Telegram-herald., 1891-10-05
GOULD'S LAST STROKE
Henry Cie~s Thinks It Was in
the Interest Of Safety.
BORROWING MONEY TO PlY PROFITS
IL Not oesd Fiuaneesring and That L.
what the Missouri Paeine DID
Possibilities of Tight asAsy
Lesseseas

NEW foRz, Oct. s.-Ths speculative
situation shows more uncertainty than
two weeks ago. Two causes are respon-
sibie for this; frat. the rest and reac-
lion which were necessary after . rise
Of 8 to 20 points within . tew short
weeks; and, next, the developments
concerning Missouri Pacific ana Union
Pacific. which have brought down a
storm of indignation upon the heads of
directorA All this abuse Was no doubt
greatly intensified by the fact that pub
lie sentiment WAS largely in favor Of q
further rise IN values; and the check
impaired by the break IN Missouri
Pacific caused more irritation than
would have been the case had the same
event happened in ordldary times
Much of this criticism was misplaced,
because Mr.. Gould has certainly taken
a much less active part ID specu-
latlve operations than the ''street" has
supposed. HIS condition of heslth, as
shown by recent apparent authentic
reports. absolutely preciudes that sort
Of vigorous activity. Personalities
aside. however, passing Missouri Pacific
dividend. Al a time when nearly all
other railroads are steadily making
larger profits, only emphasizes the ut
ter folly OF paving dividends that are
unearned. This road had failed TO
earn lie foil dividend for over year.
but paid them out of borrowed funds;
presumably of course for the purpose
of improving the market for the stock
among those least informed, but which
eventually frightened out such holders
hy suddenly exposing the secret wien
least expected.
The Pace Too Rapid.
The method of paying dividends not
earned. If not illegltlInate before the
law, is Ger ainly most reprehensible
from q moral point of view; besides
simply creating a deep distrusi of prop
critics under such control, winch event
ually acts most injuriousIv upon the
management itself. Nevertheless, these
tactics are MT an unmixed evil. They
not only have brought out in strong
contrast the differences IN such corpo-
rate management, as reflected in the
comparative fluctuations of other
stocks. but they have also gwen the
market the test IL needed in
checking the unhealthy symptoms
of bull fever which were only too
plainly developing. The pace had be-
come TOO rapid. and only promised ex-
haustlon and collapse before the race
was run. As result of the present
reaction, inexperienced operators.
intoxicated with success, have had
time to sober up. The less ventursone
buyers, always the large majority, viii
secure an opportunity TO participate in
the rise 10 come; while the leaders Of
speculation will secure time TO concen-
tfate forces and gain new power from
increased following which \ moderate
decline will attract. Recognition Of
these facts has already temporarily d.
vided the bull forces; 40 that, inten-
tlonally or otherwise, recent events
will in the end strengthen the bull
moveme I.
Gold Coming Our Way.
Gold is coming our way with uuex-
pected freedom. This tends TO lessen
the possibilities Of very tight money,
which has been a question of doubt TO
bulls Of the prudent sort. The other
view of this gold movement is that il
causes 6rmer money abroad. where
stocks have been carried on American
account, and discoursges speculation;
TO that extent depriving the market OF
important foreign support. Still, the
immediate course ef the market how
ever seems now more promising again
on this side for the buli side as re-
action from the recent depression. For
the next few days we look for an active
market, with good opportunities for
traders