Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-11-21
The Chicago Packing House
Combination is Not Making
Good Progress
HIGH PURCHASE PRICE PAID
Insiders in the Deal Have Raised $780,
100000 to Buy Plants, But Have Been
Compelled to Buy at High Figures
Break in the Price of Packing Stock
Ia Suggestive.

New York, Nov. 21.-Chfcago pack
ling house combination is in bad way
( This is fact, not rumor. To quote an
/ authority, it is sick" This means a
great deal
/ Insiders in the deal have raised APP
| proximately $50,000,0 900 with which
plants have been purchased in order to
be merged. While the money borrowed
has been invested in substantial prop
critics, there is no doubt high prices
have been necessarily paid. Therefore,
altho these big loans are represented
by sound assets it is reasonable to as
sumo such an Indebtedness would not
have been incurred except for the pur-
pose Of reselling and distributing the
cost in the form of securities to be
disposed of to the public.
In view of the immense sums thus
far expended in the acquisition of
plants the necessity for $50, 100000 of
underwriting capital becomes more APP
parent. 1t is easy enough also to see
that such an amount as that can not
be raised for a considerable period. The
insiders will be obliged to carry their
obligations and hope for the best. Sick
ness and death are not synonymous
terms in financial any more than
a medical sense. but they are equally
suggestive of chance.
The further break in the price Of
Swift & Co. stock in Chicago TO-DAY
to III was regarded here as a nee
essary result of the uncertainties ex-
listing with reference to the big deal
1t transpires further that the selling
OF Swift stock has been by important
as well as less influential people.
Much of the liquidation has been In
small lots, the stock representing the
holdings of employees of the packing
companies. So long as 1t was their
INABILITY alone to carry the shares the
selling was not significant. But the
tact OF larger people disposing of their
holdlngs can be accepted as an i'm.
portant expression of uncertainty. The
Ilttle people We're mostly crowded out
oy demand for so point margins by
some OF the houses carrying the stocks.
One lot or selling caused others. until
the market for the shares has prac-
ncaliy collapsed. The original ad-
vance started little below par.
Manhattan stock made a further adj
vance yesterday to 15424. Exact infor-
nation as to the occasion for the rise
Is not at hand. 1t is strongly asserted
that the company is 10 be taken over I
by the PETERBOROUGH Rapid Transit
Company, which controls the subway
system. The statement goes that for the
first two years dividends on Manhat-
tan will be paid in accordance with
cent is to be guaranteed
The Manhattan company is now
earning at the rate of approximately 10 [
per cent, and per cent dividend is
regarded as certainty of the future,
even If no deal We're on. The original
report had it that the New York Cen
trail would lease Manhattan on a z per
cent basis 1t appears that six months
ago the Central bid per cent guar
antee, which was refused.
While reporting rumors is unsatisfac-
tory. the best opinion is that one or
ether of the two propositions named
forms the basis of the present rise Au-
gust Belmont is the leading spirit in the
company. 1t has capt.
tai of $35,000,000 and controls the con-
struction company which is building
the subways.
Trust companies yesterday made
freely some time loans a per cent and
thereby helped along the stock market
en- the bull side. The general list has
advanced in sympathy with the buying
Of Manhattan. AS market movement
Il is not significant of general condi-
iions.
Talk of gold exports is again revived,
and the selling within the last two days
Of $4,000 shares of American stocks by
London and the continent has helped
10 strengthen the position of exchange.
A report got into circulation here to
he effect that conferences between
western bankers have led to certain
of currency legislation, one
,eing: "That the national banks may
cunt as portion of their reserve any
rational bank currency which they may
lold.''
Stone Cutters Want the Earth.
Creston, Nov 21.-After being grant /.
d so cents per hour for eight hours