Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-03-04

PREVIOUS CONSIDERATIONS OF q earning
power OF the different companies, the
value Of their property holdings and
the conditions OF their respective
branches OF the trade gave way entire
ly to their relative claims for new Sc
curities in exchange.
Some of the higher priced stocks
were sold by the stock exchange
traders, who covered their contracts
by purchase of some Of the low-priced
stocks with relatively large proportion
IN the allotment. A brisk market vas
made on the curb for contracts to de-
liver the stocks of the United States
Steel corporation when issued.
The making of quotations for the
expected new security furnished an in
dex from which to estimate the market
value of all the securities concerned.
The price of the United States Steel
corporation stock was seer to conform
approximately to that of the lowest
priced of the old securities, in which
the terms of exchange were at par.
The movement of prices in the group,
while very uneven, owing tc the ad-
Justmenlt of the prices to the ratio
of exchange rights. was towards a
lower level and with a diminishing
volume of trading. The terms OF the
exchange disclosed that the expecta-
ton was unfounded that the new or
ganization would provide for any con-
traction Of the capital liabilities of the
existing companies. All of the present
stocks get as much as par for par in
the new stocks. Some of the common
stocks get as much as 125 per cent.
in new common stock. All the ques-
lions of excessive capitalization, which
have been urged ever since the various
steel combinations were effected two
years ago, are in consequence brought
to bear on the new stocks. But this
question as well as others, such as
the effective administration of so vast
and complex an organization, the
question of public policy and possible
legislative interference and the like
are in allegiance for the time in Wall
street. There is a disposition to wait
for further light on these phases of
the problem from experience. The I'LL
innate effect on floating capital is also
much discussed with widely varying
opinions. Many reassurances are given
from sources near to the prime NOV
ers in the giant consolidation that the
financing OF it will have small effects
ON outside affairs. 1t is argued that
there is really no creation of new CAPT
tai but simply an exchange contem-
plated The actual cash involved in
the transaction, according to expressed
opinions, will perhaps not run "
S25, 900, 900 but the admitted existence
of an underwriting syndicate with sub
scriptions believed to extend to $780,
600, 600 argues some sort of potential
demands upon resources, which would
otherwise be without encumbrance in
operation elsewhere The approach of
the period of the year when the do
nestle interior finds increased need
for money in circulation, the current
absorption of funds by the sub-treasu-
ry, the continued delay in the resAlnp-
tion of Europe's supply Of gold from
the Transvaal and the upward tenden-
cy OF sterling exchange during the
past week, add to the SOLDERING infiu-
snce of these considerations. The dis
position of speculative holders to
tighten their loads may be traced to
these influences. 1T is of no small con-
sequence either that many of the men
of great means who have been fore
most in the operations which made
the recent unprecedented stock market
have left the street for vacations Of
various duration. This has the effect
of causing what the professional ope-
rators call a tired" market. General
conditions are reported satisfactory.
Railroad earnings continue large and
traffic heavy. The ST. Paul's stock
privilege and the resulting strength of
that stock were the ground OF an &C.
tive speculation. Several of the in
dustrial ~specialties and sharp move
ments due to individual causes, but
generally speaking the stock market
has been left more and more to the
hands of the professional traders who
operate from day to day in stocks with
out regard to general conditions.
There has been a good demand for
railroad bonds, especially Of the
Southern Pacific issues and some of
the Southwestern railroads and those