New-York tribune., 1901-02-24
financial.
The Financial World.

ing much to 1t beyond very plain evidsn.-~
n4u'uduon- II opened Monday norninv -
some animation specially conspicuous - "''n I'm
steel stocks; the strength then went ort 80.
ana there was not much more to il as,a. ~ ~
oeSond a slow dribbling Of stocks until rbr--
ody afternoon when it stiffened up cousdarah,,.
and came TO quite strong close
Yesterday the banks were open tbou,n a.,
h'Nchahge was not and the bank ststsr,s-s
came OUT at It's usual hour. Had business ~
soins on at the time. doubtless the sta.sr,.~.
:. H"'e slVeh a little stimulus to price, :.
'ide the expansion OF loans. yvs,,s
SHINING 10 create uneasiness had hau~
ehecked' In this item of the statenan+ &c"
+ was a decrease of nearly So o0o GOO. mere
surplus reserve increased about e. 80 ens
bringing 1t up to S14,5O0OOO. A vaa- 'So'O'o
$l9bOoOOO The actual amount a. ,5o.-s- = "ds
ported IN the loan item is In itself TOO 'e
~ Ol much account. considering that a.. - - "
Ut ioahs roots up over 900 millions b,. a. 's'a'
pOi'dnce Is In the indication that tba -
eAP''nSlon OF this item. which had car.as -,
eet 70 wonder where the thing wonrd 80
' at idSt come to an end. Temporarily a, -.
me liquidation in the stock nnarla+ -. -eaS'.
something to do with the decrease. b,. nave
potent cause is probably the fnanca1 a--.- ,1O'e
uents IN connection with the pending So,
Gnu 'iie issue or certain amounts Of new -,
OHe OF the incidents OF the week was ~. sIUS'
i"s OF burlington. and the food Of r,,D,o-.
Win IT, to which the resignatio, :.
5--sii rerkins gave color Of truth. cof,c,-
ueht with the advance in Burlington No.
cline in St Paul One Of the -,,-,o-- -. -S a ue-
burlington stock was beinE bou9b+ q, 49, nat
terest OF the Union Pacific To n is An .,,.n' w
tatiVe denial can be given. But II car, -
aHirmed' on Just as good AUTHORITY, +ta. 20 %
i@iuie 10 secure the corporation of oar.,-
Iarse interests in the ST Paul eorna,v -
ioiceu tne parties who were trying "a -.
"hdt the street called the st. Paul deal - -
10 the Burlington; am to put that a. 80. -, -
oie INK IN the proposed line from the A.,.-.,-
20 tue Paeif1c. The proposed Atlantic 5i,,.,s-
Is tue Erie; the Pacific division would ba tss
! Northern Pacific and Great Northern. rha r,,s
oie division was to be the St Paul, but IL ns.s
Burlington ne
we near however. that IL the ulan zo.
through II will not be through purchases :,
Burlington stock in the omen mart-et. L,,. -. ~
private negotiation. II can be readily sAAr .s..
information OF these negotiations getting out--s.
would De tnevttable-those who got the tnfor,,a
uoh would be disposed 20 buy Burlington On On.
; eeanees that the deal would go through Rr,
the stockholders OF the Burlington are So ,pr,a.-
ous' tnat 70 effect anything by open purchases AZ
stock in the market would be next 70 fr,no.sinl.
Before the required amount Of stock cou1d \.
oeusht. the price would be up to urobihitiv.
nsures- Whatever is done. therefore. must h.
done by negotiation with the larger holders. ard
It is reported from very good sources that thas.
heso'la1lons promise TO be entirely successful
In respect to this. one who ought to know. re-
marked Il think the 81. Paul people will b.
kicking themselves very soon. if thew are M.
doing ID already"
The point given IN this column last week tba,
the preferred stocks of the steel companies
looked Ike the best purchases. was verified bv
tne event Federal Steel preferred FOR example
rose i've points or Monday. These stocks. how
ever. fell hack later with the rest Of the list
while the doubt grew as to the terms upon which
the new steHI combination company would take
in the stocks OF the various companies IL Is
proposed 70 absorb. Then again L must be
confessed. the capitalization Of the new company
IS so enormous. that il staggers the public. The
average man-and the average man is the per-
son who has to be thought of-cannot think Of
the new concern otherwise than as a new crea-
tion. II win take him some time TO realize that
il Is no more than a combination OF things al
ready existing; and that in the making Of the
combination there may be an actual reduction
OF the nominal capitalization OF the concerns
absorbed.
Three hundred millions Of bonds. 400 millions
Of preferred stock. 400 millions Of common
100 millions in alI-this seems 50 gigantic that
il is no wonder the public gasps with astonsh-
ment- Some OF our large railroad companies.
the Pennsylvania for instance have a capitaI-
cation so great that the people would cape Il u
were presented to them in a lump as a new thing
but the difference is. that this lump has grown
through a long series OF years by slow acerston.
and the increase in bulk passes without obser-
walton. Anyway. IL is a striking testimony OF
the Industrial and financial development OF the
country. that within a few years Of the day when
the first prominent ACKNOWLEDGEMENTS In
troduced to Wall Street. an industrial cOnbi-
nation should be planned with a capitalization
much larger than that OF any Of our largest
and oldest railroad systems; and that the head
and front Of it should be j. Pierpont Morgan.
AS the terms OF the new consolidation must
soon be made public it is useless guessing az
them now. a syndicate subscription paper IS
out. understood to be for 200 millions. but in
the nature OF contingent liability; FOR il is still
positively stated that the actual cash transfer
involved in this bulky transaction will not ex-
ceed 25 millions.
The market has been waiting to a consider
able extent on this business. and will doubtless
continue TO do so. Meantime the general bust
ness of the country. and the railroad earnings
which reflect il. continue to be most gratifying.
This Is specially the case with the southern ard
southwestern roads. The advance in the rate
OF dividend omthe preferred stock OF the South
ern Railroad. from 70 4 per cent. is confidently
looked for at the next meeting, and is reflected
in the price Of the stock
More attention Is being paid among investors
TO issues OF securities which are exempt