St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-12-21
STOCK PREDICTIONS.
In and Out of Wall Street Looks for
General Advance in Shares After
New Years.
A Brief Elucidation of the Faith That is
in Him-Drop in Texas Pacific
Securities.
An explanation of the Recent Rise In
Kansas DO Texas--A Niger in
the Woodpile.
Gould, Conner and Hoxie Put Their
Shoulders to the Wheel, and
Things Move.
III and CUT of wall Street.

Gn ana cut OIL wall street.
| Special to the Globe.
New YORK, Dec. 20.-The SUMS In and
Out of Wall Street tomorrow will say:
The market remains strong and there are
ample indications that when the settlement
of the years accounts is concluded, and the
dividends and interests due on tine first of
the year are cashed, great deal of money
will come again into Wall street, and prices
of securities will have another advance. 1t
is usually said that Wall street discounts
any prospective improvement in the bust
ness of the country. But this is not ex-
actly the case. What Wall street does is
to put up the price of stocks when it an
ticipates an improvement in railroad re-
ceipts. 1t is easier and safer, for instance,
to buy Changers, coal stocks, or South
western securities if you have reason to
believe that wheat, coal, iron or cotton is
likely to be in demand at adYanc-
ing prices. than to have the stuff
itself. Ii you try the latter you have to pay
storage, Insurance, carrying charges and
lots of other things, but if YOU buy the
stocks representing these interests there IS
nothing to pay but the commission to your
broker. This is the true meaning of Wall
street dscounting anything. The specu-
latOr who has got loose money to invest pre-
fers to
INVEST IT IN SECURITIES
representing certain products or goods
rather than in products or goods themselves.
Thus. unless the active improvement i'll
business sets in, its indications will be
found only in the price of stocks, and it
will remain more a matter of hope than ac-
tuality. One of the features OF the past
week was the heavy drop in the Texas Pa
citic securities and the rise in Kan
sas & Texas. The majority of spec
ulators always thought that Texas
Pacific and Kansas 81 Texas were
bound to walk arnl-in-arm. But the weeks
showed that they are not birds of feather.
Followers of Gould and Conner always said
a big difference would be shown between
the two properties. 1t must, however, be
remembered that if a decline in Texas Pa
cific was made under the influence of the
Gould party, the advance in Kansas &
Texas was entirely Independent of
it. In fact although Gould is said
to hold a large amount of
Kansas & Texas bonds both he and Con-
ner have the market for the stock taken out
of their hands by HoXie, millionaire cat
tie dealer of Chicago and uncle of the
Hoxie of the Missouri Pacific. whom Gould
put in as one Of the committee over his son
George. 1t is now reported that the recent
visit of Conner to Chicago was to make ar
rangements with the ''Cattle" Hoxie in re-
gard to the
KANSAS & TEXAS.
But Conner is one of those men who
make their arrangements so that no one can
ever find out which way they have been
made. Altogether Kansas & Texas is sure
to go up ultimately, there is no certainty
that it will not go lower before any rise. In
regard to the drop in the Texas Pacific Sc
curities, a very conservative broker, and
one who knows the cotton belt of the
country thoroughly well, said: You
can judge of the want of common sense in
Wall street from the facts connected with
the Texas Pacific receivership, which played
quite an important part in the weeks trans
actions. 1t takes over 80 per cent of it's
receipts to run the road, and several
spent on the road to keep it up to
a decent standard. The bonds of the
Rio Grande division will become
third or fourth mortgage or will have to be
reduced to one-half or perhaps one-third of
their nominal amount. both principal and
| interest. They are selling to-day at about
45, while the land grant bonds, which. be.
sides the chance of eventually sharing in
the profits of the railroad, and have as
basis of value some of the best lands of
Texas, are selling at about SO.
EITHER THE FORMER
are too dear or the latter too cheap. In
deed, in my opinion. the Rios ought to sell
at 35, while the land grant bonds should
slowly and surely appreciate [ should
not be astonshed to see them up
in the sixties as soon as the reorgan-
izaton is effected. 1t is reported
that of the $43, 600, 900 Indebtedness of
the Texas Pacific more than half is held by
Philadelphia capitalists. who are also
happy owners of a large quantity of the
stock, so that New York has practically
little interest in the concern, except in the
general influence which the fluctuations in
this stock may have on the general condi-
ton of the market. Of the seventeen MEM
bers of this company nine are Pennsylvania
men, and they will probably take due care
of themselves