big buying OF the Adjustments lmas''
nation alone can picture TO what heights Ate"f
scn stock would &C were the WORKING expenses
reduced to the Northern Paciacs ratio or Az
per cent This would allow nearly $2loOV'V"
net 10 distribute among the bond ano stocA'
holders or enough to make Atchison cSnlHo'
stock a very handsome dividend payer Con'ihs
back 20 facts however, 1t wiz be seen "hA'