Arizona republican., 1899-07-07
Suggested by the Late Lease of
 the Boston and Albany.
THE DEAL NOT UNDERSTOOD
II Is Believed by Capitalists 10 Be inc Beginning of inc End of inc Destructive Competition Under Which Railroads in inc East Have Seen Operating for 1any Years.

New York, July .-(Speciai. )-The
 deal between the New York Central
 people and the managers of the Boston
 & Albany was in the main a surprise
 to the market, but produced only a
 temporary effect on prices. The sig
 nificance of the transaction is some
 what Of a mystery; and the fact that it's
 values is only guessed at neutralizes
 its effects on values. The unprecedent-
 Cd length of the lease, 999 years, and
 the guaranteeing of per cent divi-
 dends cn the stock for that period, ex-
 cite considerable comment; and it is
 not easy to conceive what reasons
 may have led to these extraordinary
 conditions. Among railroad capital ists, the deal excites the less suprise.
 because the opinion has been gaining
 ground that there is no real remedy
 fer destructive competition among
 the roads except through a series of
 consolidations that will create a series
 of amalgamated groups out of the several lines connecting the Atlantic Eeaboard with the west Discussion ct
 this question has developed into a
 general pan of provincial federation
 of roads, embracing on the one hand
 the Erie, Delaware & Lackawanna
 and the Delaware & Hudson in alli-
 ance with the New York Central; and, on the other hand, an alliance Of the
 Lehigh Valley & Reading companies in conjrlction with the Pennsylvania company; while the Baltimore & Ohio
 might unite its interests with the Southern combination of roads TheseG consultations are not expected to
 early achievements, nor to be premaV ture,y forced, but tC wait for conven-y tent conditions for their consumma- tion. But the scheme has gained such
 a firm position in the convictions of railroad men, that it is very naturally reasoned that MT. w. K Vanderbilt's
 reported acquisition is a first step in this direction, it's object being to bring one of the principal New England lines into harmonious cooperation with the New York Central. There appears to be some reason to suppose that a similar arrangement is under contem- platioR as between the Vanderbilt reads and New York, New Haven & Hartford; which receives some plaus- ibility from the supposed achieve ment effected in connection with the Bostcn & Albany,
 There are symptoms of new drift in the railroad interest which cannot but attract attention. They are streaks of light upon the horizon of a vast in vestment interest which has heen long beclouded by adverse conditions that have snDbornly defied remedy. The facts may not have any immedi- ate conspicuous effect upon the stock market at large, but they introduce e new and very important fundamental facrcr among the influences giving stability to the trunk line securities and helping their advance to a fore most position among our permanent investments.
 The stock market this week has had an improving tendency with an inn pOrtant increase of commission buying the strength and activity being mainly in the railroad properties. Satisfac- tory railroad earnings, more favorable crop reports and the payments Of July dividends were the encouraging feat ures. London buying was also a fac tor on the bull side. which was the means of reducing the sterling rate of exchange to a point indicating that gold exports have about eliminated fer the present at least. To the re- urn of the senior Vanderbilts from Europe, whose influence was at once aXerted in advancing the properties 1f their railroad system, is due the credit of wrenching the market from he hands of the bear traders The advance and strength Of those stocks cad to the belief referred to above. hat an important scheme of connec- ion between the New York Central. he Boston & Albany and the Fitch ,urg roads is near at hand, from which New York Central will derive great benefit. While Northwest and Omaha nay not be taken in on the same basis It present, owing to the fact that they re controlled by ownership of majority of the stock by the Wander lilt family, to all intents and pur- lOses they are under the control of New York Central, and the same may )e assumed as the case with Union 'acific thus giving a direct and per nanent system of transportation from he Atlantic to the Pacific under one centralized influence and policy of management. This means a great deal n upnolding the various securities of he properties so represented. and the eneral market at the same time is ma