Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-07-28

crops of 1882 to replensh the ravages
of 1851, the manipuative party in con-
troll of the market was predicting still
| higher prices, and the saying that Wall
street was the only blue spot in the
country was the catch word with the
bun contingent. But Wall street was
surfeited with capital creations and
bonds became unstable. There are
signs of languishing i'll GALES of newly
created bonds now. Overtradng has
done it's work and the market was
flooded with watered stock - Rock
Island WAS doubled. Iron Mountain
coub,ed or trebled. and bonds and
IstoclSs by the shipload had been issued
against the new railroad construction.
With the financial undertakings of
that past period may be found analo-
gies with this. Burlington bought at
100, Northern Pacific common at $500
regular and at $1,000 for cash are re-
sponsible FOR $4O00oO000 of Northern
Securities. and apparently at least
Sl30,000,0D0 in bonds and stocks of
Union Pacific. Strange contrivanceS
have appeared. Atchison works out
S30,000.000 in debentures, impairing the
value for investment of every security
Oh the road, from the adjustment bonds
down to the common stock; American
Tobacco common is quadrupled from it's
capitalization in Consolidated Tobacco
bonds: Metropolitan Street Railway is
voted out of the hands of it's sharehold-
ers and concentrated in few hands by
d novel contrivance: United States
Steel attempts the violation of fun
oamental economic law in converting
contingent into fixed charge by eA.
changing $200.000.000 of preferred stock
into bonds: the Monon road is repur-
chased by the interests who sold it for
half the money, to be saddled at high
prices in bonds on the Louisville e
Nashville and the Southern railway;
the Chicago e Alton comes out capital
ized on a basis of three for one, and the
Amalgamated Copper Company is
awash with water.
wall street has turned on the vest
ern element, in consequence of stock in
fiation, capital readjus t.nent and stock
watering plan with the Chicago, Rock
Island q Pacific road. 1t calls them
reckless financiers. There is no inten-
ton here of justffying the western
rlungers for initiating their stocks or
watering their property. Their plan is
open to the most serious objection.
Which other group of financiers would
have had to do with the enterprises
above are free to criticise
the western plungers? The latter have
taken the money poured out to them in
the stock watering iron and steel pro-
motions. sold their holdings and i'm
vested the proceeds in a railroad. They
have developed that railroad amazingly.
They have paid high prices for property
and have done what the eastern finan-
Gers would have done with acquired
- issued bonds and stocks
against them. Finding the burden too
reavy at last, they now propose to shift
some portion of it upon the public. In
this they are merely imitators, not
and they have many prece-
dents set them by the eastern syndi-
Gates to follow. 1t remains to be seen
the people will endorse the
plan and relieve the western party and
their eastern allies of the watered
stocks and bonds. as littel earlier in
the game they took the securities man
ufacted by the eastern syndfcates.