Evening star., 1902-02-15
Traction Merger Had Bad
Effect on Stocks.
LACK OF CONFIDENCE
PUBLIC REGARDS UNDERTAKING
AS SOMETHING TOO BIG.
Good Support to the Standard Railroad
Shares and the Industrials-Gen-
eral Market Report.
Special Dispatch TO The Evening Star.

special b1spatch to The Evening Star.
NEW YORK. February 1.-The
nouncement of the Metropolitan Traction
merger this morning an Undertaking of
great magnitude on an abundance of new
securities. did not impress the street very
tavorably From an opening level around
III the price receded 2s per cent under
mixed selling but later rallied To the best
price of the day
The new Securities compapy is Ia take
over all the assets of the Metropolitan Com
pauy, substitute electricity for horses on
several hundred miles of surface railway.
and may, under It's liberal charter absorb
any rival which may consent To consoliia-
ton.
Old shareholders will be given the privi-
lege of subscribing to the new stock at par
on the basis of one share for every forty
flVe shares now owned. All OF the high
rate interest-bearing bonds of the Metro
politan company will be retired for a 4 pcr
cent obligation.
The new securities company stock was
traded in on the curb when and as issued
from 10 to 16 per cent premium So far ths
year Atchison. New York Central, Brook
lyn Rapid Transit and Metropolitan Trac-
ton have decided upon an issue of new Sc
curfties aggregating some $3OOpOOCO To
arrange for this and the numerous other
undertakings now in prospect the task OF
keeping the money market easy will not N,
entirely simple one.
The continuous increase in the volume OF
securities and the new methods OF capt.
talization contributed toward the present
apathy of the general public.
An increase of S13.49S. 100 In this weeks
ioans, making the total increase in three
weeks $6l,1I2.OOo. is not wholly reassur-
ing record. even though the increase repre-
Sents preparations for future activity In the
direction of Improvement
Bankers are reported as being sanguins OF
their ability to provide funds on the pres
ent scale without causing any disturbance,
put 1T Is no secret that many skeptics are
round among experienced bankers and
brokers' who have no securities to SELL In
ADDITION to the increase In loans the banks
lost $6S6.0O0 In lawful money whereas a
gain of over $2OO0O0O had been expected.
The deposits are larger by 14.5s7 loo and
the net result is reflected by a decrease OF
s.. .:s3o.375 in the reserve. bringing that item
down to l3ID.S.0. AS usual however
the room covered stocks on the bank state
ment and fair rally was recorded right
at the close of the day
There is an effort being made in certain
quarters to attach great significance to the
fact that Mr.. Morgan's firm Is not repre-
sented IN the new Traction deal, whereas
his rivals In the Northern Pacific episoda
nave underwritten the transaction The
Following that has been hesitating to buy
Stocks because of friction among the big
IHleIests see III tnlS mission Il cOnfirma-
ton Of their suspicious.
Amalgamated Copper rallied easily for a
gain of per cent during the last few min
utes OF trading. and there is n stron, con-
Viction that the steel stocks viii be taken
care of handsomely in the near future If
both these industries flourish in the stock
| market at the same time the idea of Erie
ton will lose it's weight
Southern Pacific. Baltimore and Ohio and
the Gould shares were all given spleno Il
support.