Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-10
And BEARS.

Il
Special Dispatch to The star
NEW YORK. February 10.-The Southern
Railway Company has decided TO ask stock
holders to authorize an issue Of 500. 000eoo
development and general mortgage per
cent bonds. OF this amount s15.000.Ooo will
be issued Immediately for the Following
purposes: Four million nine hundred and
sixty-two thousand seven hundred and
seyenty-fonr dollars to refund payments for
equipment heretofore made and charged
to capital; xs.50O.Oo0 to refund investments
In securities of and advances to suberdi-
! nate companies heretofore made for the ac-
QUESTION OF property not heretofore funded.
and ss,536. 223 for double-trach. revision of
grades, new yards. shops and the like.
The balance of s1S5. Co., 900 will be reserv-
ed for the following purposes: Thirty-one
million one hundred fifty-eight thousand
dollars to retire divisional prior lien bonds
on properties acquired, for which no pro-
vision is made in the consolidated mort
gage: l6.0O0o00 to retire not later than
April i. 1903, collateral trust IS; S1S,00S. 600
to retire. as they mature In the next fifteen
years, equipment capital obligations; Si0.-
o0o,000 to acquire capital stocks OF certain
leased lines; 100000 to pay. not later
than July 1. 1905. for the eastern division
of the Tennessee Central and immediate
improvements. After provisions for the
foregoing obligations are made there Will be
left SOC. S34, 600. which will be used to pro-
vide for future acquisitions and better
ments, but to be issued only under strictly
limited provisions of the mortgage, and to
be provided for follows:
In each year not exceeding $5,000,OO0 to De
used for betterments and improvements on
the entire system, and for new equipment
and in exchange for first mortgage bonds
not exceeding In amount the actuai cost
thereof of railroads and terminals here
after acquired. A special meeting or the
stockholders of the Southern railway has
been called to ratify this proposition at
Richmond. Va, on April Is. transfer BOOKS
of the company will close on April Z. 1t is
understood that syndicate headed by J.
P. Morgan & Co. has been formed to pur-
chase the S15,000,0c0 to be issued now
X
Apropos the healthy reactions or the
stock market, an experienced trader says:
"They have way down here of taking
away your vest without unbuttoning your
coat"
A dispatch from Chicago says that plans
for the reorganization OF the Chicago Term
pleted, and announcement of the changes
in ownership Of the property Will be mace
within the next few days.
With the closing of a contract with the
United States Steel Corporation, the Ais
Chalmers Company has obtained the largest
order of its kind ever recorded, being for
sixteen blowing engines.
The total bank clearings of all the clear
ing houses of the United States for the
week were S2,914OS5, 522, an increase or
fhn
or 81 per cent
The most notable feature of the local ex-
change market this week has been the Of
fering of finance and security bills. Finance
bills in particular came out in considerable
quantities whenever the exchange rates raj
lied Drawings of such bills have been
chiefly on Paris. By loaning ninety-day
money in New York at 81 per cent, as was
done, a banker could borrow it In Paris at
lower rate, leaving him short OF francs at
the gold export parity. Consequently there
IL little or no element of speculation in 1t.
but he is assured of being able TO cover at
a profit. There have also occurred rather
large sales of reichsmarks, winch are "
represent in a large measure the purchase
price of American securities recently placed
abroad
Russian finances have begun to show
slight Improvement on the more oraery
February the stock of gold held by the Inn
perial Bank of Russia increased s2o.oOoooo.
Canadian Pacific is earning in the first
half of each fiscal year enough to pay div
idends on its common stock.
-
Brazil has authorized S75. 100000 loan to
aid the coffee growers, and efforts are be-
ing made to float considerable part of 1t
here, but 50 far without much promise of
success.
Says shrewd stock market commentator:
''The news items on balances are not bull
ish and cannot be as long as legislature
in Albany and a Congress at Washington
are In session with their great power for
harm and their petty power for good
II \
If the iron and copper markets had not
had the lulI and reactions of the last year
and half there would be a great deal
more reason than there Is to apprehend
the artificial support of aggressive and
dangerous spectators
+
Adyices from Los Angeles contain some
bullish points on Mexican railroad stocks.
1t is stated that the Southern Pacific has
obtained concessions from the Mexican gov
eminent to construct a line through the
west coast states Of Mexico About 100
miles of the new line have been graded by
the Southern Pacific in the construction of
about 700 miles of road through the richest
portions of the states of Sonora, Sinaloa
and Jalisco and the territory of Topic, to
connect with the Cananea Rio Yaqui and
Pacific In the north and the Mexican Cen
trail in the south. The Southern Pacific is
to receive a bonus not to exceed SIS, 600, 600
at the rate of $4,000 kilometer or about
$4,000 a mile. The sum of $4,000 is paid
for the concession