The sun., 1902-04-21
TIE FINANCIAL SITUATION.

The stock market has undoubtedly |
,.oadened and. 10 a considerable degree,
o,saued the interest Of the outside public. |
rNsre is still much soepticism as 20 how |
,.ns the buying fever will last Expert |
a,ced observers, who have for six months |
t.ct been impressed with the dangers |
,rooceding from the huge loans OF banks |
rna trust companies and the general i'm |
r.,nse expansion OF credit, cannot be |
.,noc,ed 10 be moro enthusiastic now
han they have been. Popular distrust
oItho Western speculator who has recently
sr,red as the leader OF the market is
vrobsbly as ingrained as ever; no man
tnown 20 the financial life Of the country
ever had more than he the reputation OF be-
ins willing TO change, lightning like. his posi-
,ion on the market and to ruthlessly sell
ont his friends and followers. The fact IL,
however, that this Western gentleman is
no longer the dominant power that he was
in the comparatively duh market three
yeeks ago II may fairly be said that he
cave the present movement its initiative.
that Is, that the tale OF his Louis
vile coup served to inname public
speculative interest. But subst antial
rAople and great banking houses in Wall
Street were buyers last week, and, as the
leading commission houses can testify,
the volume Of general business there nearly
doubled II must be remembered that
the number Of habitual and. practically,
professional SPECTATORS In the land is a
ihousandfold greater than II was a few
wears since. and that the scale OF thoir in
dividual operations is also much larger.
The activity Of these men alone can produce
t,p bar RI aNs tho Storlx Exohan
even II not a single transaction IN tho five
trading hours could be attributed 70 those
who only occasionally make ventures in
the stock markets. With every report
from trade and commerce uniformly and
continuously favorable, with few reasons
suggesting themselves to small investors
why stocks should be sold. and the best
Of reasons enforced upon large in
vcstors for holding onto their securities
namely. that II they sell even portion OF
what they have they may lose control Of
their propertes--it is not at all unlikely that
higher prices IN the stock market will be
seen. There is nothing now in sight to
avert them.
The declaration Of the most powerful
hanking house in the country that it had
assumed control OF the Louisville and
NhtnNlllt tlluhtlOtl ntCttSdIlN dldNtu dIl
apprehension that a corner" would result
from the affair; and the feeling Of relief
experienced by every one explained in no
small measure the buoyancy in the market
that followed. Wall Street il still without
definite information as TO the exact terms
Of the settlement that was made and as to
lust what will happen to Louisville and Nash
vile in the final adjustment. II is very
doubtful II n complete public answer to
the first question ever will be given, while
details concerning the matter last named
may be long time in coming. But mas
much as ii is known that Mr.. Gates refused
an offer OF $50 a share from the Seaboard
Air Line Railway for the control Of the
Louisville and Nashville, IL is clear that he
must have accepted an offer Of at least an
equal sum from other interests. And II
is also clear that what has been done inures
in every way TO the future advantage Of
the Southern Railway system. deci-
sion favorable to the railway companies
in the Northern Securities case would
undoubtedly make easier the task Of rail-
way proprietors In the South as well as
in the Northwest. But II no actual
future merger Of the Louisville and Nash
vile and Southern Railway is planned.
or is possible, there are obviously many
ways Of operating the two roads for
their mutual benefit and In the interest
Of the public service; and there will un-
doubtedly be included in the programme,
whenever arranged. a proper disposition
Of the Illinois Central. That the one great
tendency In railway life OF the United
States to-day is toward consolidation,
no thoughtful person can deny. Years
hence there will be In this country only
few great railroad systems. just as in
England there have been gathered into
two or three transportation lines the in
Vulnerable small railroads Of half a century
ago. Huge railway corporations are not
new in the industrial history OF nations.
The gross selling value Of the London and
Northwestern Hallway shares is nearly
equal 90 that of the stocks Of our mammoth
United States Steel Corporation. When
the hour of railway consolidation finally
strikes II may also announce the birth Of
rational laws supervising and restricting z
railway operations Ia minute fashion
hat does not now obtain and very likely
political and other commissions msy attend
the process Sufllce IL TO direct attention
~ this time 10 the devious and curious
ways Ia which this consolidating move
men, is progressing
The strength II the Reading s'ooks had
a. much 60 do as anything else last week
with encouraging more hopeful feeling
&c. tho market Frequent TefsIensH has
l.rn made ~ THE column 10 IA. fact that
ue batrg stocks we're among thoss
Wsr ,Iud ~ said, cots-ryatiyely, 20 b.
s..uug lrlow their value, and that theli
,4udiuuu ant ITnsIauts would i-iaT al
sualvri- ruat thu-r ~ many other rAilwa,
lHlsf4sa could not When, many year,
49,, u., 'ato li,Hdsnt uowan 4 ths Read
- faai Iuiciassd tho ouai lAuds uos
Hayi by tu' Heading company. d. made
faf aa u.H tsnI"raiy Interests q lb,ad
.g sr.u ..urgrual . mistake. bot on ths
.si Lsu4 i,s I'D the greatest tl.ils I.ns
eide fHI ulr I."Iinsi.sIl welfare ~ the Rad
If s.H.I Iatr pevH usttst fpf ~ liiiiusIlat,
I.IIsa.s Il uI.. IHuiauy n tLs lanls has
..sl paasi lnrL,ad Il a,4Ii,'d il fur
'sfsuHs .flsi thu weight - iisss lu,
H.sfs.l tsIaaDin but 80 ti.o uuas i-lns
a.rH..fI.S zeal lai,ds ssd sutiu,t a.
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