JfflTcli 30.18i>5
Record and Guide.
497 '
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Vol. LV.
MARCH 30, 1895.
No. 1,411
For Brooklyn matter, see Brooklyn Department immediately following
New Jeraey records {page 527),
rTiHE stock market has some of the aspects of an old-fashioned
-1- ball market. Espected reactions do not corae, but instead
a duUneaa, ultimately broken by a movement in some special
quarter, as, for instance, in the recent caaes of Reading and
AtchiBon. Public attentiou is likely to be drawn soon to the
|faeto£ the business that is beiug done iu briugiug tlie Uuited
States 4's recently placed in Londou back to this side, American
buyers seem willing to pay more for them than English holders
value them at, aud certain housesheiv are eucouragingthe pref¬
erence, lujview of the occasion that necessitated tbe issue of
these bonds, and tbe im'*ortauce of keeping as many of out
securities on the other side .,o ^ ossible, this is neither busiuess
iu its broad seuso nor patriotism. A thirty-year United States
government 4 per ceut bond, free of taxes, is a good thiug to
have, no doubt, even at cuirput quotations, but a better thiug at
jthe present momeut would be to make foreigners see this fact,
instead of chasing a few dollars, regardless of the consequences
|to the tiuaucial coudition of the country. Regarding trade con-
iditious, the improvement continues to^bc all, oi-uearly all. East,
|lf anything were wanted to emphasize this fact, it could be
found in receut reports of railroad earnings, which ahow that
iwhile Pennsylvania, Reading, Three C's and other properlies
jeastof tlia Mississippi are making good showings, Burlington,
St, Paul aud Northwest make quite bad oues. Matters are prob¬
ably not quite so bad iu the Southwest, hut earnings there as yet
show uo substantial recoveries, though they do not outdo the
record of last year, which, however, was a very poor oue. Two
j years agothcblataucyof the West gave expression to a wish that
that uart of the couutry might be divorced from the East. Crop
failures, and a divisiou of sentiment in matters of currency, have
brought about a separation in a certain sense, and our Western
friends have now a taste of what would befall them if their wish
was gratified.
EUROPE has more demaud for money, so that the hoards in
the great banks are showing some signs of diminishment;
not enough yet to influence discount rates, though that is pos¬
sible in the uear future. Business ou the exchanges is expand¬
ing ; itis not ouly governmeutbonds that are in demaud, but
investors are also looking favorably ou things that caunot be
classed high, evidently with the thought that the tide ia turned
and they are good for a few years atleast, and iu the meautime
will not only pay interest, but yield a proht by rising prices as
well. The signal for this chauge wasthe improvement of coudi¬
tious ou this side of the Atlantic. The;United States experienced
the last of the cycle of national calamities and happily is uot the
last to recover, but her po.sitiou is so importaut that there was
no real confidence anywhere uutil she showed at least some
ability tocope withherdiflBcuIties. The Argeutioa, which began
the trouble, have also settled dowu to better things apparently,
aud other countries will doubtless soon fall iuto line aud the
world get back into normal conditions again. This is, of course,
presuming that our currency troubles cure themselves, or a cure
is fouud for them by Congress. Notwithstanding the btiying of
Americans by Europe, capital there will always be kept iu miod
of tho dangers which our currency preseuts by the finaucial
iournals. German capital is doing its best to deter the goveru-
iraeut at Berlin from calling a uew bimetallic conference, urging
[that such a step would throw doubt ou its intention to main-
itain a gold standard and thereby work harm to the trade of the
'Empire. Australia, it seems, is to be lifted from the depths of
her iudu.strial desolation by theaame ageucy that built up the
: country origiiijujv, that of gold. In 1894 the Melbounie mint
I received the largest .'>mount of auy year; receipts have risen
without break in the last-iour years. At Sidney the result was
(lot so good, though quite encouraging. The product forthe
Australasian colonies for the year was slightly under 2,000,000
ounces, with the probabilities f.avoriug an increase iu 1895,
principally owing to the developmeut of the Western Australian
fields. While referring to gold it is interesting to note that tbe
Raud output of January was 177,463 ounces, compared with
149,814 (muces, the theu phenomenal output of Jauuary of last
year, aud that of February 169,295 ounces, compared with 151,-
870 ounces in the same mouth of 1894. Tne iucreaae for the
two months is over 15 per cent.
