St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-11-16
Fears Felt at the Probable Result Of the
Recent Bull Movement of Wild
Cat Stocks.
Any Reasonably Safe Railroad Security
Paying Five Per Cent. is Still
Fairly Worth Par.
Mr.. Vanderbilt Said to Speculate Not
wfthstand1ng His Wfthdrs al
from Wall Street. -
The Rise in Wheat on Account of War
Rumors Believed to be
Unwarranted.
From Wall Street.
Special to the Globe.


New YORK, Nov. 15.-The Suns SIN
and out of Wall street" article tomorrow
will say: The Wall street week closed with
an uneasy feeling, both in regard to the yet
uncertain issue of trunk line negotiations
and evident disposition of the banks to re-
strict their loans upon securities which are
not likely to find ready market in stringent
times. There is no use remaining blind to
fact that the bull craze has started a move
ment of considerable magnitude in wild
cat securities, and although conservatives
and solid brokerage firms refuse to carry
stocks of this description there are plenty
Of speculative houses which will buy any
thing for a customer as long as they can
make their commissions and their 6 per
cent. carrying charges. This is the
, dangerous point of the market,
for moment might come when
lots OF trash which has of late doubled and
even trebled the price at which it was sell
ing some two or three months ago, will not
be able to find any market at all The
general condition of business is improving
so much In this country that there does not
seem to be the slightest danger of any con-
siderable decline in prices of good securi-
ties, providing, of course, that the corpora
ton will take care to put at least toler-
ably honest men in their boards of directors.
But the spread of wildcat securities through
out the contingent of impecunious speculat-
orS is very dangerous feature of the mar
ket and one liable at any time to produce
a small-sized panic.
THE SUDDEN DROP
in price of Erie common stock on S%urday
gave fair warning to both bank directors
and brokers' If stock like that which has
Low r1-oEi 7
New York can drop some two or
three points in about half an hour, what
collapse may be apprehended in the
stocks of minor corporations which nobody
knows anything about, and which are dab
bled in on the principle upon which wo-
man of gambling instinct puts So in
French pool at the horse races upon tip
derived from a conversation which she over
heard between a stable-boy and the
gate-keeper of the track. There is not the
slightest danger for bona fide investors and
people with ample margins in buying diyi-
dend-paying stocks. At the present low
rate of money all over the world any reason
ably safe railroad security, paying 3 per
cent. is fairly worth par. There is conse-
quently no risk whatever for any moneyed
man in buying either stocks or bonds of
corporations OF which he knows something
hearsay as to their merits in future is much
more dangerous than it ever has been before.
The free use which has lately been made on
W. III. Vanderbilt's name is by itself alone
a very alarming feature. 1t is not long
since Mr.. Vanderbilt declared that he had
NO INTEREST IN THE WORK,
that he did not propose to have any, and
that he was retiring even from active rail-
road management 1t became known al
the same time that he sternly prohibited his
speculative sons from indulging in
any stock gambling, under threat
of withdrawing their yearly allowance
To-day Mr.. Vanderbilt and the so-called
Vanderbilt party, which must naturally in
clude some of his relatives, are reported to
be the biggest spectators in Wall street.
Quite recently Wall street gossip attributed
to him the purchase of controlling
Western Union and in the Manhattan.
A great deal was said against Armours
telegraphing and sending lots of sugges-
lions about ST. Paul to interested investors,
but it must be acknowledged that every bit
of his information and predictions have
proved so faa to be correct and that to the
outsider it is certainly better to have toe
much information than the too little which
he has about Mr.. Vanderbilts securities.
THE RISE IN THE GRAIN MARKETCl
was due to rumors of war which were so
plentifully cabled over from Europe. Few
of our grain spectators seem to be aware
of the fact that the countries which have
adopted this beligerent attitude never use
our wheat, and that, therefore, their war
like preparations can in no way affect our
market for cereals. For this reason, if for
no other, the advance in price of wheat was
utterly unWarrautablp