The times., 1901-05-22
PUZZLED BY THE PACIFICS
Wall Streets Interest Centres in
the NOrthern's Control.

The stock Market Continues to BE
Irregular in Tone The Could
shares Rally After Being Under
P=essure-Sugar and Steel Active.
NEW YORK. May 21.-The wall Street
community appears to be sorely perpleX-
ed regarding the status of Union and
Northern Pacific affairs, circumstances
not extraordinary in view of the eXcep-
tional complications which have grown
out of recent developments. 1t is, how
ever, generally accepted as a fact that
what are designated as the Union Pacific
interests have acquired what amounts TO,
under present circumstances, a controll-
ing interest in the Northern Pacific Com
pany.
1t is als1 assumed that the Union Paci-
fic intarcs.s propose to finance their pur-
chases of Northern Pacific stock through
the issues of S60,O00.o00 additional Union
Pacific collateral through these bonds.
Whether the amount realized from these
bonds viii be sufficient to reimburse them
for their purchases of Northern Pacific
stock seems douD,ful, although it is
understood that they acquired their
holdings of both the common and pre-
ferred shares at an average price con-
siderably below par.
1t is also understood that the Union
Pacific bonds to be issued in connection
with the transaction have already virtual
ly been placed and that no underwriting
syndicate will be necessary and that the
payment of the necessary commissions
Will be dispensed with. The attitude of
the other great parties interested in
Northern Pacific. of course, becomes an
exceedingly interesting question
1t is certainly not to be assumed for a
moment that, even if they do not abso-
Jutely control the Northern Pacific prop
erty. they Will forthwith attempt to dis
pose of their present holdings. The final
settlement of this question, than which
no more interesting nor important mat
ter has ever engaged Wall Streets at
tention. promises to be full OF interest
II seemed 20 be the general opinion today,
however. among well informed persons,
that the final upshot of this matter Will
work for good and for stability IN the
railway situation and in the market Tor
securities.
The enormous amaIgamation of rail
way systems under the control OF the
Union Pacific Company has reached
stage where it seems certain thal the
great companies not directly included IN
the fold will at least have participating
and sympathetic interest. The two com
panfes now most directly concerned IN
this respect are the st. Paul ana the
Chicago and Northwestern. The expected
developments in this regard seem to
make a veritable community of inter
ests" among the ans-continental lines
and Of scope hardly deemed possible up
TO the elimination OF the events produc-
ing the Northern Pacific corner. There
was, at all events, a good deal of discus
sion today along these general lines. and
further, a disposition TO regard with great
equanimity the progress OF events in con-
nection with the solution of the mighty
problem on which financial attention has
been focused for the last two weeks. ,
Todays stock market retained some OF !
the irregular tendencies VIII ch charac-
terized yesterdays dealings, but on the |
whole, a much nrmer tendency was ap-
parent The market opened decidedly /
weak. partly in sympathy with the trend /
of prices for American stocks in London, |
,stt chiefly IN consequence OF the unset
tlement which marked the dealings at !
the close of yesterdays business. There
were sharp declines in Union Pacific, Mis- |
souri, Pacific, Pennsylvania. and Norfolk
and Western in the initial transactions,
but the whole market was quite unset
The trading retained an unsettled tone
throughout the forenoon. but toward mid
day much better demand appeared, and
this led to a number Of substantial re-
cOveries. Apart from the conjectures re- |
garding the solution of the Union Pacific |
Northern Pacific question, there was |
The directors of the Missouri Pacific /
met and adjourned without action on the (
dividend on that stock Prior to the
formal announcement CT that fact, Mis- !
souri, Pacific and the other so-called I
Gould stocks were under considera bic 4
pressure, but they subsequently rallied /
easily, with particularly animated deal I
ngs in Texas and Pacific and the. Wabash /
issues. TIE street seemed to take the |
wholly reasonable view that the dividend !
Jn Missouri Pacific had only been post
3cned for sound and sufficient reasons /
and t::at the status Of the stock in the
ma rket had not been injuriouSiy affected I
in consequence. Strong features Of the
railway list again were the Erie and 4
Reading issues. st. Louis and South {
western, and the Atchison stocks.
Little of interest developed in the deal I
ngs in the remainder Of the market. The |
local traction stocks were fairly steady I
N comparatively light dealings. The ap-
proach of the dividend declaration on 1
Sugar Refining together with encourag- |
ng reports regarding the condition Of the /
sugar trade, led to fairly active dealings .
N that stock, and there was heavy trad (
ing in the United States Steel issues. /
which. however, followed in line with /
All of the so-called specialties were 4
steady, but were inactive. Peoples Gas 4
and Consolidated Gas were again strong /
features in that quarter of the market
Among the days most important an
nouncements was that regarding the /
thorough success Of the Burlington and /
Quincy controversy and the application of /
he Union Pacific Company for the listing 1
1f its Sl00, 600, 600 collateral trust convert /
bile bonds. of which amount $40 600 600 is (
represented by the bonds issued against /
The Southern Pacific purchase now dealt
n in the unlisted department.
Money continued within comfortable
figures.