The times., 1899-06-27

by many millions OF dollars. But more
than this far larger part of the entire
amount will remain in this country and
a much less amount be paid to foreign
security holders. America has bought back
very large part of it's railway securi
ties from outside holders in the past two
years. 1t cannot be doubted that these dis
bursemelts will be discounted by the stock
market as all such facts invariably are
And the clear meaning of this is that
chance favors further good gains in
prices this week.
The Importance of the Vanderbilt deal,
considering it only so far as it has as yet
been announced, is very great The
earnings of the Boston and Albany have
been more than sufficient to pay per
cent on the stock for long time. New
York Central leases the road for 9s9 years
and agrees TO pay the stockholders per
cent. An immediate increase In net earn
ings for New York Central is assured, If
no other results were to be taken into
consideration. But more than this, there
will be the certainty of a large building
of New England business for the system,
and also of large savings in operating ex-
penses. How much further than the lease
of the Boston and Albany the Wander
bits deals will go it is impossible to say.
but there are hints of much closer West
ern connections, If not of a general Van
derbilt consolidation, and the street would
be little surprised at anything in this di-
rection, after the mastery way in which
Mr.. w. K. Vanderbilt has worked the
first coup.
The Vanderbilt securities were naturally
the most interesting at the opening yes
terday morning after the talk of the deal
in some of the New York morning papers.
New York Central advanced sharply to
13S 1-2 making gain of five or six points
in two market days. 1t was held steadily
at near the top price all day. although
there was much realizing of profits after
the advance. Northwest went as high as
161 Ia, Big Four as high as IS IA, and
the Union Pacifcs both had excellent
gains. One of the interesting developments
in connection with the advance of the
Vanderbilts was the fact that London was
heavy buyer Of New York Central all
day, with other stocks. 1t seems very
probable that the Vanderbilts will have
further advances this week, though many
will be inclined now to take up other
stocks that have not advanced so rapidly,
the grangers and the coalers among them
The new developments regarding the
grangers were most favorable. The month
ly report of st. Paul for May shows gross
earnings to have increased S264 600. and
the net to have decreased s4,500. The de-
crease in net despite the immense increase
in gross is due, of course, to the very
heavy betterment expenses for the month
which were charged to the operating ex-
pense account. The increase in gross earn
ings of the road for eleven months of
the fiscal year was 347131 and the in
crease in net for the same period 81 1872
562. The company will earn for the entire
year about u per cent on the common
stock, and 1t is now stated that there will
be an increase of the dividend rate to
per cent without fail. and very probably
an extra dividend besides.
Atchsons statement for May was even
more satisfactory than this The increase
IN net earnings of the road for the month
reached the tremendous total of Si94 600
and the net surplus increased over $500. 900
This makes the total surplus for eleven
months S5,575, GOO, or at the rate of con-
slderably more than $4,000 600 for the year
After deducting about 81, 600 600 for the ad-
1ustment bonds there will remain for the
year for the preferred stock at least 81
100000. The big reductions in operating ex-
penses are continued by the management
These two excellent reports with the
big visible supply of wheat and the contin-
uance of the decline in wheat were the
particular bullish items in the granger
situation. Their effect was manifest all
day. London bought st. Paul and Atch-
ison preferred in large blocks. and there
was good commission house buying as
well. The price of all the grangers OPEN
ed up well, and despite some heavy selling
supposed TO be Standard Oil stock taken
on TO support the market when Mr.. Flower
died. there was little recession from the
highest prices of the day St Paul went
as high as 12S ga and closed at 12s as
burlington got as high as 1873 SIS and clos
ed at 1873. Rock Island advanced to 113 81
and declined only one-half point from the
top. Atchison preferred went to 81 and de-
clined afterwards only to 56 5-S. The talk
OF the street is more bulIish- regarding
these securities than any other in the en-
tire market
The Southern securities, Southern Rail-
way preferred and Louisville and Nash
vile, were advanced fraetionaily during
the day and retained their gains Both of
these securities are believed to be destined
TO sell at considerably higher prices in the
near future. 1t is to be remembered in
this connection that these roads do very
little grain business, but much cotton and
much general merchandise business. They
will be affected, in themselves not n the
least by any reduction in the wheat yield
and the big cotton crop on the other hand
VIII be a bull argument for them Tho