The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-02-15
TURNS TO US.
Russia Places 100000 in
Railroad Bonds
With a New York Syndicate At
ter a Failure
TO SELL IN EUROPE.
Security All Right But the
Money Is Lacking
In the Financial Circles of the
Old World.

New York, Feb. 15-The Press says:
It has been recently reported that $10.-
00C 900 four per cent. bonds of a Russian
railway, the Wladikawkas and South
eastern, soon will be placed on the New
York market. The bonds will have the
guarantee of the Russian government,
and being intended solely for this coun-
try the amounts will be stated in dol
lars. The negotiations for placing the
bonds, it is said, will be conducted by
syndicate which has been formed by
New York life insurance company
which does business in Russia and 1t
is understood that the issue practically
has been underwritten by this syndi-
cate, thereby insuring its success. Pre-
sumably, if the bonds are not disposed
of by the syndicate, they VIII be taken
by the lie 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 RuSsia'S re-
ouirements for money for railway con-
struction may be met in this country.
1t is likely that what may be regarded
as the first Russian railway loan has
been taken by the syndicate at a dis
count. thereby making 1t attractive as
we'll as profitable to these bankers and
corporations, and the syndicate prob
ably viii seek to place the loan among
investors in this country at a premium
thereby making the negotiation still
more profitable. But the underlying
motive which the life insurance COM
pany has in thus facilitating borrow
ings by Russia obviously is the acquire
ment Of greater privileges than now are
enjoyed for its business.
Should the syndicate be successful in
distributing the above noted loan in
this country, probably Russia will be
encouraged to negotiate for other loans
for more important amounts, for her
requirements for railway purposes
derstood to be heavy. The business
motive which has induced the life in
surance company to become interested
in this first loan may be expected to
appeal to other corporations in this
country which have dealings with Rus
STA. The Russian government has been
liberal in its purchases of all kinds of
railway material in this country, pay
ing therefor full prices, and thereby it
has established very favorable business
relations with manufacturers 1t seems
probable, therefore. that IL application
should be made to these manufacturers
to accept part payment for their goods
in Russian railway bonds, guaranteed
by the government, the request would
not be refused.
Thus a new and important market
would be opened to Russia for the dis
position of her securities, resulting in
the promotion of even more friendly re-
IatiOnS than now exists between the
two peoples and in the expansion of our
trade with that country.