New-York tribune., 1902-08-03
fluanrlal-
The Financial World.

commission house business, which means tha-
is very little general trading; while in three a.
four leading stocks there is a feverish activitv
due to the operations Of certain cliques or CON-
binations, who have plans under way involviny
control Of these properties. or union with other
So while the general list remains dull the mar
ket has more or less deceptive appearances a.
much animation.
Take. for example, the lively fluctuations 4,
Colorado Fuel. They are not made by wba,
might be called public trading; but because tvo
parties are engaged in q hot contest for confirm
Of the property, and the up and down novA.
ments of the stock are the effects Of their strur
gIes- To an outsider, who was ignorant OF wha,
going on, Colorado Fuel would appear to he
one of the leading stocks of the market. Thi.
is referred to as an Illustration. The merits !,
the controversy are different matter. II VIII
be worth while to watch this fight In its later
stages, because it is almost certain 10 furnish
the public with an illustration OF the methods
by which a board of directors in possession. con-
trive to hang on to their places when decided
majority OF the stockholding body have voted
them out.
We have also had during the week an unusual
degree of activity in the st. Louis & San Fran.
cisco stocks. which ordinarily are rather DOR
mant This comes from the company having
acquired possession of the Chicago & Eastern
Illinois road-rather a surprise. because thousb
it was known that the latter road was for sals
1t was supposed that some company more nearv
allied than the San Francisco is. would be tbs
purchaser. In fact. it is generally supposed nav
that this purchase is only preliminary to a
larger combination; that some one OF the greater
companies Will turn up eventually as owner 0,
both roads, which its own system will unite and
unity. There is a natural alliance between tbs
Eastern Illinois and the Louisville Nash
vile: and also between the former and the
Gould road the st. Louis Southwestern, which
comes in with the Missouri Pacific system. III.
San Francisco property would fit IN geograph-
icaIly with either Friends Of the latter prou
erty say it's stocks will go much higher vher.
ever the general market is favorable.
There has been some good buying Of Norfolk
and Western. on the large increase in the saru.
ings Of this property. which is soft coal road
and doubtless the speculative movement IN
Chesapeake and Ohio has the same basis Ics
an Ill wind that blows no one good, and the
losses Of the anthracite roads through the strike
are somewhat compensated by the gains Of the
roads which carry soft COAL The last Pam
sylvania statement is case in point; andhh
TO be remembered that the treasury Of the Penn
syIvania has among its assets large amounts ot
the stocks OF the two roads mentioned N ~
spect TO the strike itself. 1t be said that
many signs point 20 its collapse before tAs
month OF August is out
AS a whole, the market was heavy through
the week. with one or two quick declines. They
however. were followed by rallies. for there are
no large amounts OF stock pressing for sale The
trade outlook for the remainder OF the year Is
against selling The declines were due IN part
TO the unexpectedly large engagements OF gold;
which. while not affecting the money market
now, may give Us higher rates later On Bu.,
says the Financial Chronicle:
he influences which above all others was responsible
for the sharp setback market received the
spread hostility excited by the plan financial
adjustment OF tbs Chicago Rock Island & Pacific Rail
road Co We only recording fact whsn that
the plan received with marked and general dis,avo
II may De added that the Appearances yesterday
lFridayI Of ths Official details Of the arrangement
not tended modify criticism. The plan sn5odiss sors
peculiar features and lack many ordinary
guards
The latter clause refers TO provisions Of ths
plan which were extracted from the charter 0,
the new company filed at Trenton. The "pecu.-
lar features" are several. the more prouinsnt
being these. as published in the Evening Post:
!. The common stock has no voting value, the
only directors II can vote for being a nullity N
the Board
2 No stockholder can examine the books Of
the company, except as the directors may permit
g. The directors may buy and sell the stock Of
the company. for the company.
f. The directors having real power voted
for only by the preferred stock, and the Board
is so constituted that four men are placed IN
what amounts 70 permanent control.
OF course the scheme will go through The
gentlemen who have conceived it. own probably
frco Of t,ao Sro
and doubtless would be glad to buy the remain
ing one-sixth II they could get it, If. there
fore. they choose to exchange their shares For
shares Of this company Of their creation. they
have an absolute right TO do so; and any st-
tempted legal legislative interference involves
an attack on the right Of private contract. As 70
any stockholder OF Rock Island who does not
choose 20 exchange. his rights are secure any
how.
Therefors there is no conpulsion and ore
s being robbed. Nevertheless, no schens carry
ing with it such serious menace to corporas
property has been put before Wall Street in
twenty years This menace is not in the sx-
oansion OF share capital proposed; for Il is o.
little moment that these gentlemen will coavsFi
,ne piece OF paper they own into three pieces
That Is not the point. though the Governor o.
iowa seems to think it is. The menace is the
example given by scheme which ingeniousy
,ontrives to put in permanent control Of greai
railroad property. three or four men. who are
practically irremovabIe by whoever may be the
-eal owners OF the property.
For see how this works. The pecuniary. or
peculative, success OF the scheme. depends on
he success OF these gentlemen IN selling 10 tas
,ublic the three pieces OF paper into which thsy
lave converted their one piece If they cannSs
ell them. nothing is gained They remain inc
'wners Of the property as It's purchasers. win
heir money tied up IN 1t. But il they can sesl
hese three pieces of paper, their purchase money