New-York tribune., 1901-10-27
finaur,al
The Financial World.


Northern Pacific situation: CD the outIook fo-
and its probable effects. II was added .ha, ,bs
last had not become as prominent as IL ovop,a
later. Discussion of this topic has become roo-a
active during the week. and yesterdays hars
statement gave II an additional impetus. s,ro.
~ showed. in the further increase of the 1os,
item- continuance OF the process Of transfer
renee of our foreign loans to home account AZ
exchange has also risen to about the gold ax-
porting point. at time of year when we oros.
to be Importing gold, public attention gets a
further jog in that direction The outcor,.
must apparently be higher money market
In respect to the Northern Pacific affair thar.
Is nothing new 20 be said which rests ON anv-
thing more than conjecture. The principal mar
Ties TO the controversy keep their own counsel
and outsiders can only surmise from the action
OF the market that it Is believed satisfactorv
settlement will be reached. II any other conv;c.
tion were felt among the big men. the uark.,
would speedily show it by the outpour OF stock
which would come upon it, For nothing fs ,,or.
sure than that If these contending parties can.
not come to some agreement, the resulting cor.
test would give US as fine bear market as anr
one could desire. 10 is the magnitude of the ",
terests at stake and the certainty that a srh,
would have most disastrous consequences
which keeps alive the belief that way out win
be found. There is not much. however az this
time to indicate that it has been found. or that
there may not yet be a smash up
The puzzle. in connection with this is ~.
buying of ST. Paul, which started on Tuasso,
afternoon. and has proceeded since with tba 40
feet of carrying the stock up some seven noir,.
70 III. 1t first looked as If the movement ws.
made TO stimulate the general list ST parI
being used as a leader. Since then it has ba
come talked about that the buying of the stock
had direct reference to the Northwestern ron.
troversy. This is not improbable. II was tho
ST. Paul which Mr.. Morgan first stretched out
his hand for. when the Northwestern con1bi,a-
tion was originally planned. The Burlington
was taken only after the effort to secure con
troll of the st. Paul had failed. 1t follows. thera
fore, that st. Paul was first choice. BurIington
only second
Who were the people who did really dafa,t
Mr.. Morgan's efforts has never been known 70
outsiders The people who cstensibIv did ~
have never been thought of as anything but
screen for stronger powers behind them Neither
was 1t known why there such strong OBJ
lection to Mr.. Morgans scheme; but when
after the Burlington purchase the opposition to
that came into light. it was guessed why the
ST. Paul scheme had been opposed. A significant
remark made at the time the Burlington pur-
chase was effected. that the ST. Paul was
a great property. and probably there were other
plans in connection with it," This came from
high source on the Union Pacific side. What
ever plans were in contemplation at that time
have probably never been abandoned.
Putting all things together. it is therefore
quite within the bounds of probability that the
stock has been bought in connection with the
%barr e.
There are only 81 millions Of it, which is small
things go in these days. and the earnings are
over AZ millions gross OF the preferred stock
which is selling at prohibitive prices. there are
something over "A millions.
There are two theories as TO how the stock
would be used. One IL the great proprietary
company is formed about which so much is
rumOred st. Paul stock would be put in with
the rest, on valuation corresponding TO its
earning power. Two. If the two contsnding
parties cannot come to an agreement and do
carry their controversy into the courts control
Of st. Paul by Union Pacific would be a consid-
cradle offset to control OF Burlington by North
ern Pacific.
The advance in ST. Paul had The effect Of stf-
fenins the general list 20 some extent, but it
very Irregular. even in the railroad department.
Union Pacific Of course went up: but Northern
prominent the week before. showed a declining
tendency. There was some Improvement in
other leading railroad stocks. but # appeared
to be in the main from covering Of shorts as
the Street has been bearsh lately and a good
sized short interest had accumulated in the
market The coal stocks were taken hold Of and
smartly advanced
II anything like a decent bull movement can
be worked up now.-abOut which there is divi-
sion of opinion in high circles-the coal stocks
should have a good place in it, for the coal
trade this year Is the largest ever known and
prices the highest. So close is the combination
which now exists among the anthracits pro-
ducers that secret cutting of prices is almost
unknown. If there were that central selling
agency which has often been worked for
and never yet established. the uniformity OF
selling rates could not be much closer than II Is
The earnings of the companies consequently,
will make showing this year far beyond any
previous year.
outside the railroad list. there has been moth
ing very encouraging The steel stocks remain
quiet. and not specially strong: Developments
I'm several of the minor industrial concerns
have been of disquieting nature; while Anal
gamatsd Copper continues its disturbances or
confidence in all the metal trades, and not COP
per alone II is persistently rumOred now thar
restriction of production VIII after ALL have
TO be followed by a cut IN the price OF the
product; and troublesome time In the Paris
and London markets over Rio Tinto and otnef
copper stocks is one likely result
On the bull side. apart wholly from the posi-
bic influence of new deals" there is the indis-
putable fact that railroad traffic Crews con-
tinuousIy. Shortage of cars is the universai
complaint. Freight IS pressing on the roaas
which they have not the motive power to move
and manufacturing concerns are hampered NJ
all directions by inability TO get goods in or OUT