New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-18
"BIG NIPPER" BOOMING.
NORTHERN PACIFIC GOES UPWARD.
a RISE OF OVER FOUR PER CENT-PLAN TO
FUND THE FLOATING DEBT.

a RISE OF OVER FOUR PER CENT-PLAN TO
FUND TIE FLOATING DEBT.
There was almost "bull' carnival at the Stock
Exchange yesterday. and the bears were driven TO
cover an extensive line OF "short" contracts. The
easier rates for money encouraged the "bhll chques
70 renew aggression. and the stock market enjoyed
the first substantial rally II has had since the acute
depression caused by the collapse of the Philadelphia
and Reading Railroad The demand appeared 10 come
almost entirely from the short interest," and after the
hour for delivering stocks-215 p m-the advance
was checked and prices reacted generally. Tie DIG
advance Northern Pacific preferred exerted an IN
portant influence upon the speculative temper while
the late rccessions we're due partly TO revival OF
unfavorable iumOrs In connection with Tie coal prop
critics. But the only net losses shown In the active
list at the close In Erie and Philadelphia ana
Reading The industrial stocks were materially
higher, with American Sugar the leader. ana the
principal gains In the railway department that cx
ceeded per cent we're in Northern Pacific, Missouri
Pacific and 81. Paul.
The most active railway stock was Northern
Pacific preferred In which the transactions announced
to nearly $4,000 shares considerably more than one
tenth OF the days entire business The price steadily
hardened from 40 lisa 40 at the opening until IL
reached A. in the afternoon, when the Z" shorts De-
came pancky and by their purchases Carried the
quotation 10 IA, gain Of more than per cent from
the lowest point touched In the recent Reading panic
From that point. after the delivery hour the price
run down rapidly, ending at A: 1-S, net gain Tor
the day Of 3.S per cent This sharp Tacuoh
helped to unsetle the general list. Part Of the ad
vance In Northern Pacific resulted from the Closing
Of the company's transfer books preparatory TO me
special meeting Of stockholders to be held on Aprii
90. Tho advocates and opponents alike OF the pro-
posed sale Of the st. Paul and Northern Pacific stock
held In the treasury of the Northern Pacific nave been
interested in securing stock Of the latter company
prior TO the closing of the transfer books with the
stock bought registered In their names and trans
fers impossible until after The April meeting holders
who are Interested in the contest over the sale are
at liberty TO sell their stock without losing Its voting
power at the meeting.
Tho advance, however. was credited in the main
10 the announcement that progress had been made In
negotiations looking toward long time funding OF
the floating debt Of Northern Pacific. Confident rumors
also circulated to the effect that Henry Wizard
would induced to retire from the chalrmansmp Oh
the board of directors Of the company In fact II Is
asserted by some outside interests that the fundhs
Of the floating debt would be conditioned upon Mr.
Wizards resignation. Mr.. Willard is still at Ashevie.
n c.. but he Is expected to be here In time 10 at
tend the meeting of the Northern Pacific directors next
Tuesday to discuss floating debt matters.
oAcers of the Northern Pacific Company declined 10
make any direct statement regarding the situation.
nut IL was semofcialy stated that the directors had
been discussing propositions for a funding OF the
floating debt which. II carried out would 0bviae the
need for parting with the st. Paul and Northern
Pacific asset. Nothing definite has been arranged but
the plan under consideration is the consolidation OF
existing loans and issue OF collateral trust notes
similar to those Of the Union Pacific, secured by the
depesit of securities already pledged loans but In
Guiding In addition the st. Paul and Northern Pdchc
stock held, the express business of the company ana
oil ether assets which may be available. The notes
viii not be issued. probably. except on five years
time the company, Of to have the privilege OF
fact nan
Assets. Should the plan 90 through, 1t will doubtless
also provide for the raising of 100000 or 1000
600 new money needed in the operation OF The roa1
Wall Street bears make extravagan charges as 10
the amount Of Northern Pacifc's floating debt, but
the officers OF the company declare that it Is Only
about s9OOO,OOO. Accepting these figures. the pro
posed collateral trust loan would probably be 49,,
100000 in amount.
II Is not vet clear that the execution Of this scheme
can be effected without difficulty. 1t Is not certain
that the present creditors OF the company VIII sur
render their collateral security on specific loans ana
accept an equal standing with new lenders OF money
under general collateral trust. Nor could 1t be
sscertaned Yesterday whether the made with
speyer d Co.. under which the directors issued their
call for meeting Of stockholders TO approve OF the
plan for selling the st. Paul and Northern Pacific
treasuy stock would interfere with any funding plans
But should the special meeting OF the stockholders
refuse authority for that sale the question would be
will also have an important bearing upon the rate OF
interest which may be necessary to the proposed
collateral loan and the willingness OF bankers
to advance fresh funds. 1t also Is an interesting
question whether Henry Willard will consent TO his
own retirement which the stockholders committee
is understood to be working for. There are some
wellinfCrmcd bankers who declare that a c0Tpre-
hensve plan for financing the Northern Pacific Com
pany will be impractlcabe unless there Is radical
change Ia the Judgement Of the company.
The Wall Street markets were favorably influenced
yesterday by an easing of in money rates as we'll
Is by the squeeze of The shorts in Northern Pacific
and other stocks. Gail loans at the STOCK Exchange
fell TO per cent. and while most OF The business
done at that figure the late offerings OF funds
carried the quotation down 10 per cent a favorable
bank statement for to-day was predicted by many
gency Is not Considered TO be unmxed good. With
The lower rates for money the sterling exchange
market promptly advanced l4Wl-2 cent TO the :.
The demand for exchange has recently been repressed
the ale OF bills and diminished the withdrawal Of
foreign capital. Should the money market continue
to rule easier II Is confidently expected In banking
circles that the Austrian Government Will call upon
It's American correspondents for the gold ii has con
tractcd for while there will be demand for com.
"short., The United States Treasury, however Is
decidedly stronger In gold than when the monetary
amounts to about s5,OOo,ooO: At the New York
500 600 gold in exchange for legal tenders. sud
den large withdrawal OF gold for export wJuld
probably furnish new barrier by tightening the
money market again.
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