New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-09-18
fiuanriaI.
The Financial World.

one of the earliest 20 start IL, anu from some
! where about 80 had gone up and up until on
/ the 18th Of September 1t touched 1OSA. Then
the purchase Of an opposition company by the
Mcmillan syndicate was sprung on the market,
and the attack began. The Flower people, ag-
gressive bulls then as they are now, were forced
into defensive position. and had to see their
leading stock driven down over 20 points on
them in about three weeks. The forced change
of attitude by this party. and the heavy realiza-
tons by other large holders Of stocks (Mr. Nor
gan unloaded and went to Europe), gave US first
an irregular market and then generally de-
clining one. 1t was such reaction all bull
periods are subject TO; and il is a fact Of specu-
lative history that every summer bull move
ment with scarce d single exception, is brought
to a halt some time in the month Of September
Something always turns up to do it.
Indications are now that this summers hmm
| movement has been brought a halt II is NOT
easy for a market 10 get over such a shock an
the St Paul dividend caused because for one
thing, il is invariably an indication that strong
interests supposed 10 be long Of certain lines Of
stocks have in fact unoaded them. But when
| such a thing occurs II always catches certain
other interests loaded up. and the efforts Of
! these parties to keep the marke, going their
! way gives us that irreguarity which is already
! very apparent in this market.
| The first effects OF the st. Paul shock had ex.
| hausted themselves by Wednesday morning
last. when prices were lowest The recovery
| was SO rapid as to cause the remark that stocks
went up more easily than they went down.
! This is true; true that is OF the rebound which
! follows the first shock a bull market receives.
| But on the rebound. only two or three stocks
got back to the prices quoted for them on the
morning the ST. Paul dividend was declared. 1t
| looks now as If there would be considerable
| irregularity for a while, as there some deals
! on which will have to be carried through il
possible.
There is deal on In Tobacco which will JUS
! tlfy the present and perhaps much higher prices
| for the stock. There is deal on in Sugar
! which may make even yet lower prices for that
! stock The way Tobacco has gone up and
| Sugar down, suggested the remark attributed
| TO Mr.. Clews in one Of his daily speeches) that
"the right hand had put up Tobacco, while the
| left hand had put down Sugar" This had ref
erence to Mr.. Keene. II true, it shows that Mr..
Keene must be ambidexter considering the sue
| cess with which ne has handled both stocks
| There is Rubber common. At present prices
| 1t Is too high II IL is not going to pay diy-
dend; IL It is there is room for large ad.
vance. Now the positive statement is that II
will pay a dividend
Among the railroad stocks. the speculation 10
running most strongly in Northern and Union
| Pacific, and more particularly in the common
stocks. 1t seems to be the scheme Of the North
| ern Pacific combination to devote the current
| fiscal year TO the exploitation Of the common
stock. as they devoted the last to the preferred
stock Having established that on a dividend
basis. they will probably this year devote their
| hot, tha CT
earns a dividend. and will pay one About
which time it will be quoted considerably higher
| than II is now.
The speculation in the common stock OF Union
| Pacific has no basis other than general princi-
| niles so 10 speak The preferred stock will pay
| 8 per cent per annum minimum, and the
| common will have 10 wait on the indefinite
! future for anything after the preferred is Sc
| curely provided for. There Is yet much slow
and expensive work 10 be done on the Union
Pacific line to bring 1t UP to modern require
ments.
The b. & O. reorganization promises 70 be
| phenomenal success. 1t is reported that no
more money VIII be called for from the under
writing syndicate than the small percentage
which has already been called up. The fact
that Mr.. Hill is to be chief power In the man
agement Of the reorganized b. q. company
has had much TO do with the recent rise IN the
stocks This is talked Of as a new thing, but It
IS not The syndicate managers believe in Mr.
Hill as a railroad man, and they have long had
IL in mind TO secure his services Neither Is
there anything In the talk about grand trans
continental line, with the b. & o. as the eastern
division 1t sounds grand. but experience has
shown that grand sound is about all there 70
in that sort Of thing. The company has al
ready for over year been working In close
| connection with Mr. HIS western lines.
What the b. & o. needs, and the lack OF which
| brought IT to bankruptcy is efficient manage
| ment between Chicago and the Atlantic Sea-
| board not more transcontinental connections
| The people who control the property believe
that Mr.. Hill can give 1t this management nus
entry on the task will be OF great interest 20
! other railroad managers. as they VIII nave
| chance to see at close range his much talked Oh
| TRANSFORMATION methods as applied to an east
ern trunk line. He has a great opportunity lo'
the road has been tel ribly mismanaged; and no
will have all the financial backing necessary "
improve the property. Leading members OF 'hs
syndicate say the road will surprise the puonc
with the earning capacity 1t will display "h''
the preferred and common stocks nave hao
rapid advance, the bonds have been slower
Both classes. however. the 3la and the per
cents. VIII get up 10 par III uuc N'''N'
are now quoted between 81 and 30
Yesterdays bank statement, though no.
good one by any means. was regarded as an I'M.
provement on the previous week. Evidence y.
extensive liquidation was the leading feature VI
It. and this was said to be satisfactory. althous"
there was a further loss in the surplus reserve
The money question has naturally been '''
| prominent topic Of the week Ii was the ie"'
OF trouble over money which made certain ia'e0
capitalists recently unload stocks TOT VIM,
there was a ready market. so that they ooN'N
the better take care of those they were carr!"o
which had not so good market we nave ~