The Washington times., 1901-10-28
STOCK MARKET COMMGN 7.
General Conditions Most Hopeful
Despite Financial Situation.
Lnteness of Cotton Movement May
Cause SmniI Gold Exports, hut Diff
f5cuIty Is Tempornry - Northern
Pacific Developments Favorable.

Lnteness of Cotton Movement May
Cause SmnII Gold Exports, Hut Diff
f5cuIty Is Tempornr. - Northern
Pacific Developments Favorable.
NEW YORK, oct. 27.-Asidc from the
condition of the money market. which
still casts something of damper on the
enthusiasm of the bulls, conditions in
Wall Street during the past week have
been by no means Of an unsatisfactory
character The sncfts Of the bears to
dopress stocks have proved futile, for the
reason that the public cannot be induced
to take a pessimistic view Of the stu
alton. while the strong interests in whose
hands the majority Of securities are at
the present time are not only confident
of their ability 10 maintain prices, but
believe firmly that whatever unfavorahle
features thor, are to be reckoned with are
purely Of a ransitory character, and
viii soon he eliminated altogether The
tendency OF foreign exchange at this time
is it is tTUe, not wholly favorable, but
the best judges Of this sensitive barom-
etcr of international trade freely eN-
pressed tho opinion yesterday that ii
would not reach the gold exporting point.
Notwithstanding the extra inducements
which European money centres are Offer
ing, though it is not impossible that
certain interest in Wall Street, which Is
always alive to speculative operations in
exchange, as well as in the stock mar
ket, may perhaps transfer some gold from
its American pocket TO its European
pocket. purely for the influence such
movement would exert, ana without re-
gard to the profit or loss feature Of the
transaction.
The present peculiar state of foreign
exchange is due almost wholly to the
lateness of the cotton movement. 1t
therefore is wholly temporary in char
acter. The position of the banks is not
such as to cause any uneasness. though
the Sub-Treasury is again absorbing the
funds OF the people in such a manner as
will probably result in some action by
the next Congress.
The Northern Pacific situation is. it is
reported, on the verge OF solution. 1t
has never been a cause of concern to
those who are thoroughly familiar with
the actual conditions although there is
little doubt that certain interests have
used it for the purpose of depressing val
ucs and accumulating stocks. 1t is said
upon the highest authority that there has
been no play 1t cross purposes between
the two great factions which were at war
last spring. The announce ment that har-
monv had been thoroughly established
has been borne out by the facts. 1t is
C. a-iteiy stated ;hat at the time the com
promise was reached the Union Pacific in
terests held 40 0cv shares of Northern
Pacific preferred stock and 80. .005 shares
of the common stock-a clear majority
and one that gave Union Pacific interests
complete control of the situation When
the Compromise was made and Mr. Nor
gan was allowed to select the board Of
directors, the character OF the assurances
received from him were accepted by the
mon P:elhc people as a sufficient guar
autee against all friction in future.
There has been no friction. and the
stories to that effect have been put out
purely Tor speculative purposes. Mr. Nor
gan ana Mr.. Hin would be utterly unable
10 carry out their plans for the retire
mont OF the preferred stock. notWith-
standing that the board Of directors is ap-
parenuy favorable TO them, without the
thorough cooperation OF the Union Pa,
citic interests. While IL is even possible
that the directors might vote TO retire
tho preferred stock. ii would require a
tWo-thirdS vote of the stockholders TO
authorize the bond issue necessary to
finance such retirement. This fact is
obvious.
The negotiations OF the past month have
had solely in view the financing Of the
Northern Pacific situst ton. Both sides are
anxious TO get their Northern Pacific Sc
curities in marketable shape. The Kuhn
Lceb-Harriman interest acquired their
preferred stock around 80, and il is said
that they viii he satisfied with a 10 point
profit The lawyers. therefore, have been
working on a scheme to retire the stock /
by the isSusLte Of low rate bond which /
Will be sufficiently attractive to the public !
to enable the company to dispose Of it a [ /
"A price that viii reimburse the Hartman I
Interest, and at the same time be Cf ad- /,
vantage to the common stock holders.
Ender the present charter. the preferred /
stock shares alike with the common /
after per cent has been declared on both
classes Of stock. If, therefore. the pre-
ferTcd stock can be retired by the issu-
ance Of a ~ per cent bond. the common
stock would not only be benefited by the
decrease in charges on the senior securi-
ties, but would have the benefit of ali the
earnings Of the company available for (
dividends. At the present time the
lawyers Of both sides 9rc busying them l
selves with the cons r'iction Of a plan I
which Will be legal IL the many States
through which the cCmpanys lines run.
as well satisfactory to all interests
impossible problem.
In the santinle considerable interest
is being shown II the Vanderbilt line. 1t |
Is generally believed that the Dominion /
Securities Company Is the vehicle through /
which the Nanderbilts expect to sOlidify /
the holdings Of all their subsidiary lines /
as well to form n network Of C,.AtribU-
tory systems throughout the Canadian (
provinces II is expected that some i'm
pCrtant announcements concerning this /
plan will soon be made. This probably
explains the activity Of the Vanderbilt |
issues recently.