New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-05-07
.Fnanfial.
The financial World.


out suddenly as a disturbing factor II hurt N.
market badly last Monday and when It an.
peared that It's operation. whatever It's operation
might be. would be at least a year distant m.
market did not rally much-which was sign,a.
cant. Then came a wholly unfounded alarm,
about gold exports; next the gas compani..
fight and yesterday bank statement surpr..
ingly bad; most surprising as money had been
working easy all the week The main movement
OF prices has naturally been downward Much
was heard about bear operators. While there
have been bear operators at work the market
could not have acted as IL has without extensive
liquidation. 1t may be just as well to remember
that bear operators were at work month ago
and were badly worsted 1t was only when
actual liquidation had made some considerable
progress, that operations for the fall could make
any impression 1t is pretty clear that we have
for the moment, been struck with one OF those
receding waves which from time to time check
a rising tide Of speculation
When yesterdays bank statement appeared
showing loss Of over six millions In the sur-
plus reserve and increase Of sixteen millions
in the loans, 1t was unanimously set down to the
account OF the Amalgamated Copper subscrin-
lions. The amount subscribed we are told. was
$500 millions; per cent OF which would be
$40 millions Undoubtedly the City Bank which
received these per cent subscriptions lent out
the money and did it's best to keep the money
market easy. But now comes the business OF
calling In the other % per cent OF the original
SIS millions offered which by the terms OF the
advertisement is payable within ten days after
allotment of the stock. Seventy-one millions
may thus be called for. If the big capitalists
controlling this operation had their affairs 80
arranged that they desired 10 smash the stock
market TO flinders, 1t would only be necessary
to allot the stock promptly and call up the whole
subscription within ten days thereafter There
would be fine time TO pick up securities cheap
for those who were not cleaned out by the OPERA
ton.
We can scarcely imagine however. that these
men are planning any such stroke as that 1t
would be little too extreme. 1t is probable the
subscriptions will be called in instruments The
advertisement says: temporary negotiable re-
ceipts on payment Of sums due on allotment will
be issued" This points to payments spread over
a period Of time during which the receipts will
be available for use In the market the same as
the stock for which they will ultimately be ex-
changed.
Some possibilities. however may be pointed
out We won't call them probabilities Sub
scriptions said TO be over five times the
SIS millions offered and the right is reserved
to reject any subscriptions" Suppose the six
or seven men Of the inner circle should reject
their own subscriptions. The outside public
would then get the stock, and the company
would have the money clean to pay the syndi-
cate for the shares of the various copper COM
panies which the syndicate members have pur-
chased and turned in to the Amalgamated Com
pany. The first stroke then would let out these
gentlemen clear; for OF course they have not
turned in the shares referred to at valuations
which show them loss Being clear, and the
SIS millions Of Amalgamated stock being carried
by the public. if the price should happen TO fan
considerably below par at some time later, they
would be in good position to buy.
This possibility was suggested TO bank man.
with the inquiry added. If he saw anything to
prevent it. Nothing" said he. with smile.
except the personal honor Of these gentlemen"
Another possibility relates to the stocks Of the
companies in which the Amagamated has &C.
auired large interests" Take the Anaconda
company Suppose majority interest has been
purchased by the Amalgamated. II It has, then
the big buyer OF Anaconda shares is already out
Of the market Is the Amalgamated Company
under any obligations 10 care for the minority
stock left In the market? Certainly not. Is it
under any obligations, express implied to
exchange its own shares for Anaconda shares?
Not that any one knows. The Amagamated
Company Is in the same position as for example
the Pennsylvania Railroad Company when Il
buys up majority of the stock OF some connect
ing road. and puts IT in its treasury. II has
usually been a cold day for the minority holders
when this was done. The Lake Shore owns con-
troll Of the Nickel Plate, and minority holders In
that are bitterly complaining OF the treatment
they get Will minority holders in the Ana
conda and other properties controlled by the
Amalgamated have a like experience?
1t may be said that these fanciful sugges-
tions. Possibly; but bear in mind that such an
advertisement as the Amagamated Company
published was never before seen in Wall Street
1t was thought extraordinary thing years
ago when Willard obtained his blind pool SUBJ
scriptons: but he did il among personal friends
who had made money through him. Here on
the contrary, was an invitation TO the public al
large to subscribe SIS millions for the stock OF
company, about which absolutely no informs-
ton was given except a few lines stating that
had acquired large interests in certain copper
properties some named and others unnamed
just that and no more. And when we hnd the
wild talk OF 80 and 40 per cent premium bid for
subscriptions simmer down TO per cent on the
day the subscriptions close: and see the ; per
cent melt down further to | and IL per cent
which was the bid yesterday. any one may De
excused for considering possibilities, although
In dependence upon the personal honor of the
gentlemen referred to-he may not believe them
to be probabilities.
We may clearly enough in the state OF the
stock market. and Of the money market also
that an end is rapidly coming. II IT has not al
ready come. to the hotation of any more indus
trial creations. Those already in the field must
be given chance to show what they can do. De-
| fore another batch can be ioated The man