New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-03-23
tlunuriai.
The Financial World.

Of
town banks. To do this, they draw ort -
FUNDS which they had on deposit with the clear
ing mouse banks; and the latter. consequently
report decrease in deposits and loans
Each week lately has brought out some nan.
S'"eiHe' Win corresponding request for new
money to carry it out on the part Of nron,
ment corporations. railroad. traction. ana =,
uusrlaL entirely new enterprises the public IA
In no temper to consider; but directors Of az
isting corporations seem to find no difficuIt, a,
securing the necessary banking support for
new propositions. 1t is probable as Wen fr0r,
the movements of the stock as from less prom
lnent occurrences. that the Rock Island Com
pany will soon be before the public with n,
new plans.
control or this property, so long identified
with the house of Flower & Co. has been sbir,sa
10 what is called in the Street the First Ma
tonal Bank party, IN which the Moore Brothers
are now recognized as leaders. When the latter
are spoken OF in connection with any important
measure. it also implies the former. II is vsrv
rich crowd and it is TO be assumed that the
financing of the Rock Island schema vvba+a,-a-
it may be. will be done in connection With 81
FIRST National 1t is further understood thar
the Rock Island system viii be considerable
extended in the direction of the Pacific Coast
Doubtless existing Pacific Coast companies
are not particularly we'll pleased at the prospect
of new competitor. but it seems to be in thA
regular line Of march that railroad systems
having their starting points on the Mississipn,
should extend TO the Pacific Coast. In the course
of time. this development will put the railroad
system of the country into two grand divisions
Atlantic and Pacific. with the great river as the
dividing line.
Some large buying Of st. Paul. following the
liberal marking up Of the quotations for Rock
Island, gave rise TO talk about new schemes in
connection with that company. These runors
may or may not be true; but speculation has be-
fore this put St Paul much higher than IL is
now. and it has afterwards tumbled back again
much faster than it went up. IN respect n
Rock Island however. there has been a steady
accumulation of the stock by a particular in
terest, for specific purpose; and the ease with
which the price is marked up in the market, in
dicates how complete this accumulation has
been. There is still an open r-arIet for St. Paul
as there is for Union Pacific, Southern Pacific
Atchison Baltimore and Ohio, or Southern Rail-
road; but for Rock Island there is not. any more
than there is for Jersey Central. which was
accumulated by the same crowd.
The advances in the two stocks mentioned
gave a stimulus 10 other departments OF the
railroad list and prices generally advanced
Southern was rather an exception. this stock
being kept down by the liberal realizing which
I'oN PIeiNS III II NIFu IKE 4utLu recently
raised to per cent The coal stocks would
certainly have shared in the forward move
ment. had not the uncertainties Of the labcr
situation caused them TO be temporarily neg
lected- Should there be a strike. and the stocks
decline. p favorable chance will be afforded TO
buy them.
Outside Of the railroads proper, much interest
was taken in the affairs OF the Metropolitan
Company. The stock Itself moved but little:
it was the meeting vote on the lease. ETC. 10
which attention was directed II may be as
sumed that the lease is made and will become
operative; because the practice of the courts has
been in these contested cases, to sustain the
formal action of the stockholding majority but
seeing to il that the legal and equitable rights
OF the protesting minority are not invaded. Tbs
easy way in which the chairman of the meeting
brushed aside a lawyer representing the pro-
testers has been unfavorably commented upon;
and perhaps as 4 matter Of expedisncy il might
have been better TO have suffered a little more
time 70 he wasted in OratOry. Mr.. Widener.
however is an old hand at the business OF pre-
siding, and having measured the mental caIibre
OF the legal luminary before him. became a
triie impatient. 1t may perhaps be Of interest
10 state ;iat in former times stockholders were
held to have no legal voice at all in matters
such as this, the directors assuming all au-
thority; ard It required several years of bitter
litigation Gin connection with the elevated roads,
to establish the principle that a majority vote
of the stockholders. given in formal meeting.
was necessary to validate the action of the d.
rectors.
In this case. the courts may hold that :he
demand for certain information made by the
minority stockholders was a proper one and
must be complied with. This would not in
validate in any way the adoption of the lease
and he formal consents II the ma iOrfly.
and of course should not for if SO per cent OF
the stockholders of a company can be found
willing to vote more less bIndly. relying
wholly on the directors. 1t is their affair. AS
Stunning. therefore. that the lease is made. Metro
politan stock becomes practically a : per cent
preferred stock while Metropolitan Securities
stock becomes the common, and the market
speculation will be mainly in that. as soon as
it comes the Board.
Among the industrials. the U. s. Steel stocks
have been rather quiet. and tribe weaker
The company is already calling in the preferred
stock pledged for conversion into the new
bonds. and giving receipts therefor. Doubtless
the issue OF the circular will follow the COM
pletiOn of this call Some lively work in Colo
RADIO Fuel stock has directed attention 70 the
marketing Of the last issue Of bonds made by
this company the operations in the stock being
calculated to assist this distribution. II is IN
derstood that the mana sc nent of the company
will be changed in some important particulars
at the next annual meeting. Mr.. Gates and
his friends are now the parties chiefly in in
terest. To them. also. is credited a good deal
of the work done the bull side OF the mar
keI the past week
Nothing new has so far come out in respect
to the Northern Securities Company. the testi-
mony given in the Peter Powers suit (vho is
the individual hearing this interesting nare?)