May 28,18W





Record   and  Guide.





846







HPIlÍ^ IHfiB





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"Eniered ai the Posi-offlce at New York. N. V.. as second-class matter."





VOL. XLIX,





MAY 3»,  1893.





No. 1,363





THOUGH not encouraged by very large results the bears con-
tinue their attacljs on the stock marlíet. The largedecl'nes in
Atchisun, Northern Paclfic, Rock Island, Louisville & Nashville
and Missouri Pacific were attained some time ago, and thest, when
sold off to effect other issues, have shown a power of recovery very
exasperating and costly to the short seller. In attacking St. Paul
and Burlington & Quincy there bas been a gre.Tt waste of powder
and a good deal of burning of flngers. Atchison has been sup-
ported as a part of the plan to make a new reorganization at the ex-
pense of the iiicome bonds alone and has helped to strengthen the
market. Though this plan has been so carefully devised
to compel its acceptance by the securily affected,
it is somewhat surprising that it is received with
the favor so far apparent when it is borne in mind how keen must
be the disappointment of the income bondholders at having to
forego all prospects of the high rate of interest which was to recom-
pense sacrifices made when the system was reorganized three years
ago. If the plan of refunding the incomes is eventually successful,
and there is good probability that it will, it wiU show how far
security-holders are wilhng to go to aid" a nianagement in which
they have confidence, notwithstauding some errors ot judgment
for which the security-holders have to pay. Reading and the other
coalers are and will continue to be points of strength in the market.
The Reading Company has in the first five mnnlhs of the current
fiscal year made iiicreases in the net earnings so nearly equal
to the amount by which it failed to earn fuU interest on ihe
whole of its three classes of income bonds in the last fiscal
year, that a comparatively small increase per month in
ihe remaining seven months will insure full interest on them
this year. While frienda of the property may be over-sanguine as
to the results on the stock, there is no queslion that earnings look
very favorable for the Second and Third Incomes, the tirst of which
received only part and the second no interest last year. This being
the case the Third Incomes ought to sell away from the stock more
than they do. Bond buying is increasing in volume, but retains its
fuU proportion of discretion. Sure things are sought out and other
kinds left to the speculator, or alone. Properties in the South and
West are likely to continue to offer an attractive target to the
bears so longas flood news and crop bulletins continue of a depres-
sing character ; but there have been signs of resistance which may
make attacks on them more dangerous than ever, especially con-
sidering that those that haveshown themselves to be most vulner-
able have already had such a big drop and thatmoney continues to
be cheap enough to invite and encourage speculative buying.





and some otber high clas-j investments very near the level of
two years' back—six months prior to the collapse of the
Barings. Even in Australian stocks the pre'ient revival has
written up iully one-half of the previous fall. A conservative
authority, such as the Eeonomist, tliinks that this movement has
been somewhat too rapid. An Australian governmpnt which a few
months back wanted money and found that it could be obtained
only by the severest sacriflces, may now have it offered on niuch
better terms and may thus be led into borrowing again. If the
advance continues this will very certainlj happen. The advance
cannot, however, contiiiue very much lonĸer. Engllsh investors
will haveagain to seek outside flelds. and the success of a recent
loan for $10.000,000 guaranteed by a prominent American railway
may indicate where the money wUl go to.





THE increase in price of standard securities on the London
market, in consequcnce of the low rales for money, continues
to be marsed and ia spreading in soots to an inferior class of issues.
In a very short time English Consols have advanced something like
2 per ceut—a very substantial movement in such a security—adding,
as it does, upwards off 10,000,000 to ihe market value of the stock.
India securities and other trustees' investments have risen to quite a
similar extcnt, and in Colonial Government and corporalion
isBues the advance has been greater. Australian and
South African securities, particularly, have beeu advanced
in a really slartling way. In these previously depre-
ciated iuvestments, not 2 per cent but 4 to 5 per cent
is mucn nearer the dimensions which the rccovery has aseumed,
and ihis spread over some iG2.ĩ0,0o0,000 means an apparent gain
in the market valne of their principal of upwards of í 11,000,000.
In ôther classes of Coloiiial issues tbe improvement has been less
marked, but higher prices have been reaihed, and the same is true
cf the great majority of investments. Even securities which have
only a speculative value havealso felt theeffectof thebuyingmove-
ment. Argentine Government loans have improved their position
as much as from 10 to 15 per cent.   These advances bring Consols





