The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1880-08-26

ings or 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
Mr.. Gould from g. X. Garrison for about
$4,0OO,O00, and it will be offered to con-
fding public at capitalization Of $50, OOO,-
600. Mr.. Gould. has evidently the ex-
pectation of being able to sell por-
ton of this audacious increase of capital,
represented by 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 gentlemen of the stock
which they voted to themselves at such low
prices.' ,.. a.. rG@ su..y
Another broker said: "The intrinsic
strength of to-day'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
magnates set the example. It is believed
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. 1t is reported that up to date the
Delaware and Hudson shows q surplus over
and above all Indebtedness of over 81 ,OOO,-
600, and that dividend of three and half
per 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
.he value of the coal properties. Mr.. Keene
is said to have very little interest in the
coal stocks, and the advance has been es-
sablished not through the medium of specu-
lative 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 Mr.. Keene
and other large stockholders are determined
to convince the public that they have not
eyerestimated the earning capacity Of the
st. Paul road" 49,
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 six 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 q moderate decline, all
round, since there would be more scope and
inducenaent for outsiders to dip into the
speculative whirlpool. Suppose liquidation
forced decline of per cent. in Investment
and active stocks, 20 per cent. in trash and
wildcats, and wip,ng out Of the fancies !;
business would not suffer in the
least, and that strong, buoyant confidence
which is sadly needed would be re-
stored. A decided tumble would do away
with all the imp leasant stories that are cir
oulated 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
cause cropping up of the most extrava-
CANT rumors, and financial panic may
ensue which neither the strength Of Wander
bilt nor Gould could stop. lido not wish to
misrepresent the condition of
affairs, for i believe that if
all the securities which have not chance
to earn dividend in this generation, such
as Wabash common, Erie, Kansas and
Texas, Ohios and many others, were wiped
off the list, the remainder of the good paying
stocks would advance 20 to 50 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 .
surprise to the best-informed fnanciers of
New York. The market at present is
+ciiuued' on all sides. When IN attack is
made ON Wabash, Union Pacific,
Kansas and Texas or, Western Union,
Gould, if it suits his interests, is ready to
thwart it. Keene protects st. Paul, a. do
its directors, and Vanderbilt, Russell Sage
and Charlie Osborn. are prepared to stem
any decline in New York Central OF. North
west. Erie virtually takes care of itself be-
cause as general thing the speculation is
one-sided, since every one INDUCES in the
peoples pet no more than bis or her means
will allow, and the weaker side usually turns
out to be the stronger. Here We have Erie
quotedi in the forties and yet it 10 % stub
born % rock. It refuses 10 budgo IN inch,
although BY force OF comparison with the
dividend properties it ought net 70 seu above
twenty. Mr.. Vanderbilt ID reported to have
written friend within the last few weeks