New-York tribune., 1902-02-23
flndnrinL.
The Financial World.

| have consulted two o three of his most intimate
advisers; then the consultation would have been
| extended to some half dozen others. the pros
| and cons gone over. and the adverse interests
| brought INFO the consultation. Before the final
| step taken. every body who had any inter-
| est i'm the matter at all would have known all
| about IL. the subject would have been already
| half thTeshed out; and when the last announce
ment was made. all would have been prepared
| for it, and there would have been nothing in
the nature of surprise. II this cautious
| method of procedure which made President Nc
| kinley such prudent guide. His successor IL
| apt TO give you something abruptly unpleasant
| over night.
The shake-up he gave the Street on the North
| ern Securities case, right the Of a de-
| cisiOn by the Supreme Court which all the law
| yers seemed sure must of necessity be favorable
| TO the company, had disagreeable flavor OF
| Venezuela in it, II was less the action itself
| than the sudden way it taken. which gave
the Street such start. What will come next?
| seemed TO he the universal query.
AS the matter known Wednesday night,
| those who had stocks for which there was a
| London market sold there before market
| opened; and the selling large enough to
give us quotations at our opening. about two
points off from the previous days close. This.
| however. in the majority of cases. was about
| all that lost that day; for though prices
| did for time go lower they recovered again
before the close; and since then the list has
| not lost much. temporary depressOns being fol-
lowed by rallies; that at the close yestsr-
day. the market generally was a little better
than when the President first clubbed il,
It very different, however. in respect 20
sentiment \ genuine bull feeling had been
working up; this gone. An uneasy doubt
prevailed to what the effects might be OF
tying up a mass of securities such the North
ern Securities Company represents.
The real trouble is the litigation ITSELF
Even il the decision were adverse. there would
be comparatively little disturbance The diff
Guilty is the length of time which must elapse
before a decision be reached at all There
is 10 way apparently by which final adjudica-
tion by the Supreme Court can be had in less
than two years This is the fact which causes
concern. No end of things may happen in two
years. Men may die. With old corporation
individual changes are of less account With a
new and not much more than half formed con-
Germ like the Northern Securities Company, IN
dividuaI changes may be a very serious matter
AS To the questions involved. 20 the lay mind
it looks as If the thing would have to turn at
last on two: l. is the Northern Securities Com
pany a legal corporation; =. has an individual
owning stock property a right 70 sell il to that
corporatione If the corporate tion is not legal.
then of course il cannot buy and the stock
owner cannot sell. if IT is legal. no known law
prohibits the stock owner from selling to- this
or any other responsible buyer
II the ground taken be that there IS COM
bination in restraint of trade. obnoxious to the
sherman antitrust law. again it would seem
70 the lay nina that procedure should be taken
against the several corporations alleged to have
entered into such combination, viz. the North
ern Pacific. the Great Northern. Burlington, and
Union Pacific Companies.
However. il is we'll to bear in mind that Wnls
this litigation may give trouble the reaIy I'M
portant thing is the work the roads are doing
\ favorable decision tomorrow would not hoa
IN the prices of the securities if traffic were
falling of. rates dropping. and earnings shrink
ing on the other hand, the litigation will not
hurt the actual working Of the properties and
while they continue to show constantly increas-
ins earnings security holders need not worry
too much over legal wrangles.
Among the best supported stocks in the slump
were the l. : Steels. II is said there has been
large buying of them for inside account. = very
disturbing statement got into the papers that II
was the intention of the directors to convert the
per cent preferred stock into = per cent
bond, necessarily a second mortgage. Ihe
unanimous chorus of dsapproval which this
statement raised. must have convinced the d.
rectors that such an operation would he re-
ceived with extreme disfavor- Semi-oficial de-
malls have since Deen given that such scheme
was IN contemplation
II must be apparent 70 Mr.. Morgan that the
investing public are we'll disposed toward the
gigantic corporation he has created, and look
upon its securities proper investments. II
this not So there would have been no Such
instant criticism of Mr.. Schwabs visit to Monte
Carlo. While the common stock Of the company
is recognized to be speculative. and sells on that
basis the preferred stock is finding its way into
the boxes of both large and small investors. The
-F,lST1, 10 To
about 32OOO Ii would be most unfortunate II
at this time. when public confidence in the
solidity of tn corporation and in its trade
policy. is growing daily stronger. the directors
should take any action calculated TO shake this
confidence. Investors who have bought the pre-
ferred stock bought it because they want 10
keep il. and they don't want something else IN
place of it.
When the market braces up somewhat, the
Reading issues will probably be found % the
front again. The anthracite coal trade was never
in better condition. To output and net returns
on sales; and of the total tonnage. the Reading
and Jersey Central combined. have - per cent
This means heavy earnings with the trade m
the shape which judiciOus union OF ownership -
has given it, IL means also continuance OF the
same, and a future for Reading which will puI
its stock the dividend paying list in due time.
IL is notable that the demand for bonds con-
unues steady. They must however be safe
Some speculation there is in doubtful issues
and New England is getting flooded with bonds
all sorts and kinds Of trolley roads. most or
which worth perhaps. - cents on the dollar
one of the safe, and little noticed bonds in TINS
market. the Kansas City Southern j per
cents. first mortgage. This road ii may be re-