SOME weeks ago we referred to an article in May Scrtbner's on
the Rapid Transit Problem, by Tlionias Curtis Clarke. In the
same magazine for June Mr. Clarke proi)ounds his solution for the
problem. According to him, in an ideally perfect system of rapid
transit the liiies should run from the businesscentreof the city. in
all directions, to the suburbs, like the spokes of a wheel; they
should follow those streets which are already business thorcugh-
fares; the cars must move with equal speed in all parts of the city,
aud nochanges should be necessary; and,finally, thesystenisliould
becapable of extension through tlie outlyingand thinly-settled dis-
trlcts without too much cost. Doubtless the ideally perfect system •
would need somesuch descrintion as that which Mr. Clarke gives,
but the Iist of necessitiescan hardly be considered sufHciet t. Next
to running along tbe line of ihe greatest Iravel it is most necessary
that the ideal system should be of enormous capacily, both as to
the speed and number of trains, and yet should be cimslructed at a
minimum cost.and it is tliesetwonecessities whichmakeitprobable
thatNew York, and olher cities, too, will need to call the munici-
pality totheir aid in order to oblain what they need. Mr. Clarke,
indeed, believes that New York should undertake the
building of its new rapid transit sysiem, but only on
the ground that the Rapid Transit Commissioners' scheme " Iries to
throw all the burden on private capital, when it ought tn be shared
by the whole community. as the whole community is benefited in
many ways." Exactly what this means we do not pretend to
know. It is sufficient to rest the plea for municipal ownership
simply on the ground of eeonomy ; it is the only practicable way
of constructing an expensive syslem at a comparativtly small cost
in fixed charges, and of preserving to the city the increase in value
of Niiw Ynrk's most valuable franchises. Il; is not a question of
throwing the burden of rapid transit on private capital ; we should
rather say that is a quest.on of throwing the burden of private
capital on rapid iransit. The cost of improvements in intevmural
travel will. of course, have to be paid by those who beneflt by it—
by the people who use the new system. The municipality or a
privatecorporation would simply be the agency in disbursing the
funds ; and our point has always been that the former would be a
cheaper agency tlian the latter. It is noticeable that Mr. Clarke in
his account of thematter fails to rei'er to an idea for dlstributing
the cost of new rapid transit systems, which is now being very
extensively discussed. Not only do the people who use ihe new
route benefit by it, but it also increases the value of a great deal
of property ; and it is claimed that, instead of makingthe travelers
pay all the expenses of a rapid transit system, at leasi some of the
initial charges should be assessed on tlie property beneflted—in
which case it would be possible to reduce fares to passengers. We
do not say that this should be done. Such a radical innovation
would have to be carefully canvassed ; and there are ubviousJy
many practical difficulties in the way. But this suggestion should
not have been omitted from any discussion of the rapid transit
problem.

m----------

ON another mattor connectod with rapid transit, Mr. Clarke is
rather more sound. Like all competent atid unpríjudiced
observers, he has come to the conclusion that the elevaled roads
can and should be made more useful than they are. He says : " As
auy comprebensive sclieme of rapid transit for New York would
require a long time to carry out, present relief can best be obtained
by giving greater faciiities to ihe elevated lines. Instead of being'
prevented from laying thiid tracks and acquiring better
terminals, they should be encouraged, so far as it could
be done without cost to the city." It could not be done
at all without cost to the city; but as the benefit would
largely out-balance the cost, the necessary permission
should be granted to the Manhattan Company. It is curious how
completely that pbase of the matter has been neglected of laie.
On tbe one hand, thc absurd citizens' movement to turn the com-
pany out of Battery Park lias coliapsed, because it was blown prin-
cipally outof wind. On tlie other hand no efforts havebeen made
eitherby tho property-owners or the company to lu-ge the necessity
for an increaseof facilities. The iraveling public have apparently
settled down to an acquiescence in the present discomforts which