New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-10-09
Enantial.
The Financial World.

I In last Monday To turn the market and start II
| on the IN tack again. No one was in a better
! position TO do it, If the thing could be done by
| any one interest singly. The Flower following
/ Is large. there Is the prestige of recent sue
/ cesses attaching 10 his house, and the Governor
/ Is not involved in any Of the individual con-
| ficts which have disturbed the market. There
| was the best chance OF success, therefore,; but
the effort seems to have failed. The market
was almost lifeless yesterday. and prices gener-
ally show little Improvement over a week
ago, except In Isolated instances Perhaps one
cause Of the lack OF success was that when
Brooklyn Traction. Peoples Gas, Rock Island
and Atchison preferred were advanced. It seemed
to the average trader that these stocks were
already high enough to make further advance
In them short lived Not much following was
obtained apparently. as the trading remained
concentrated n a few stocks and would not
broaden OUT and at the close Of business yester-
day, when such advances had been made
earlier in the week were either wholly or par
TALLY lost there bearish feeling prevalent.
When effort to bull the market has failed II
usually leaves behind it more bearish impress
sion than existed before.
Tobacco gave place early In the week TO Sugar,
as the feature Of speculation among the indus
trials: and despite the fact that every day the
stock has been loaning at a premium. It has
fallen in price. because the reports from lower
Wall Street. where the sugar market is, have
shown that the war between the American Com
pany and its new rivals is on in earnest. The
price Of the refined product is down to cost Of
production on what may he called posted rates,
while people in the trade say that It can he
bought for less with very little difficulty The
situation is one which in the railroad world.
cd no 70 hon he
Shore road built a rival to the New
York Central. The road being once built could
not be got rid Of. The Central cut rates so that
the other concern could not earn anything. and
finally absorbed It; but the fight brought the
Centrars dividends down from 10 per cent:
and the West Shore has been a milestone on the
Centrals neck ever since.
In the sugar fight we have new refneres built.
at cost Of several millions. which being built
must stay. and cannot be got rid Of. Their pro-
ductive capacity Is large enough to seriously
menace the market for the American Companys
product. Before these refneries are fairly
In operation, the market price OF refined sugar
is cut down TO cost OF production: and the com.
pany has out notice that II will deliver
sugar at the price quoted on day OF delivery
which foreshadows further reductions what
is to be the outcome? Mr. Vanderbilt said OF
point Of exhaustion" and It did very nearly go
there Is this sugar trade fight to go to the
point of exhaustion?
Mr.. Havemeyer has corporation money to
draw on The Arbuckes and Doschers have
only their own bank accounts; which however.
are large. Now the problem for consideration Is
this: to fight the thing to finish, refined sugar
must be put on the market at loss TO the re-
finers there Is practically no fight at ALL
Will the American Company. then. burn the
candle at both ends while this fight continues.
by paying the losses its output from its &C
cumula ted surplus. whatever the amount Of that,
may be: and at the same time, further depete
that surplus by drawing on It for dvidends'
VIII Mr.. Havemeyer make the double drain? II
this be done how long Will the surplus last. and
what will be the position of the company when
II Is exhausted?
1t may be said that Havemeyer Will beat the
other fellows and buy in their refneres at his
own price Very true That Is what Mr. Van
derbilt said Of the West Shore; but we know
what II cost to buy in the West Shore at the
price 1t was finally bought and what sort OF a
bargain 1t proved 10 be. Who can tell, Mr..
Havemeyer or anybody else. what II VIII cost
to beat the other fellows and buy them In? And
when they bought in. are these properties TO
be the same dead weight on the American Com
pany that the West Shore proved 10 be on the
Central? True the consumption OF sugar in
creases annually: but not SO fast as rehneries
can be built. Railroad traffic increases in VOL
ume yearly. but it has not increased fast enough
to restore the per cent dividends the Central
paid before the West Shore was built.
1t Is suggested that the American Company
and it's new rivals will agree and divide the
trade That is another way of saying half loaf
10 hafto han
not large enough TO give satisfactory pronts to
the new renneres and full dividends to the
American Company.
Any way 1t is looked at the situation presents
a problem very difficult Of solution; and the
announcement OF market rates for renned sugar
at cost or less than cost Of production. indicates
what may be expected. The public. however Is
slow to believe. In the Central-West Shore
fight, 1t was not until the Central began 10 re-
duce dividends that the public really recognized
what was involved in the building OF the per-
manent structure across the river.
In respect to the railroads, the market was
adversely affected by considerable selling OF the
Northern Pacifics. the common stock especially;
and It became rumored about the Street that
there had been a disagreement between Mr.. Hill
and Mr.. Morgan These rumors proved to De
true. II may he stated that differences Of opin-
ion have developed on matters OF policy between
these two gentlemen who are both men 81 very
positive minds. II these differences went so far
as to cause an actual outbreak OF hostintes. 30
that the Grea, Northern system and the North
ern Pacific system should be arrayed against
each other. the consequences would be very seri'
GUS But the magnitude Of the interests IN
volved the fast the injury each could do inc
other would be great must be taken az az
surance that present differences Of opinion VIII
be reconciled. 1t Is n question for diplomacy
ard there some excellent diplomats inter-
ested. Only the other day. what threatened 10
be a serious rupture between the Northern Pa