Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-08-22
WALL STREET GOSSIP.
A Broker Ictth Poor Opinion OF Mr
Gosslds Methods RelSeoes Hts Mind.
In V Wnrld 10Th I

n. y. NOIlu, A0eu.i
1.-The market is very puzSling," said bro
ker Yesterday who has made fun of the re-
cent attacks of the "bsars," and 1t LOOKS
as if the general class of operators were
waiting for something important to turn up
The activity has for some time halted, not
from any fear that investors and spectators
may have of the price of legitimate stocks
of established earning capacity. like New
York Central, Lake Shore, Rock Island, st.
Paul, Northwest, Burlington d Quincy and
others, but because of the effect OF such
trash az Wabash, which is not really earning
the interest on its bonds, and Is only kept
alive by board manipulation under the con-
timed efforts of Messrs. Gould and Sage,
and which is selling for such ridiculous
prices thst unless these gentlemen are con-
tinualIy sustaining it that particular stock is
likely to break away largely at any moment
and cause slight decline in investment
securities. Therefore, with all the mass of
securities of value to sustain, it is more than
probable that Mr.. Gould will remain 'bull'
till he is able to market them. The earn
ings of good stocks are so large that they
will take care of themselves. and the
scheme, which will soon be unfolded by Mr..
Gould and his co-partners, IS the Missouri
Pacific. The road was recently purchased by
MIR. Gould from G. Il. Garrison for about
600, and it will be offered to con-
fidiue public at 8 capitalization Of 100000
600. Mr.. Gould has evidently the ex-
pectation of being able to sell a por-
ton of this audaciOUs increase OF capital,
represented by a lot of worthless roads which
have been taken into the scheme, and which
will no doubt furnish the necessary excuses
that these gentlemen may be called on to
give for such immense increase to the in
tending purchasers. The business of con-
solidating railroads began when the Kansas
Pacific was acquired for song, and saddled
on to the Union Pacific to the permanent
injury of that property. Despite all the
figures the directors show of increased earn
ings, the completion of the Southern Pacific
railroad, which by January I, 1881, will
more than likely be running through trains
connecting with the Atkinson Topeka,
will hardly induce new people to come in
and relieve these gentkmen of the stock
which they voted to themselves at such low
prices"
Another broker said: 1.-THE intrinsic
strength of to-dsy's market was confined to
the coal stocks, and perhaps there was some
merit IN their advance. It is understood
that at an informal meeting of the managers
of the New York companies an average ad-
vance of twenty five cents ton for Septem-
Der delivery was agreed upon. This would
indicate that the coal combination has per-
feet control of the market, since private ad
vices from Philadelphia intimate
that the Reading company is willing to
sanction an advance, provided the Eastern
hn L 10 hQl
that Receiver Gowen will shortly resign his
position, and Reading was in good demand
on the supposition that Mr.. Gowen, for the
sake of promises which he has made his
friends, would not willingly abandon the
management OF the company until it was in
fair way of being released from
its present financial troubles. The
Delaware and Hudson stock was
especially in good odor, since it was conf
IDENTIFY believed that the affairs of the COM
pany are in better shape than for many
years. Il is reported that up to date the
Delaware and Hudson shows surplus over
and abDve all Indebtedness of over 81 ,000,-
600, and that dividend of three and half
neg cent. will without doubt be paid next
February. All the orders to buy could be
traced to good men, more particularly to
those who are Thoroughly conversant with
the value of the coal properties. Mr.. Keene
is said to have very little interest in the
coal stocks, and the advance has been es
tabiished not through the medium of specu-
iative influence, but is entirely due to well
distributed purchases by prudent investors.
A higher range of prices can be Deepen ded
upon in the Granger securities, as MIR. Keeue
and other large stockholders are determined
to convince the public that they have not
everesiimated the earning capacity of the
st. Paul road"
Another broker, who was complaining
about the gradual decrease in commission
orders, said " Wall street requires sharp
reaction from the high figures to which the
majority of operators have been accustomed
for the past Blk weeks. The tone has been
altogether too languid, and the situation
would be much healthier if the holders of
even the gilt-edged securities would consent
to market some of their profits. It would
do no harm to have moderate decline, all
round, since there would be more scope and
inducenent for outsiders to dip into the
speculative whirlpool. Suppose liquidation
forced decline of per cent. in investment
securities, 10 per cent. in purely speculative
and active stocks, 20 per cent. in trash and
wildcats, and wiplpg out of the faneies !;
business would not suffer in the
least, and that strong, buoyant confidence
which is sadly needed would be re-
stored. decide d tumble would do away
with all the imp leasant stories that are cir
culated from day to day, and even the most
rabid bears would be delighted to buy st.
Paul under eighty and stop harping on the
repeated tales of the roads thirty per cent.
increase of earnings upon fifty per cent. in
crease in mileage On the contrary, if the
market is allowed to gradually creep up
from present prices the good stocks will
necessarily carry the trash, fancies and wild
cats with them, and the inevitable crash will
canse cropping up Of the most extrava-
CANT rumors, and financial panic may
ensue which neither the strength of Wander
bilt nor Gould could stop. I do not wish to
misrepresent the condition of
affairs, for believe that if
all the securities which have not a chance
30 earn dividend in this generation, such
as Wabash common, Erie, Kansas and
Texas, Ohios and many others, were wiped
off the Inst, the remainder of the good paying
stocks would advance 90 70 80 per cent. on
their merits. But the United States are
rapidly drifting into that insane mania for
grasping everything that is called by the
name Of railroad which once paralized Eng
land, SO that similar crisis would not be q
surprise to the best-informed fnanciers of