New-York tribune., 1901-06-16
financial.
The Financial World.

be dull ard irregular for time, because Of tho
possible disturbance of the money market by tho
PennsyIvania stock subscriptions, and other
similar affairs AS fact the market did az,
that way the forepart of the week; but later
as IL was found that the financial operations
referred to were not disturbing things Cbecau,a
possibly of the skilful banking plans on which
they were cOnducted), there was general brac
ing UP; and several favorable facts developtng
the market wound up lively and strong with
promise of doing as we'll better the coming
week.
One of these favorable facts the Govern
rnent crop report. which indicated that the
wheat crop this year would make something
more than full average; and it SO happened
that about the time il came out, abundant rains
were reported from those sections which, when
the report was made up. were suffering from
drouth. This was specially the in i'm
portant sections of the Atchison's territory
Some of the bulls on Atchison were getting
trihe nervous over the outlook until these timely
rains came along Another comforting fact
was an excellent report on the condition Of the
iron trade; by which it appeared that large as
is the production. consumption is still larger
London also sent the news of easier money con-
ditfons there with reduction of the Bank OF
England rate and stronger markets on the an
ticipated early close of the Boer war-which.
however, is all DOSh, as tnere are Stlll sixteen
seventeen thousand men TO be variousIy dis
posed Of
Possibly the market will broaden out some
what next week. 1t has been decidedly spotty
the past week Speculation has been active in
a. comparatively s--au number of stocks-as
Missouri Pacific. Union Pacific and st. Paul. the
fractions. and some Of the leading industriaIs
We ought to see revival of interest in
the coal stocks. which will keep the Readings to
the front. with the Erie issues; and those stocks
which have been active for the past few days
may be expected to continue so.
The Street has been treated to a variety Of re-
ports in connection with the large advance in
St Paul, and In Union Pacific. whose rapid up
ward movement from about 107 to 115 preceded
the more rapid advance of st. Paul to Isl from
166. The most circumstantiaI report that
some large blocks of St. Paul had been sold to
the Union Pacific people. and that these
would be placed under the U. P. collateral
mortgage preliminary to transfer of control OF
the road to the Union Pacific company. This re-
port has been circumstantialy denied by Union
Pacific directors. Their denial. therefore. must
stand. We perforce compelled TO look in
some other direction for the reasons for the
heavy buying of ST. Paul stock; and ii may be
recalled that when the ST. Paul directors re-
fused the offer of the Northern Pacific people to
lease the road. they assured the stockholders
that in no great while they (the stockholders
would be satisfied with the position taken. Since
Burlington. which taken in place OF ST.
Paul. subsequently went to 200. or close to it.
the argument is heard that the ST. Paul stock
holders will have get good treatment
the Burlington stockholders did
AS things stand we know well enough that
the Northern Pacific ENHANCEMENT necessitates
much more comprehensive readjustment OF
rel bnrvv dc
contemplated before that event. All parties to
that rather startling struggle say that this Is
In the working out of these readjustments. the
tape will undoubtedly give warning of conten-
plated arrangements while such arrangements
are still no farther advanced than preliminary
discussion. So while the current reports about
ST. Paul may be erroneous. something may
come later which will explain the present heavy
buying Of the stock AS 10 Union Pacific itself.
it's speculative outlook is I'll right.
Tomorrow the Missouri Pacific directors hold
what il is claimed will be an important meet
ing. The declaration of dividend is spoken OF:
and the price of the stock would ordinarily be
considered conclusive evidence that dividend
was sure But with the sort of people who now
seem to be dominant in the councils of the COM
pany. 1t IS not sure. They may have other and
wider plans. which have no relation TO the
declaration of a dividend at this time.
AS intimated above the coal stocks ought TO
give good account of themselves very soon.
The condition of the coal trade is first class.
The arrangements made some time ago between
the companies are showing their good effect.
1t is understood that the net earnings Of the
Reading company for May will make big ex-
hibit. The same rate continued through the
year would bring the second preferred. and the
common also. TO a dividend basis. Reading first
preferred ought to sell near 90; but the more
active speculation will be in the second pre-
ferred. which be retired by conversion. one
half into first preferred and enc half into COM
mon stock Very conservative investors regard
the first preferred stocks of the Reading and
Erie safe things 70 buy as investments. and
are buying them. One reason for this was con-
this form: The things used to buy as IN
vestnnents can't buy now. because they are
so high priced there is nothing in them We
have TO take these preferred stocks"
If. therefore, things don't go crooked. the
Reading and Erie issues Will be among the
stocks which will have leading places in specu-
latiOn in the immediate future.
In respect TO the group of fractions. there -
nothing new TO report except that the recent
buying OF them has been by first class people.
1t is that sort of buying which usually winds up
in n sudden rise. when the market has been
swept pretty well clean. and the rank and file
discovering this rush in to buy metropolitan,
which has been hanging fire for several weeks
in the past day two-and yesterday particu-
larly-was freely bought by interests Identified
with some rather notable movements in street
railroad stocks IN the past These same people
nave been picking up the stock in a leisurely sort
or way for several weeks but they are be-