New-York tribune., 1897-10-31
financial.
The Financial World.

"''e"S"" III 'He early part or II, politics filled in
the latter part. and the Cuban question turned
up at occasional intervals. The Union Pacific
affair was the only :yhich really exerted an
apprecable effect on prices. The others were
more or less pretence-good for a room traders
'uctuation OF half or Ave eiehths nor cent 70
there had been anything really serious In the
talk about the menace to property rights in
Henry Georges candidacy. the removal OF that
menace by the sad event of his sudden death
should have been followed by a quick rise IN
prices. There was nothing of the sort. The mar
ket merely stfeled up little, which it's firm
close OF the previous day had indicated it might
do. 1t was firm but dull yesterday: and it Ia
much talked Of that after the election is out OF
the way. the market will be generally better II
is to he hoped /: will. for the commission bus,-
ness has suffered. since the reaction from the
high prices of September. collapse very dis.
tressing 10 those who have to depend on it for
paying their butchers and bakers bills The
daily volume Of trading has dropped to about
one-thrd of what IL was which shrinks the
market 10 professional trading and that means
fluctuations Of prices within very narrow limits
The street had much narrower escape from
a had smash last Monday than is generally sus-
pectad That was the day on which Il was an
nounced from Washington that Attorney Cen
Of the sale of the Union Pacific road to Decem.
her 18th to permit Congress to act on the
matfer-whch meant that no human being could
tell what the outcome might be. or how long
before there would he any outcome. II meant
THAI OF securities. aggregating a,
least SlJO.OOO.OOO. the financing and distribution
% which had been labor Of more than two
years, would become the subject Of Congressional
wrangling and attack 1t meant that the long
labOred plans of Leading financial houses here
and abroad, who had pledged S10OO0000 cash
to carry them out. would be scattered to the
four winds This laborously constructed finan-
cal structure threatened with instant de-
sruction by a single telegram from Washington.
The incident was almost dramatic. Any one with
the slightest faculty Of perception can what
a wholesale selling Of the market and smash OF
prices might have happened. If the Recrganza-
ton Committee. more properly the head Of II,
had for instant lost his nerve. his grasp OF
the situation, il would have happened. The i'm
mediate offer to raise the bid of the COMMITTEES
to the full amount Of the Government claim.
no, alone sufficient 1t was necessary to
employ the larger resources Of the syndicate H.
support the market Had not this been done.
promptly. things would have been lively enough
to make the traders think the Spanish warships
We're coming up the bay. Union Pacific stock
would have dropped ten POINTS instead OF 32:
the securities. deliverable when issued"
would have sunk like lead: the losses and con-
fusion would have had the usual effect Of pre-
cipitating the selling Of everything else.
In the situation created. the Union Pacific
common stakeholder may naturally inquire
Where do I come in?" Well. he is a little worse
off than he was before. In May last. The
Financial World" had something to say in his
behalf. crticsIng the reorganization plan as
unnecessarily harsh on him. In the feicitous
phrase OF member Of the committee. he had
under IT, standing roo m" onlv. He has less of
that now than then. This is not his fight He
is not concerned with the Government getting
more than was expected. his interest is In hav
ing 1t get no more than was originlny conte,n-
plated. What more the Government gets puts
him further back by increasing the charges.
through the issue Of more bonds 10 meet its
claim. He. therefore, scarcely be expected
/ to throw up lis hat over the adroit way the
Government squeezed the syndicate.
Respect for tie Government forbiis one TO
! call IL smart practice and. OF course il was
right for the Government TO get all ii could.
Only, you don't expect an institution like the
l.. :. Government to get what it can in exactly
that sort OF way. IL smacked a trfe too much
OF the cuteness OF Gen Sam. Thomas-who Is
credited in the Street with putting up the job.
The Government offers the road 10 the highest
bidder. Any can bid But the interests in
volved are so vast that in the nature Of things
there could be only one bidder To get together
the amount % money necessary to take over
the property, all the big financial houses which
could be got TO go into such an enterprise at all.
were necessarily united. There other
possible bidder. and never has been. All the
4 otb IN
moonshre. The Government knew this and
knowing it, quietly waited till the last moment
and then informed the Committee that IL would
postpone the sale ami throw the matter into
Congress: that is to say. turn loose the dogs.
10 wonder that Fitzgerald. on his way out 10
Omaha with n fifty million certified check In
his pocket got sick when the telegram reached
him. that the Thomas party jubilantly solo
I. u. by the thousand; that Mr.. Shfs was said
to have collapsed. But the latter called the
b,uT." as 1t expressed in the Street. raised
his hid wlthou. wink eight millions and OF
course the L. s. Government had 10 accept
Tie Union Pacific road will be sold tomorrow.
The Kansas Pacific an integral part OF the
L. T. system. will be sold in December. after
Congress meets Divine Providence may know
What win happen then. but 10 one else. IL IS
sure however that the Kansas Pacific viii not
be bid tor by any one but the I. :. Government
as against :hc Reorganization Committee for II
IL passed into the hands of any set OF individuals
opposed to the owners of the Union Pacihc, not
n pound OF freight would pass over its lines
above the cost OF carrying il until they had con-
sented to sell to the stronger party. Maybe tnat
the Government has some card up its sleeve oy
which /; Will squeeze the syndicate on this as "
did on the other. Attorney General Mckenha
hints that II has
Not a few people are of the opinion that the
market will not get into a thoroughly Stued
condition until this L. =. matter Is permanently
settled. The interests involved are so large 81
many Dig houses are interested. and 50 mucn
money is AT stake. that there can be ~ union
IN the bull side for AGGRESSIVE action. al least