The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-03-24
NEWS Of EASTERN
STOCK MARKETS
Bank Statement Livens the New
York Exchange.
PRICES GO A-sAILING
TALK OF GREAT COMBINATIONS
OF WESTERN RAILROADS.
PRICES GO A-SAILING

mat the capitalists who have engaged
IN the recent great syndicate operations
nave made provision Cor them some
time since, and while the resources OF
the money market were stiu suner-
abundant Assurance is warranted
mat their plans are carefully adjusted
80 that the syndicate operations in
themselves Will have bat slight effect
oh The money market. That there
should have been achieved a loan con-
traction by the banks of UPWARDS of 81 :
ooV'vvV IN Il week IN which payment as
made or OVer $40 600, QUO on account . .
the Union Pacific bond subscriptions
ana a cali made for payment of SIS. :
uvV,V0O on Monday on account of the
steer syndicate subscriptions. and in
whlch a furious speculation was car
flsd on IN the stock market. is an i'm
pressive demonstration of the new scope
OF the resources of the New York
money market
The effect on the stock market was
materially marked From a hesitating
ana irregular condition due to heavy
profit taking under cover of the fever
lSh ADVANCE of a few stocks. the market
leaped into an animated and buoyant
condition, earlier losses being generally
wiped out, and many striking gains in
price established.
1Rhe early strength was confined to
comparatively small number of
stocks, and. was due to the belief in the
progress Of plans for a great combina-
ton OF western railroads. The Denver
* Rio Crande stocks led the advance,
with gains OF points fcr the Uym-
mon and 31s for the preferred. The
no Grande Western stocks, usually
dormant, sold Is points higher for the
common and 81 for the preferred than
the last sales The Wabash stocks,
Missouri Pacific. the ST. Louis South
western, Texas & Pacific. St. Louis &
San Francisco and the Colorado South
err all responded with gains of 1 to 25A
over yesterday. A number of recently
conspicuous minor railroad stocks also
York. Chicago & st. Louis stocks, the
Chicago, Indianapolis & Louisville
stocks, and Lake Erie & Western.
the strength OF these stocks did not
prevent declines running to a point or
more in many active stocks on realiZ-
ing profit-taldng going on evidently
under cover of their strength. The
smelling stocks were raided down 81
and 31a- for the common and preferred 1.
but rose strongly again over last nights
level. The steel stocks were rather
heavy.
It was not until the bank
statement was received that the
undertone Of depress on was over
come There was some renewal Of
the realizing here and there, but the
closing was animated and the under
tone strong, with prices near the best.
a number % Influences combined to
phosphate q very active speculation for
the rise with the opening of the week
and a heavy speculative proht-takiDs
had been wen absorbed by the growing
new demand, SO that the general
strength OF the market has been well
sustained
Last Saturdays bank statement, with
its record of loan contraction, was in
terpreted to mean that the large syndi-
cate borrowers for the various consoli-
dation and absorption plans We're in a
position to liquidate loans to offset any
encroa chnent upon money market re
sources from other sources. The con-
test for control of Burlington appar-
entity continued, and was supplemented
by excited speculative buying CT stock
BY Tuesday afternoon the speculative
profit taking had oYerbOrne the force
of the buying, and Wednesday saw
some sharp reactions. But new points
of strength developed and rallied the
market.
The buoyancy of a number of minor
railroad stocks gave color to reports
that the process of absorption and COM
bina4ion in the interest of the larger
r-silroad systems was still actively pros
ceeding. Many stocks with a compare
lively short history. owing to reorSan-
IzaHons in recent years, touched higher
prices than any previous records, and
others went higher than for some years.
Huntsville &, Nashville aus1 Missouri Pa
ciffc is pointed to as an unique example
OF a Observation-Disclosures road stock
selling above par
There Is a conviction in Wall street
that this property is 10 be made the
center. of a far-reaching consolidation
Of southwestern railroads. The heavy
buying of Wabash securities remained
something of a mystery and IL is at
trfbuted to various other railroads, in
Guiding Missouri Pacific interests The
concurrent strength of several OF the
other Vanderbilt stocks give plauSibil-
ify to a superstition that the Wabash
NAV be involved in plans. concerning
them. The notable strength of the
Fries was accompanied by many ru-
uuOrs of plans for extensive rehabilita-
tiou OF the property promising large
profits available for distribution as
dividends. Such possibilities as were
perceived OF upfavOrable developments
in the situation were kept in the back
ground, as is sssual in a period of spec
ulative enthusiasm in Wall street.
During the midweek rea&tiOn some
consideration was given TO the threat
ening AnBlo-Russian difficulty at Tien
Tsin and the failure of negotiations for
peace in South Africa which were de-
pressing the foreign markets. The an.
nouncement that an agreement has
been reay he'd between Russia and Great
Britain was an influence in ralIying the
market.
The prospective developments in the
money market and a rise in the call
loan rate received some attention But
considering the magnitude of the
weeks financial transactions and the
comparatively small effect, spectators
adopted an optimistic view of the out
look and they were encouraged by an
assurance from the capitalists con-
cerned in great syndicate arrangements
in their confidence in the SAFETY Of the
situation. The payment last week of
$50. 600, 600 in dividends by the Standard
oil company and this week of a $1O,-
100000 installment on the $40, 900, 900,
subscription 10, the new Union Pacific
convertible bond issue anE the call for
2 So. 900 900 payment or Monday of the
syndicate's subscription Of 500. 0O0, 600
to the steel merger were regarded as
ample tests Of the condition of the
money market and of the nice adjust-
melt of the plans Of tire great syn
dicstes to their respective needs. This
adjustment and equipose is, in fact
the key to the whole situation as has
been previously pointed out.
The strength of the sterling rnoney
market in spite of the continued large
trade balance in our favor as eonclu-
sive evidence of the continued employ
ment of Americas capital in foreign
Snarkets and shows that our capital
will participate either directly or indi-
rectly in the coming British war loan
The prospective drain on the money
market of the governments collections