The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-03-03
IN and OUT or VAIL STREET

fer stock gambling to steady legitimate work.
they would be- we'll enough but they affect tho
outside public and brighten away solid invest
ors. Men like JAY Gould. c. ]. Osborne. and
their associates seem to forget that every ono OF
their periodical bear raids shuts out of tho
street number NJ timid capitalists who would
otherwise have largely contributed to specula-
tive operations. The more frequently they re-
peat these reckless bnshi-bazouk forays, tho
sooner will they reduce Wall street
to mere gambling den. in which
a dozen wealthy spectators will struggle
to ruin ono another What Is quiet.
unsophistcated outsider to think. when he secs
solid investment stocks. which he bought but
two weeks ago on what he considered the best
possible recommendation. fall from five TO ten
per cent in two days. and without the shadow
OF reason being given for IN Steady dividend
paying securities like New York Central. Rock
Island. Northwestern preferred. Rensselaer, and
Saratoga. Morris and Essex. Illinois Central.
and so many others. paying from six 10 eight
per cent. are knocked down several points.
while such wild cnts as Kansas and Texas. Kan
sas Pacific. or Pacific Mail remain steady. Tho
outsider will naturally think that he has been
enticed into these investments merely to be
robbed and that the sooner he gets out Of them
the better will II be- for him. The bashi ba-
zouks have made n few thousands OF dollars
out OF this unlucky outsider. but the legitimate
commission broker has lost forever a customer.
and the stock business OF the country an in
weston.
A particularly mean trick Of the kind has Just
been PLAYED in tho Rensselaer, and Saratoga
stock. II was selling ut abont 1903. when the
point was given that the security being an per
cent. ono guaranteed by tho Delaware and
Hudson Canal Company 1t had been resolved
to take II up and put II much higher People
began to buy the stock and IL went up imme-
diately to 1O7 But by the end OF last week 1t
dropped 10 per cent, and the greater number
Of the certificates delivered camo out in the
name Of W. II. Vanderbilt. Now that the Great
Untaxed has saddlcd his holdings upon the
public. II appears that the New York Central
thinks Of constructing n branch OF its own to
Saratoga. This WILL OF course. put the Rens-
selaer stock some 10 or 20 points lower still.
That last weeks fall in the market had no
legitimate cause is evident from moro consid-
erations than one. majority Of the roads are
doing steadily increasing business at n steadi-
ly decreasing rate Of working expenses. Money
is cheaper than for many years past, and the
general confidence in the revival of business
stronger than II has been since 1873.
A new proof OF the abundance Of surplus OF
money seeking investment is furnished by the
new loan Of the Province Of Quebec. which the
agents Of the Bank OF Montreal are placing
upon this market For the first time. the
United States assume the part Of lender in
stead Of that Of a borrower. A nation that takes
up so readily its home loans at four per cent
and begins TO pick up foreign loans ut Eve
ought certainly TO keep ut or above par its rail-
road securities which pay with reasonable GER
tainty seven per cent
Last weeks stampede has been interpreted
in Ono ~ the tbOoriag that n
party Of adventurous spectators started out
for Mr. ]. II. Keene's money. But they don't
seem TO have got much OF IT. They have sue
cccded in making a break Of ten per cent in
New Jersey Central. but it turned out that Mr..
kcenc had none Of 1t on hand when the smash
occurred. They broke Delaware and Lacka-
wanna. OF which he is supposed 10 hold good
deal; but lie is said 10 have given them all tho
cash stock they wanted. and TO have taken no
all the sixty days sellers options they offered
at n considerable reduced price. or his Erie he
did not sell share. and the stock could not be
put down moro than ono per cent. notwth-
standing tho Generalization Of the market.
The most plausible explanation OF the break
Is that Jay Gould. having iust been liberated
from his pcrilous short contracts went for
his liberators. The INSCRIPTIONS and de-
structive nature Of the man will never yield to
any consideration 81 rectitule or gratitude.
lIo will crush everything until he Is crushed
himself The members Of the syndicate who
took UP his Union Pacific and gave him the
cash and the Northwestern stocks hc wanted.
ought 10 have known this. II they have lost any
money by his new raid. II serves them right.
They ought 10 hnye boon Intelligent enough not
TO let him out Of the trap he was in two weeks
ago.
But IN Is the wind thnt does not blow good to
somebody There are not few mon who have
boon predicting for some timo past break of
this kind. and who are now proud 10 see that
they were not mistaken. Rufus Hatch. for iu-
stance, looks iuhilant For many weeks past he
has kept out u the stock market and "on'on-
tratcd all his attention on grain and provisions.
Over and over again have 7 heard him repeat %
late t. his friends and customers: "Gentlo-
men. either railroad stocks are too high or tr1
products OF the country are too low. You Gun
not expect to mako money by transporting
things which are selling at q loss 10 tho pro-
durer"
Tho last fortnight scoms 70 have proved the
| correctness oi his views. Stocks hayo Fono
down. whiic provisions and grain have gono
NJ. This is probably what n4alo Mr.. Hatch
look So contcntrd as IA stood. az the close ol
Saturdays stampede. leaning against tho rail-
ing ~ the area down which jay Gould was once
urccipita;ed.
"Itold YOU $50 MI nlons, Gcnucmon.' ho said
10 q party Of scared bulls. You have all made
the mistake o; huling stocks before hull
movement In grain and provisions had begun.
Now IS the time 10 begin. Wheat Is already
fifteen cents a hushel higher than it sold Ia NJ
vember and twin go higher still-to sl1j or
;l4o. Lard will sell at nine to tom cents
pound The rest 81 the list will moye up I'm
prQporiion. The farmer and tho doaior will