The Montgomery advertiser., 1902-08-09
WALL STREET REVIEW
EFFORTS TO SHIFT THE SPECU
 LATIvE INTEREST.
Supposed Plan for the Merger ot Southern Trunk Lines Has Its Effect on the
 Dealings.

NEW YORK. Aug. e-Enorts made today to shift speculative interests to now quarters of the market. The opening dealings allowed the Elamor of the supposed plan for the merger of southern trunk line railroads to take hold upon the imagination of the specu- iative world and most of the stocks which were violently affected yesterday started of on a fresh upward movement today. But 1t is also became very evident that the movement was overrunning itself, Either the desire to take profits the belief that prices had been lifted to above the intrinsic value Uf stocks led to prompt reactions in Louisville and Nash vile, Illinois Central and conspicuously in Hooking Valley. The last named stock not only lost its opening rise of this morning, but all of yesterdays sensational gain well. The reaction was not violent in other stocks. although Rock Island developed a heavy tone and Colorado Fuel became weak with considerable sentiment upoh the general list. It cannot be said that the reaction If the Southern group materially altered the gen. eral conviction of the street that important de- velopments are impending regarding the group. The difficulty encountered by Louisville in its advance above 50 was attributed to the fact that that Is the figure at which the op- tion is supposed to be held by J. Perpont Morgan X Co to buy the control of the road Some of the largest selling of the Southern trunk lines by brokers usually employed by the speculative leader whose publicity proclaimed "bullishness'' forerunner of yesterdays violent advances. Probably some disappointment was felt because the official announcement of the acquisition of the Chicago and Eastern Illinois by the St. Louis and San Francisco contained no reference to the further projects which supposed to lie back of that operation. In fact no official countenance could be secured from any other source 6 yesterdays many rumors The be- lief held that this and other important projects may have to await the return of J.. P. Morgan, now on his way here from Flu rope. Amongst the new points of strength the most conspicuous and influential was that in the Erie stocks No forthcoming for their advance beyond a revival of the old rumors of large holdings in the property by J. J. Hill and plans for its improvement by that capitalist The rise in Amalgamated Copper seemed to be purely speculative in its origin. Otter points of strength were the Col orado and Southern stocks Texas and Pacific and number of minor stocks
 The banks have not gained enough from the interior to offset the drain to the sub-treasury and a poor bank return Is indicated. This and the holiday prompted to realizing late in the day and the closing was dull and irregular
 The bond market dull and irregular. To- tai sales tpar value). Sll75 900.
 During the early part of this week the in terest in the stock list had fallen to so low an ebb that the members of the Stock Ex- change eagerly availed themselves of the coronation of the King of England on Satur- day occasion for holiday and peti- tioned the governors with practical unanimity to close the exchange. After this action had been taken, the market sprang into activity again and by Thursday the volume of deal tngS had again risen to well aDOVe ndlI a mil- lion shares The fact that the awakening was coincident with the return to New York from a vacation trip of the putative leacer of all the speculation movements that have occurred did not escape comment and the public out giving of this leader of enthusiastic confi- dence in higher prices for the future war ranted an inference that his own operations in the market were shaped to that end. Some of the most violent movements were in stocks which this leader and his following have been conspicuous and successful operators in the past and which their continuing interest Is avowed. The price movements have beers> ac- companied by a flood of rumors which may be either cause or effect, but which have bearing on the stock market situation in any event Official comment or discussion on the subject has been meagre, but there is gen. orally credence in the theory that important developments are pending looking to the con- solidation of interests in the Southern trunk line field The only accomplished fact of the week upon which to hang the theory was the formal announcement the plan to take over the Chicago and Eastern Illinois by the St. Louis and San Francisco. This and the recent reaching out by the St. Louis and San Francisco system ih other directions into the Southern field made 1t evident that there were new relations to be adjusted in that field Stocks of other systems. which the new element might be supposed to threaten with dangerous rivalry instead of showing depres- sion, were buoyant in the market and the speculative purpose promptly formed the in. ference that relations were to he h2rmoniZed throughout that field. This impression was strengthened by the well defined rumors that St. Louis and San Francisco was to acquire the Central of Georgia Railway and by the large and urgent demand which arose for the securities of that company The well under stood fact that the Georgia system is securely controlled in the interest of the Southern Rail way first gave rise to the conjecture that the new order of things was due to a friendly un- derstanding at least and perhaps to plan for unihcation The manner in which the seemingly accidental passing of control and Ina In ha ma n I.nI Nashville had resulted in the final lodgment of control of that system in hands Identical with the control of the Southern Railway were recalled to corroborate the impression of the working. out of comprehensive plans of uni hcation in that field The subsequent joint ac qurement by these results of the Chicago, In diana polls and Louisville further evidence in the same direction. The supposed conplais- ances shown by the Southern Railway to the expansion plans of the St. Louis and San Fran cisco powers would be found in ultimate con- trol also of the system. This would leave the Illinois Central and some of Its supposed plans for expansion on one side. It had been supposed that Chicago and Eastern Illinois was destined for ultimate absorption by H. linois Central It will be seen therefore that the fabric of possibilities built up by Wall Street surmises up to this point threatened to bring Into array against each others in terests once more the same powers that were in conflict early last year in the trans-con- tinental field. generally distinguished the Morgan and Hartman parties. Wall Street has been quick to nnisn us structure or sur mise by a theory that these powers had grown too wise to repeat the destructive struggle of last year and was to unite in adjusting the control of the Southern trunk line territory. This is the substance of the cause of the vival of speculation on Wall Street in the lat ter part of the week, which has but meagre authority from any official source. Previous to that time the market seemed to indicate that the financial powers had come to a tacit agreement to allow the stock market to rest until the period of active demand for money incident to the Fall requirements should have passed There has been no development in the money market to indicate effective relief for these requirements The two weeks gold ship ment was called a special transaction and was attributed to the working out of Austria Hun gary's currency conversion plan but it is expected that this may draw some further gold from here. The Paris demand for gold in the London market has also shown signs of revival General conditions in this codntry have continued highly favorable to values ex cept for the continuance of the anthracite miners strike and some threats of labor trou- bles in other directions.
 The bond market rule has been rather quiet and irregular for investment issues al though there has been an active market for some speculative bonds. United States 3s have declined r. on call since last week.
 Money and Exchange.
 NEW YORK Aug. e.-Money on call steady ct 2AG4 per cent last loan at 2A.
 Prime mercantile paper, 4&G5 per cent.
 Sterling exchange firm at 89 for demand and 4s5%64, 95h for 60 days; posted rates,