New-York tribune., 1901-04-28
finnnrial.
The Financial World

| a repetition since the same factors are work
| ing; and the business OF the country, as indi-
! Gated by the bank clearings, is greater than any
| of which have previous records III is also
| to be noted that the money market keeps easy.
| and Yesterdays bank statement showed in
] crease of nearly $1,9OOOOo in the surplus re-
! serve. No more striking illustration could be
| given of the amount of funds available for in
| vestment than the large subscriptions here To
| the British Ioan made at a time when 1t might
| he supposed every dollar would be in demand
| for domestic use
! Something of a fright given the Street on
| Wednesday, when the market broke badly un-
| der a wholesale outpour of stocks. 1t was on
| this occasion that the big buying of Union Pa
| cific was done Until the market turned and
| rallied little before o'clock it looked as II
| the buying of that stock TO facilitate the
| selling of other things; but when it was seen
| that on the general rally. the buying of Union
| Pacific became more furious than before, II was
| apparent that the selling of the general list was
| done to facilitate the buying of the other stock
! IL is probable that much of the selling was by
| people who had need to buy Union Pacific In a
hurry and good deal of IL; and who lquidated
| their holdings of other securities 10 get the
| funds The Financial Chronicle yesterday
had this to say on the matter
For the six days beginning with Saturday the
gregate sales Pacific 14Iasao shares OF
common 1s5510 shares Of preferred. and the ad-
vance price Of the "a points During
the time. OF Northwest common were caeso
shares advance OF points in the price Moth
usually very Inactive stockl. and OF ST. Paul.
shares. advance OF tss IN the price II
be said that such movements cannot in
light experience. be interpreted as merely
speculative.
The Chronicle hints that the ST. Paul ana
Northwest companies may be jointly seeking
NJ he mi There
truth in this, and it is surmsed that much Of
the hot buying of Wednesday. when over 100000
shares were done, was buying OF a defensive
character. 1t will be easily seen that the situa-
tion is peculiar. The moving Of great bodies dis
turbs their surroundings When the Union Pa
cifc purchased control of the Southern Pacific.
and the Burlington acquired jointly by the
Northern Pacific and the Great Northern, IL
necessarily altered the mutual relations OF the
other roads, namely. the ST. Paul. Northwest
and Rock Island They each have main lines
between Chicago and Omaha. where the U. P.
starts; and they have no direct Pacific coast
outlets. whereas the Union Pacific
mands two at Portland and San Francisco. The
Northern Pacific comes direct from the Pacific
coast to Chicago over the Burlington This
makes II independent. But the other lines after
the two big purchases referred 10 We're made.
were in a certain sense bottled Up far
Pacific coast connections concerned
1t is generally cheaper 20 buy than to build. 1t
may not be that actual control OF the Union
Pacific is sought by the ST. Paul and Northwest
companies. much less that it has been acquired:
but there is reason to suppose that ownership of
Union Pacific stock by them will be so large that
they will have potent voice in the control of its
policy-something stronger TO rely upon than
traffic agreements. 1t will not be overlooked
that the situation is one which certainly does
not tend to depress the market price OF Union
Pacinc When the prediction made that
the stock would sell high as Burlington the
latter was quoted about 40. The prediction
holds good-but not for next week
The argument adduced here last week that
the price at which control of Burlington was
purchased raised the market price of other like
properties. has been criticised The difficulty
seems to be that effects OF large operations
which are familiar phenomena in real estate
and mercantile dealings, cannot be recognized
in an operation on the same scale occurring in
a railroad property. When large parcel OF
real estate is purchased. the purchase price is
held to establish standard for surrounding
property, whether il be above or below then ruI-
ing quotations, When an unusually large pur-
chase Of print goods is made in the Fall River
market. the contract price makes rate for all
the print goods awaiting sale. No one questions
these FAMILIAR facts; but purchase of railroad
properties IN bulk is a rare transaction IL is not
easy Tor the average man to see that such a
transaction mas the same effects one OF like
magnitude IN real estate or merchandise
Last week it said here that sor,a+bing
was coming in St. Paul which would make the
STOCK sell higher than even the figure il had
oeeh rusned up to the day before-1IO On Mon
uay morning. St Paul took wings and flew IN
W i'" 50 rapidly that at the same rate of move
''e''' All possible good things coming would have
~ uisoouited IN the price before two O'Clock
The early buyers. therefore turned salIers and
iiiaoe such hard drive at the stock that thew
broke IT TO 169. 1t has not since bsen above m
-Ne'ertheiess, as the original information came
-io'. d source which has never yet failed on any
Pieuio'ioh made, the st. Paul prediction stands
ne atchlson company is able to report an
o'"ef ihohth OF phenomenally large earnings the
s-oS S-oSs increase for March being no less than
Al the same rate of earnings for the
iendlhuer OF the fiscal year as for the nine
lilol'hs' Atchison's gross will aggregate Sri OOo
ooo' Ihls makes the . per cent preferred stool,
sure OF selling well above par; and as for tha
Oohiinoh' the coming dividend of IL. per cent
won cut much figure in making price for tha,
''eA' Inc surplus remaining after the dividend
On the preferred is paid. will make the level for
IT, II VIII be interesting. however to see how
r t-'uen STOCK IL VIII take 10 carry Atchison pre-
ietrea over the long prophesied figure of 100
IN the fractions. the liveliest speculation has
'een IN Brooklyn which costs less money 10
''aiiuie than Manhattan or Metropolitan Friends
VI these properties are highly gratifed at the
iioulhcations in their favor of the provisions of
'"e fofd franchise law. which were made by
recent legislation The Metropolitan will be a