The Atchison Plan,
THE part that Atchison securides have taken in the recent
advauceof Chestockmarketiudicatesthattheirholders, and
particularly those who owu the stuck, are satisfied with the plan
of reorganization as at presert oullined aud published. The
advance of tho stock in the face of an announcement that a ten
per cent, assessment will be put upon it, clearly shows that Ihere
are people who have great faith iu the future oti the system,
even if these people are ideutified with the underwriting syndi¬
cate. Syndicates, like individuals, only put out their money in
the expectation that it will return with sorauthiug added in the
way of profit. In thisin.';tancc the confidence must be great and
well founded when they will pay $1,600 for 100 shares of the
new coramon stock and ten sbares of the new preferred stock.
We may now take it for granted that this is what they will get
for their $1,600.
So far the plan as announced is imperfect iu many particulars.
It is reported, with a conHdeuce in such quarters that it almost
amounts to an official announcement, that $25,000,000 firstlien
4 per cent bonds are to be authorized aud issued at the rate of
not more than $3,000,000 to $5,000,000 per annum for future
equipment and improvement requirements; $150,000,000 of
new general 4's are to be issued, $99,000,000 for old 4's, at the
rate of 75 per cent of the latter ; $51,000,000 new income 4'b
to be issued to compensate old 4's for loss of principal, aud in
satisfaction of accrued interest at the rate of 40 per ceut of old
4'8; $110,000,000 new preferred to be used, $96,000,000 to
take up and adjust assessment aud interest of old A aud B
bonds and $10,000,000 to be given for an assessmeut of $10 per
share ou the outstanding common stock, which is also to receive
new common face for face. The assessments on common stock
and A and B bonds will realize $13,600,000, with whieh
presumably the floating debt and other claims, estimated to be
in the neighborhood of $12,000,000, will be disposed of, leav¬
ing net earnings uuembarrassed by any charges on those old
accounts, and the new company with a satisfactory workiug
balance nf cash to begin operations with. So far the announce¬
ment concerns the Atchison proper only, aud no indication ia
giveu of what arrangements will be made to retain the ,St. Louis
& San Francisco, Atlantic & Pacific aud Colorado Midland in
the system. Presumably there are $50,000,000 of new genei'al
4's and $4,000,000 of uew preferred stock with which to cany
on these negotiations, less certain amounts reserved to take up
funded uotes, etc. Another poiut which remains in doubt is
what disposition is to be made of the uet earnings which have
been made by the receivers and amounting to betweeia $6,000,-
000 and $7,000,000. If the surplus after payment of taxes,
rentals, aud interest ou the funded notes, etc., is put iuto the
property they ought to turn over to the new company a road in
first-class conditiou, both as regards roadbed and equipment.
Light will doubtless be thrown on this point flhen the report of
the receivers appears. They have been in office now about
fifteen months, and a statement of the working of their charge
for at least the first twelve would appear to be about due.
CriUcisms made on tho plau have been contined to tbe change
in the status of the general i's and the total amouut of securi¬
ties it is proposed to issue. The first is a very hard case. These
bonds were purchased in the belieE that they were investment
bonds having ample security for priucipal in the property lien
and for iuterest in the margiu of net earnings over and above
their requirements. Mr. Stephen Little showed how the buyers
had been deceived. The Reorganization Committee were, of
course, only justified in accepting the hard facts and necessities
of the system in preparing their plau. The volume of securi¬
ties it is proposed to issue is calculated to meet the common ob¬
jection of security holders to auy cutting down of tbe face value
of their holdings, and it is dryly stated by oue of the committee
that aplanthat didnot meet the approval of security holders
would not be of much service. If there be au excess of pro¬
posed capitalization such excess carries uo fixed charge, and
therefore will uot menace the stability of the new company.
The chief objection to such streams of stocks and bonds is the
greater difficulty they present to the maintenance of values in
times of depression thau issues of moderate proportions. It
may be taken for granted, too, that whenever the time comes,
if it doea come, when dividends can be paid on the preferi'ed
stock that the total market value of $50,000,000 of stock pay¬
ing two per cent would be greater than $100,000,000 of stock
payinar one per cent, for the reason that a condition that might