The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-11-27
FINANCIAL AND COMMERCIAL.
WYpNEaDAY. Nov. "a.

The official announcement, finally, OF the
lease Of the Manhattan Elevated Railway
system to tho marlborough Rapid Transit
Company did not avail to-day to check
the declining tendency Of the general
market for securities. In fact, the mar
ket seemed weaker after the announcement
than before. not 30 much. perhaps, beca,se
Of doubt as TO whether the present price
Of Manhattan stock had not discounted
all the benefits of the proposed arrange
ment, as because of the application of the
well-known principle that when the -mys-
terry" Of a market movement is disclosed
the movement itself il apt TO eliminate.
Those who are TO operate the new Rapid
Transit subway agree. ii seems, to lease
the Manhattan Elevated Railway lines for
a period of 900 years, paying 10 the Man.
haitian stockholders the net earnings Of the
system. providing these are not more than
per cent. for the first three years of the
lease and paying 7 per cent. flat thereafter
until the lease expires In addition. the
present stock Of the Manhattan Railway
Company is to be increased IS per cent
in volume for the purpose Of providing
funds for completing the electrical equip
ment and other improvements planned
for the property This will give the Man.
haitian stockholders rights" to the value
Of between 0 per cent. and 7 per cent.
of their present holdings. calculated at
the closing price of Manhattan stock
to-day. The question for the present
holder Of Manhattan stock is therefore
this, IL the price Of $50 for Manhat tan
that is. with the rights deducted-too
low or too high for per cent. stock.
yielding the investor about 40 per cent.
per annum and guaranteed by the Inter-
borough Rapid Transit Company? II must
be- said that the prevailing comment in the
financial community to-day was that the
ruli price for Manhattan was IA high as,
under all the circumst ances. it ought to be
There are great people behind the Inter
borough Rapid Transit Company. Of course.
but the only asset of the company itself
so far as is known. Is a contract with the
city 10 operate the new subway tunnel
for limited period Of time. II il observed
that from April /. 1903, 10 Jan I. 1909, the
lessees Of the Manhattan company only
agree to pay each year, a. rent al, the net
earnings Of the Manhattan company for
that year, not exceeding per cent. and as
these net earnings will be determined by
the auditor Of the marlborough company.
il is far from certain. obviously. that "a
great a sum a. per cent, will be paid to
the Manhattan stockholders during this
period. II is we'll underst God that the
chief benefit which the PETERBOROUGH Ra Did
Transit Company believes it will derive
from its lease is the possession Of the Nan
haitian cpmpany's new electrical power
10 MT hos
not "a vet taken any steps toward erecting
power houses Of its own. and its hope is
that the present power houses of the Man
haitian @ ,npany will be sufficient for the
operation both of the Manhattan system
and Of the trains in the new subway. This
is a question which might seem open to
doubt. II is TO he assumed, however.
that those who have planned the arrange
ment are fully satisfied "a 70 it's feasibility.
Manhattan stock broke from l57 20 1856
as soon as the terms of the lease were def
nitely stated and closed at 1850 on a very
large volume Of trading. The New York
Central shares fell ~ points by reason Of
the final appreciation by spectators that
the New York Central company Is in no
way concerned in the Manhattan Inter-
borough project; although II Is possible
that the formidable opposition now making
to the plans of the road for the increase Of
its terminal facilities above the Grand
Central Station and the growing belief Of
many observers tha, the construction of
proper terminal facilities will either cost
the New York Central company an enor-
nous sum of money or compel it TO remove
its main depot To place above the Harlem
N L. A..
Other stocks that suffered notable losses
were Union Pacific. American Smelling
and Refining, Reading Baltimore and
Ohio and Sugar While special reasons
for lower prices attached to nearly all the
stocks mentioned, they would probably
have all suffered more or less from the
general weakness Of the market. The
large selling Of the Union Pacific issues in
the last few days undoubtedly represents
the fear of holders of these stocks that the
personal feeling between Messrs Gould
and Hartman engendered by the dispute
over the Colorado Fuel and Iron proxies
may lead to disturbance in the railway
world. Wall Street is loa,h TO believe that
the controversy over Colorado Fuel and
Iron will bring into hazard properties in
no way connected with the warfare: bu,
il recognizes that two great financial inter-
ests have not only parted company, but
are now animated by an intensely hostile
and bitter feeling toward each other. So
Wall Street is getting ready for whatever
may befan. There seems to be no doubt
of one thing. and that is. that a railway
line competing with the Texas Pacific for
part Of its extent has been planned by the
Hartman party.
The very great drop in the price Of silver
naturally affects the American Smelling
and Refining stocks unfavorably. as the
process Of refining silver constitutes abou,
one-third Of the company's business, and
the company has. moreover, endeavored
to hold the price" Of silver for the benefit
Of its large stock of that metal. much az
the Amalgamated Copper Company did
with copper The effect Of this extI aor,iinary
depression in the value of a money metal
in the general business world has yet to be
Witnessed No reason was assigned for the
decline in Sugar stock except vague rumors
that the COmpany's business IL not as pros-