New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-09-17
IS Co.'s s11 4A9 1913 $40 SCI. 43i Decs1os1,9o9 945
ACTIVE STOCK MARKETS.


plosionr(?l 1t would have done so last week week
had there been any bullT market to end IN
questionably if stocks had been held by lspecu-
"sssd mh IN seo"r sone Which R e
borrowed money, and i the Street had been luli
of lambs" the S.. Paul surprise wculd have ,hDt
would have "cured the hair of sensational
writer's None Of these conditions existed anu
therefore while the decline in the prices OF 1t.
Paul stocks has been heavy. the general market
has suffered no more than it has before in twenty
other previous bear raids. The fact that inc
St. Paul raid more sliltully planned ana
moro brilliantly executed than had been the petty
affairs of the lieutenants in the speculation only
furnishes additional and conclusive evidence OF the
strength in the market which has carried prices up
without furry or the excitement Oh DUH
campaign. s.u ~.
Until Thursday the market ruled as dull as
usual, the dealings were void OF specualVc
character and the general tendency was toward q
general improvement IN prices, ~ was . on
Wednesday afternoon that the directors OF the
Chicago, Milwaukee and ST. Paul Railway Com
many met to discuss and TO determine upon the
question of dividends for the six months ended
June 80. and also to decide to what extent the
owners Of the property should be informed Oh Ine
methods and character of its management. Not
till 80 D. m was the decision arrived at 1t
then was announced that there was no dividend on
the common stock and that that upon the pre-
ferred was cut down l per cent to IL per cent,
or at the rate of per cent per annum Every
one was expecting reduction in the rate upon the
common stock and probably no disappointment
a mou'" its entire passage. A reduction
on the preferred was expected b.. by G none who
were not in the secrets OF the airecu on
there would be no dividends. and what Mr..
Planzinton knew in March, probably Mr.. Armour
postivc terms to The Chicago Herald that
| there would be no reductions in The DIVIDENDS
and no securities sold this year. Probably the
at this time would have been regarded as "a
| conservative act on the part of the management
| and one that would have impaired such confidence
that little effect would have been lrit IN Inc
| knew that all the Western lines had been com
| PEELED to suffer in their gross and net earnings
| because of the policy pursued by the burlington
and Quincy management during the last twelve
| months 1t was not the decision with regard
TO dividends, but the statement when the man ma
agcment issued which created distrust IN that
! company and furnished 10 the bears the am
munition with which TO knock the value of both
the common and preferred stocks 10 per cent
| in three days, and permitted them TO attempt
| the decentralization Of the whole market
WHAT THE STATEMENT INDICATED.
| The statement showed an increase in operating
| expenses for the six months nearly double the
amount of loss in gross earnings. Inc TWO 10
gether making loss IN net earnings ing OF ordl,-
more than 80 per cent of six months first charges
| The attempt to excuse such a statement by re-
ferring to that OF the Buringt1n ana QUINCY
| PAIL Company has suffered from the
| action of the Burlington ana Quincy
| is reflected in its loss in gross eacnings-SG3o,382
| H. unlike the Burlington and Quincy has not
bocn compelled to maintain an army OF deiecI' we,
! ut an enormous cost Neither has IL, IKE thc
| Chicago and Northwestern, been cXrndIng large
sums of money for improvements Inc North
western Company did that in the last SIX months
of its fiscal year ended May 81, but not 10 an
| extent that encroachcd upon Its usual dividends
! the Northwestern Company carried forward al
| ter the payment Of its usual dividends 81 ,3o9o29,
exclusive of the proceeds from us lana I safes
hA a
The Northwestern Company for june, the nrs1
month of the company's new flscai year, earned
net s759,020, a decline from 1887 oil only
s52,5OS So the St Paul finds no parallel III
| the statements of the Northwestern Company.
Although the directors of the 81 PauI met on
| September . they furnished to ITS owners no
| information concerning the c0mpanys business
during July and August-nothlns suPpiemeh,airiy
| to tho period ended June 80. rs before saiu'
the prices of the companys stocks declined De,
! tween Wednesday night and saturday noon "
| per cent with transactions in the common STOCK
aggrcgating 305,l00 shares. or course, a very
| large proportion Of this business was saies anu
| down to make purchases on the decline ana
| then to throw the stock back upon the market,
| forcing further decline In the meanuilic,
| London, after some carly sales THURSDAY morning,
| was almost a continuous purchaser. The net OF
| such transactions for the three days PROBABLY
was foreign buying TO an aggregate eXceedlng
| $4,000 shares. There were strong Indications
that at least two Of the company directors
were holding their hats for both classes
of the. stocks TO drop into them as
eager sellers OF either long or short contracts
| forced the prices down. The impression became
general before the close Of the week among the
small traders who are honest in their convictions,
that the sale of 90 shares of ST. Paul the
| equivalent Of receiving the deeds of brownstonc
house on Murray Hill, and that when home could
! be made SO easily, whole block would be more
4 desirable acquisition. To what extent this thing
may be carried with ST Paul. il would be unsafe
| TO predict. All persons admit that the manage
| nent has reduced the stocks to purely gambling
| character But il may be well 10 remember that
it easily restore them TO public confidence.
| sudden announcement OF settlement be-
| tween all the Western railroads accompanied by
| glowing statistics to show what tremendous
! advantage in the immense tonnage in sight such
| companics. would Instantly create an unhealthy
buoyancy out OF the present depression. Such IN
| event is not only possible but II Is probable.
| haaorus tixed of The recrless nnicY of the last