Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-08-15
WALL STREET GOSSIP .

SQiteezS for the ''NR0TtS' ia NOTWtVcSe
HOtU Mtnnes0tG Crops effect Hdu Stfeef
New York World, Aug. H.
"A persistent effort was made to stop TIT
decline this morning" said disappointed
broker yesterday, land prices for shor
time were marked up with unusual holiness
Then the almost imperceptible unloading
which has been prevalent for the last ter
DAYS began and the market dropped with
alarming rapidity. The leaders first took hold
of those stocks which were unduly depressed
Tuesday afternoon. such as the Hannibal d
St.. Joseph and Northern Pacific properties
but yery few outsiders were induced to par
ticipate in the movement. When the 'bull
pendulum was well under way the old North
west pool began to squeeze the shorts,
and few OF the most timid
covered the sales in the neighborhood of 1O1.
Some of the knowing ones distributed the
pratuitous information that an extra divi-
dend of l per cent. was about to be declared
ON the common stock before the next quar-
terly dividend. so that the preferred stock
might be put on o 10 per cent. basis. The
sereneth of Jersey Central was attributed to
additional purchases by the new pool, and
the price was bid up to 76%s with very few
transactions. In fact, the business was con-
fined to few manipulators who washed the
stock to suit their own purposes, but who
could not get the people to bite at the story
that the Baltimore & Ohio had promised
to enter into intimate relations with the road.
The active brokers engaged in the pool, how
ever, found that the supply OF stock at "a
was greater than their orders to buy would
warrant them in assimilating, and the price
accordingly recededs'
"Has any information $been obtained
about the proposed issue OF bonds by the
st. Paul road?'
"The story is generally credited in Wall
street, but the friends of the stock are
anxious that the details should be kept back,
and SO do not deny or confirm the rumor.
The stock was boosted this morning with
zeal, but az soon as the increase of S65 900
in earnings for the first week in August was
made known, the quotations declined under
heavy pressure to sell. received some
Trustworthy advices from the west to-day,
pointing to q crop in Minnesota not much
larger than that Of 1879. The harvest in
Iowa, southern and central Minnesota has
been secured, and in some sections it is ex-
tremely good, but in the southerly district
the output is unsatisfactory, in spite of
the increased acreage. Harvesting hss
begun this week in northern Mime
sofa, Manitoba and Dakota, and the
early receipts may encourage 8
large fall business. It is understood the
st. Paul and Omaha large earnings have
been drawn from Iowa. Heavy shipments
of corn and -four have been made to Duluth
to take advantage of the cheap lake freights.
By this means the gross earnings have ap-
parently been increased at heavy expense
in rebates and pro rata allowances to other
connecting roads The people of st. Paul
evidently expect remunerative business
this fall, as the new mills will be ready to
grind up the incoming crop by September
10. Still the railroad freights will be low,
and it will require an increased tonnage to
compensate for the additional cost Of labor
in handling the same"
Another broker, who was very nervous
about the situation, said: "The only genu-
inc sustaining powers has been in the Van
derbilt properties, on the superstition that
Mr.. Vanderbilt will do something handsome
for the stockholders of the New York Cen
trail on HE return. The legal advisers of
the road are said TO have predicted that
quarterly dividend of 211 per cent. will be
declared in September, and that the incress-
ed earnings msy also warrant scrip diyi-
dend Of 10 per cent, thus raising the capital
stock to 100000 These lawyers are
accordingly advising their friends to buy
New York Central, Lake Shore, Michigan
Central and Northwest. In Erie more &C.
tivity was noticed, and disappointed holders
were quietly shaken ont of their stock. On
June 30 Erie was quoted at 49, and to-day
it is selling at 424. 10 the mean time
other stocks, notably the Changers, have
advanced and given handsome
returns on speculative purchases. Erie,
on the contrary, has been at standstill, and
it is no wonder that the spectators are snx-
ious to get out as quick as possible. Then
again, the trunk lines are likely to suffer by
the competition by lake and canal. Over
1900 new boats have been built, and each
boat has carrying capacity equal to twenty
three railroad cars. A great many of the
coasting vessels on the lakes have been tied
up with iron ore and lumber contracts.
These contracts have all run out and the ves-
sells will be prepared TO take all the grain
offered at low rates. II is expected that this
will produce cutting of east bound rates,
and now that Mr. Albert Fink has returned
from Europe, it is probable that meeting
of the joint executive committee will be
called to order reduction and meet the de-
mands of Western merchants. This will
materially reduce the earnings Of the trunk
lines, and it is partially the apprehension
of small business Fl, m September / that
that has made Erie Sd weak.
1t ia reported that the Delaware, Lackawan-
ma and Wes ten has done So 90 q bushes
that at the eud Of the 6seal year surplus OF
81, 100000 will be secured. To offset this,
however, large amount of money has been
expended in construction, rolling-stock and
improvements at Port Morris and CORES
ponding amount OF bonds has Deen issued.
Some of the stockholders claim that these
purchases should be hquidated out of net
earnings. On the other hand the majority
of the directors favor declaration of 2per
cent. dividend, which would leave about
100000 on hand next February. Until
these matters of controversy ale settled it
will be very hard for the bulls or bears to
move the stock either way. A movement is
on foot to resume full time at the mines next
month. Russell Sage has been more liberal
lately in issuing privileges, and, although
'bearish' on the general market, does not
think that the Changers will participate in
the general depression consequent upon re-
alizations by the large operators. He has
recently sold large line of 80 day puts on
st. Paul at S5 for ! per standardization.
ho4 nj rafirad Jru,r.sS, - -, Dor oavc &c