The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-07-17


the Direction and Extent of Cur
rent Movements Are Eetter I'm
derstood-Money Abundant in the
Hest-ChicassO Making Loans in
New YOrk-Clesvs' Stock Letter.
NEW YORK, July 16.-Henry Clews'
weekly stock letter says:
The attention OF Wall street continues
to be occupied with the Vanderbilt deals;
the latest feature in which is the reported
cooperation of the Pennsylvania compa-
ny. This has excited the more surprise
because the general supposition has been
that the latter interest would effect a
separate consolidation under its own con-
troll, including probably the Reading. and
some of the other anthracite coal roads
This surprise puts all expectations at sea;
and, While contributing to the underly-
ing strength of the market, has yet a
tendency to postpone operations until the
direction and extent of these important
movements are more fully and certainly
known. What has been already accom-
plished or is in process of arrangement
leaves little room for doubt that large
schemes of railroad utilization are in con-
temptation. Even if the whole extent
of Mr.. Vanderbilts plans have already
been revealed, yet it is hardly supposable
that his precedents will fail to be follow
ed by railroad capitalists in other sec
tions. 1t seems quite possible that these
beginnings may run into a general re-
construction of relations between the
IN, l,o
sections What new features and rela-
tons may be introduced into the working
arrangements between the railroads it is
impossible at present to indicate. That
large economies may be effected through
indications of control, there can be no
doubt and, after such long and costly
competition among the divided interests,
there is reason enough to expect a gen
eral willingness to consider whatever
plans may cOnduce to cheapening man
agement while placing competition I'M
der more effective regulation. There are
not a few indications of a disposition to
place the various kinds of transportation
under joint control. 1t is contended-and
apparently with sound reason-that the
policy most conducive to economy and
harmony is the one that would ally with
the railroad interest ocean steam lines,
lake steamers, river lines and canal
routes. 1t can only be a question of
time, when these now separate and COM
peting agencies of transportation will be
put under joint ownership and manage
ment. Naturally, however, such arrange
ments would Cat first at leasD, be likely
to be introduced in connection with the
larger trunk systems.
The smaller lines, the feeders of the
trunk roads. would present a different
problem, less easily controlled, and
which, viewed in the distance, seems to
suggest a less promising outcome. 1t
remains to be seen how far that class of
roads may be exposed to competition
from automobile carriage. Sufficient has
been already achieved by this new ap-
pliance to place it beyond question that
the automobile is destined to become much
more than a mere passenger vehicle
With further perfecting in some of it's
minor details, it can be made available
for carrying freight in considerable bulk
upon we'll constructed high-roads, with
greater speed and at much less cost
than by either horse power or railroad
1t thus becomes a question of great in
terest whether much of the short-haul
business of the railroads Is not liable to
be diverted from the minor railroads to
this new means of transport. 1t is also
a question under consideration among
engineers whether 1t may not, in many
cases, be found possible to combine the
automobile system with the trolley sys-
tenn with advantage to both methods of
transport. 1t does not seem likely that
these changes would make much head
way except in those parts Of the coun-
try where railroads are scarce and rates
of travel and transport are COMPARE
lively high. But those sections include
a very important proportion of our ag-
~
ton that must soon force itself upon
public attention, as to how far the second
and third rate railroads that now serve
as feeders to the trunk roads are likely
to be affected by this new means of
transportation. Wall street must watch
closely these symptoms that important
changes in the transportation system
of the country are among the possibili-
ties of the near future. The question as
to whether the automobile will become
an important competitor with the small
er railroads has, however, another side
to it-namely, whether the new motor
may not in some measure develop new
industries IN contiguity to those lines
by cheapening connection with them At
present these questions make but little
show on the surface; but they are occu-
plying the earnest attention of engineers
and far-seeing practical capitalists, as
among the foremost transportation prob
lens of the day: and investment inter-
ests must soon begin to recognize their
practical Importance.
The banks and trust companies of the
Western cities are full of money at the
present time. AS an evidence of this,
Chicago has made a considerable num-
Der of time loans during the past week
to Wall street houses on more favorable
terms than obtainable from New York
institutions, which is a most unusual
thing. It simply represents an excess
of money over the business needs of the
western section of the country High
interest rates in New York, as at pres
ent, will certainly continue to bring
funds here and will also put a stop to
further gold shipments to Europe. There
is no Disgusting the fact that the new
collection charges recently inaugurated
by the Bank Clearing House association
of this city have caused the closing of
a large number of deposit accounts which
heretofore have been kept here and
which have been opened elsewhere so as
to save collection charges. There has
been, therefore, a considerable diversion
of funds from this center for that rea-
son. Besides this there have been a num-
Der of millions of actual money recently
RENTED for commercial purposes to our
new possessions, especially Cuba and
Porto Rico, and still more is likely to
follow from time to time.
The present activity in money at the
four great financial centers of the world
New York, London, Paris and Berlin
Is not due to want of confidence and
boarding through dIstrust, but is due to
great confidence all over the world in
business interests and increased com
mercial undertakings, and thereby the