The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-01-16
Financial Circles Look for Big
Railway Deals.
Western Roads Earn Enough to
Warrant High Prices.
BOOM IN BUILDING.
More Expected Than at Any
Time in Twenty Years.
Gossip and Matters of Interest
in Railroad Circles.

Interests in Wall street and other
financial centers of the country are
spreading the idea that important de-
velopments in railroad finances may be
expected in the first half of the current
year. The belief. or report to this ef-
feet has found lodgment with important
commission houses and financial in
terests in and out of New York.
It is true that the same general idea
obtained last year at one period. This
time sober minded persons are again
impressed with it. The general market
acts on tips" and generaIities, but it
acts nevertheless, ana toward a higher
level.
But plainly, the buying as a whole is
not of d specific character or on a gen
eral view of business conditions war
ranting plain belief that stocks should
sell higher, and in such circumstances
it is difficult to form satisfactory
opinion on the price outlook. Money is
again almost normal in price, and the
same rich men are under security
values.
Again that the ST. Paul. Atchison,
Topeka & Santa Fe, Northern Pacific,
Great Northern, and Union Pacific
should command high prices is reason
able in view of earnings. In the case
of Union Pacific, there is shown profits
of II per cent on the common stock.
The earnings of Great Northern and
Northern Pacific hold large. There is
reason for this since the increasing
wealth of the western country has
grown up to the capitalization of these
various lines. and a property which can
make II per cent on its common share
issue must be considered fine Garner.
It has reached a stage of certainty as
to profits. The business is in its terri
tory, and enterprise is SO diversified
he ir1a nv
degree of stability of earning power.
There has not been in nineteen years
what may be termed competitive rail-
road building on a large scale. In 1887
| the miles of new construction were r.
1888. The following yea Z JOG miles were
built. Since that time the new construc-
ton has averaged $500 miles. In 1904
the increase was 4,168. Meanwhile, in
nineteen years the population of the
country has grown from 5S.S00.0 600 to
81, SIS, 000 or 40 per cent. The west has
more than shared in this gain, as it
has also in the country's increased
wealth, which in the. period named ad-
vanced from SOS, 31S 100000 to 100000
/ 600 900. or 81 per cent
4 Railroad receiyersEips have CORE
/ spondingly dwindled. In 1898 seventy
! four roads went into receiverships. haV-
! ing a mileage of 29s3349r and a stock and
/ bond capitalization of S1,7S1, 046.000. The
/ following year the number of roads go
/ ing INTO bankruptcy WAS liliEly -Sies II Y
! the mileage 7.025, and the capitalization
| $685., 791, coo. In 1904 eight roads became
! bankrupt. The mileage was IA, and the
capitalization $36 900, GOO.
/ In 1906 there is promised competitive
railroad building in the west and north
west But indications do not point to a
volume of EQUALIZATION and sub
sequent bankruptcy. The new projects
are undertaken by railroads with full
! treasures and by experienced railroad
fnancieFs. The new lines can hardly
/ be called ventures, although they will
/ be transcontinental in character instead
4 of being branch OF supplementary en-
/ terprises.