Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1900-02-15
Sends Ten Millions in Railway
Bonds for Sale in America
CANNOT GET CASH IN EUROPE
The Deal IL Chsperoned by New
York Lille Insurance Company
with an Eye TO Business

II has been recently reported that
100000 per cent bonds OF Russian
railway, the Wladikawkas q South
eastern, soon win be placed upon the
New York market. The bonds viii
have the guarantee Of the Russian gov
eminent, and, being intended solely for
this country, the amount VIII be stated
in dollars. The negotiations for plac-
ing the bonds, 1t is said. viii be con-
Quoted by a syndicate which has been
formed by New York insurance com
pany which does business IN Russia and
81 Is understood that the Issue pracu-
caily has been Underwater by this
syndicate. thereby insuring It's success
Presumably II the bonds are not dis
posed of by the syndicate, they VIII be
taken by the life insurance company or
by the other underwriters
Russia recently has been unsuccessful
in negotiating railway loans In Berlin,
Paris or London, not because OF any
doubt as TO the security, but because
OF the tense financial situation in those
European countries, and possibly inter-
national politics may have interfered
with the attempt at negotiation. APP
parently, therefore, the European mar
kets are closed to Russia, at least for
the present. hence negotiations have
been opened with Americans, probably
with the hope that part Of Russla's re-
quirements for money for railway con-
structon may be met In this country.
II Is likely that what may be regarded
as the first Russian railway loan has
been taken by the syndicate at dis
count, thereby making II attractive as
we'll as profitable 10 these bankers and
corporations and the syndicate prOba-
bly, VIII seek TO place the loan Investors
in this country at a premium thereby
making the negotiation still more pre-
ferable. But the underlying motive
which the life insurance company has
In thus facilitating borrowings by Rus
STA obviously is the requirement OF
greater privileges than now are en-
joyed for its business
Should the syndicate be successful In
distributing the above noted loan In
this country, probably Russia viii be
encouraged 10 negotiate for other loans
for more important amounts. for her re-
quirements for railway purposes alone
during current years are understood TO
be heavy. The business motive which
induced the life insurance company TO
become Interested In this first loan. may
be expected 10 appeal TO other corpora
lions In this country, which have deal
ings with Russia The Russian gov
eminent has been liberal In It's pur-
chases OF all kinds OF railway material
In this country paying therefor full
prices and thereby II has established
very favorable business relations with
our manufacturers II seems probable
therefore, that II application should be
made TO these manufacturers to accept
part payment for their goods in Rus
sian railway bonds guaranteed by the
government, the request would not be
refused Thus new and important
market would be opened 20 Russia for
the disposition OF her securities. result
Ing In the promotion OF even more
friendly relations than now exist be-
tween the two peoples and In the ex-
pansion Of our trade with that country.