New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-01-30
The Financial World.

derbilt system which was referred to rscs.,.
in this column as deal as important IN o.,
way as the famous West Shore deal 10 nm, :.
a measure public property. The main ouu,..
of 1t have been given out. ard the securitlss a.
fected have advanced IN a corresponding de,-..
That part Of the scheme which provides for ~.
union OF the Lake Shore and New 70. K Cont.
will, It liz stated be Officially promulgated IN
few DAYS: the union OF the Michigan Cent?.
| and Canad Southern through the West cho.
! is delayed through the absence ~ Mr. corne,,,
| Vanderbilt in Egypt. After the official docn
ments are published. and the details o. N.
new scheme are known. outsiders will h.v.
! facts upon which 10 base a judgment. but At I'M.
time they are in the dark. On tho face Of Il
price Of 300 FOR Lake Shore. 10 be paid IN 81 %,
cent bonds. seems rather high. With the unlo,
! Of the roads 1t is understood that some sveen
/ ing changes will he made In the personnel an,
the administrative methods Of tho Central slsr,
point TO Mr. Galloway as the coming man. n,
influence ~ this new deal on the speculstv,
situation must be bulllsh-ndeed II has a.
ready exerted a strong influence that way TIT
West Shore deal was made at time when thu
temper of'the public was far less bulllsh thar
II Is now. but ii took powerfully and the mas
/
OF PUSHES to very high figures much higher 10
many cases than the facts warranted. IL VIII
probably be the same in this instance
While the daily transactions In stocks han
been only fairly large. the dealings In bond,
have been on a scale Of unprecedented magnl
tude. Among the most active issues have been
the new Union Pacific As. now quoted about
93 and destined 70 see par in due time. III,
approaching. and very large dealings 10 tho
new preferred stock are reported OF courN
# is all done on contracts when issued" II
is expected--we may soon be able N use mon
nositiye phrase-that the stock will become
dividend payer this year. The new Roct
Island As quoted In the same way when
issued" are selling about lob. II the security
market did not constantly present such anon.
allies. one would wonder how per cent Rocs
Island bond could be selling at lO3 and a.
Atchison first per cent could be selling aooutG
There are such anomalies, however; but they
always get corrected in time. as this one will
When the Speyer syndicate purchased the
Rcck Islands at 99i4 attention was called here
70 the earnings Of the Atchson and Rock Island
roals It was then pointed out that the latter
road would earn 20 millions this year. on tho
most conservative estimate. Interest and rental
charges under the refunded bonds would equal
81 GOO 900. which is Is per cent OF ~ millions
At 20 per cent working expenses. the road
would have S6OOOO0O net, out OF which TO pay
charges OF 81, 600. 900. The bond. therefore. is
perfectly safe one. But are the Atcnison Il
less safe By comparison? On the contrary
+bev are safer II the Atchison did not in the
crrrert six months earn a dollar more than Il
did for the same period last year It's gross tha
escaI wear would be S36.0OO00o. Rental charges
and Interest prior to the income adjustments
foot I'D S. 400 900. which sum VIII De a !'W
reduced by the conversion or the ola duar
an.eed Fund 8s into the As The sum or So,fV"
OOO ia II per cent Of S36,oG0rro Working ex'
penses Of 70 per cent leave net OF slooo"V"
| uare then we have for the Atchison this fiscal
vear net earnings OF Sl0sCOOO0 to pay $500.
! 600 of charges Even If the Atchson gross 'eH
| away by the large sum OF six millions IN any
wear. owing to crop failures. etc, there woua
still be 50 OOO0 net. at the same ratio OF WORK
ing expenses. to meet the fixed charges "n'en
would give surplus over them OF so""'o"
Arv uar the Atchison As may be viewed theJ
! oor os cafe a per cent bond az there is y
! the market.
Lose attention than the Importance OF 'hs
It,, daserves has been given TO the improves
| s,.,o,. ., tho b,turninous coal trade through
a. INTERSTATE agreements Just concluded TIL
industry gives employment to oVV" NINE"
o,o,. ord number OF railroads are entirely DE-
,a.,, unon II Anything that affects IN an
important degree an industry as great as tnl''
Ia worthy OF serious attention. Inc interests"
agreements referred to are designed 70 s'op 'n'
ruinous competition which had cut tho fhine's
wages TO the starvation point ana reaucea "
actual or threatened bankruptcy many OF u'
soft coal roads SO far had this conpeuuo"
gone that OF one Ohio road. check mao !" v
drawn TO pay expenses on every ioaoeu us"
that left the mines. the carrying rates nA''Hs
been so reduced that they did not pay ,ne VS.
of hauling This has now all been stoppeo ~.
rates have been restored 10 a paying basis anu
with this the miners wages advanced SUI
stantial addition TO the wages or -'V'rV me-
means an important increase IN their pur'@''
Ing power: and in respect TO the raiIFoaus =
pecially those Of Ohio, as ruinous cohipeu"0"
brought them down. its stoppage may DC Ga
pected TO restore their securities 70 the e's
| they formerly held.
The traction stocks have continued actNe
but rather less than they were. A DISK W.
! rowing demand developed yesterday TOT NaN
! haitian In respect to Brooklyn Traction. II may
| no said that the directors of the company CIV
| equally SURPRISED and grstihed az the uhsA
nectedIv large increase OF revenue which Is o.
,aadv coming in from the Brooklyn bridge
| traffic Their calculations have been oohs''
erably exceeded by the actual results ana -
this they have been buyers Of the stock. wh0S
! they say is now oming In sight or d''D'"
/ higher
the Flower stocks ,of which Brooklyn Iracu0"
IS one) movement I'm Chicago Gas oush' 7"
| be due about this time.
Another dividend on Northern Pacinc ~ WV
ally announced for next week IL IL To DC u'
| clared out Of the earnings ~ the company '0
the six months ending December 31st. ana '"''
will make > per cent for that period "nl'e s'
o,ner nor cent will certainly be paid FOR o'