New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-09-18
CLOSING PRICES OF CALIFORNIA STOCKS
San Francisco, Sept H. 1883.
P.D. ARMOUR DEFENDS HIMSELF.


The following are extracts from The Tribune
of to-day, all having reference to the Chicago,
Milwaukee and St Paul Railways raid on stock
values:
"Mr Pankinton says he knew last March that
there would be no dividends, and what MT.
Panl5inton knew in March, probably Mr. armour,
positive terms to The Chicago Herald that
there would be no reductions in the dividends
and no securities sold this year.
Every one knew that all the Western lines
had been compelled to suffer in their gross ana
net earnings because of the policy pursued by
the Burlington and Quincy management during
the last twelve months. IL was not the decision
with regard to dividends, but the statement which
the management issued which created dlsrus,
in that company and furnished TO the bears
the ammunition 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 generalization of the whole market"
Although the directors of the st. Paul met on
September IL. they furnished TO its owners no
information concerning the componys business
during July and August-nothing supplementary
to the period ended June 30.'
There strong indications that at least
two of the company's directors were holding their
hats for both classes OF the stocks TO drop into
them as eager sellers of either long or short con-
tracts forced the prices down.
All persons admit that the management has
reduced the stocks to purely gambling character
But it may be we'll to remember that 1t can as
easily restore them to public confidence. sud,
den announcement Of settlement between all
the Western railroads, accompanied by glowing
statistics to show what O tremendous advantage
in the immense tonnage In sight such settle
ment would he to the earnings Of the companies
would instantly create an unhealthy buoyancy
out Of the present depression. Such an event
not r. only possible but It tsp is prGsab Miller
Of the ST. Paul, did not come to New-York TO
ATTEND the meeting because il was more necessary
that he should remain in Chicago to assist in
restoring rates Yesterdays Saturdays Chicago
dispatches seem to indicate that Mr. Miller
manned In Chicago to prevent restoration But
speculation Mr. Miller will find IL as easy to say
yes II on Friday night to say no
At all events, If the present management intends
election they probably win find it necessary TO
do so by ownership and not rely upon the proxies
of other owners
Now, 2. d. Armour, of Chicago, leading d.
rector In the Chicago, Milwaukee and St. Paul
Railway, is entitled to a hearing After o'clock
to-day dispatch from Mr.. Armour to J. w.
Ogden, No. l2O Broadway, was made public. We
print 1t in full:
lation to this st. Paul matter arc unjust and have
absolutely foundation. I have never sold
share Of the stock short in my life nor have /,
in interview otherwise. stated that the company
would pay dividend on It's common stock for
the past six months There IS not a paper in
the land that has not proclaimed that we have not
earned it There is not a man. woman or child,
who could read, that have not known of the bitter
rate war In the whole Western system, but the
all sight of the good crops large tonnage and
prospective earnings The property was never
IN better physical condition, and our tonnage,
present and prospective, very large, and there
need be question about the intrinsic value of
the property No fair-minded person should
criticise its managers for passing dividend which
was not earned. When I returned from Europe
about July !, and bull movement seemed to
prevail in ST. Paul, was charged with the leader
ship of IT, l then denied emphat1cally either
buying or selling share since had returned and
which l now confirm. The property itself is
oil right and as good as have ever said 1t was,
and time will prove it; but this rate war like
fever has had to have its r,in and when over,
which il will be. St Paul will come to the front
and take its position as great property 1t is
capitalized at less amount per mile than any
of the great systems and I cannot believe that
any investor will think less of it because its
managers deemed it wise to pursue the proper and
conservative course which they did in declining to
pay n dividend for the past six months / have
put forth every effort that knsW h hGW sncr and
familiar with the subject will state otherwise and
many Of the rumors and statements attributed to
me absolutely without authority or founda-
tion.n
Seldom has q leading director so promptly come
forward to confirm and sustain our position and
reasoning rs Mr.. Armour has done. AS to
whether or not IN July he did make the statement
credited to him by The Chicago Herald is n
question between that journal and himself But
It is hardly possible to believe that Mr. Armour
WAS Ignorant OF the language crculted 10 him,
when it was copied all over the Union, and was
common talk In Wall Street where Mr.. Armour
has some intimate connections. Already there is
talk Of "our present" and prospective tonnage.
and we are assured that the fever of rate war;
will have its end Yet the director in his off
cial capacity gave no solace to the stockholders
la the shape Of our present" business when the
statement Of June 30 was launched. And fur
Their, IL Chicago reports are true, it is the ST. Paul
Company alone which persists In imitat in .
that fever" OF rate war.
All of this was not part OF to-day's stool,
market Ii may be an important part OF to-mor
rows and Of the following days markets. A,
WIS natural to expect the days business wa.
characterized by fevershness and uncertainty
But feature was prominent and conspicuou,
to the most casual of observers. There was nc
bulling' OF the market, and such resistanc,
as the bears met with in their efforts to fur
thor depress prices came from buyers who or,
satisfied with the position and with prices Tn,
speculation Is all on the bear side To-day
loan market developed large new and an add
tional short" interest
London continued TO be free buyer at ever,
concession, and purchased considerable more ST
Paul stock The indications of buying by som
OF the St Paul directors to-day were more visibl
than on Friday or Saturday The persistence
with which foreign holders of St. Paul refuS
TO sell or scare on 10 per cent drop raises IN
question, whether the present management ca
obtain sufficient stock TO maintain their contro
OF the property. Dcsdte of "bearishn effort