The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-04-13
OF NEW MERGERS
ACETATE WALL STREET.
l.. n y. FURRY STARTS NJ.
NERVOUS STRMISES.
advance. After Somewhat Favor
able Bank Statement, Is Fol
loved by Realizing.

New York. April l2-The situation center
ing about Louisville and Nashville was the
subject of Keen interest in Wall street to-
day. and kept the market fever.sh and I'M
settled. The jump OF over 10 points in Chi
cage and Eastern Illinois and the rise in
Evansville ard Terre Haute revived ru-
mors of projects for a Chicago outlet for
Louisville. and he conferences in progress
snd known to the street strengthened the
impression of an impending parting control
OF Louisville and Nashville itself. There
was 4 renewal of the activity and strength
III colorado and Southern. which was at
trlbuted TO the working out of plans for the
extension of the Rock Island connections,
indicated by the purchase of the Choctaw,
Oklahoma and Gulf. Otherwise, the princi-
pal strength was in specialties. The buoy
ant rise IF Canadian Pacific to 10. with a
relapse of a point, was not explained. The
strength of the various Rubber stocks was
due TO reports OF proposed mergers, as were
the movements in Virginia. Carolina Chem
zeal and Cotton Oil. The rise of over 4
points in International Power was due to
the expectation of stock subscription rights.
The strength OF III" market was not gent
e,al. and the advance after the bank
statement was met by realizing. SO that
the closing was irregular. The cash
changes in the bank statement conformed
closely to the estimates.
Outlook for Money Not Clear.
The loan decrease was larger even than
hoped for. but the knowledge that large
loans werc transferred to the trust COM
ranies ana To foreign lenders left the out
look for money by no means clear. There
was a remarkably feverish and erratic
stock market this week. which is attributed
in Wall street &c the speculative operations
of a group of wealthy men who have rea-
lized greai fortunes in the iron and steel
trade. and who Were controlling factors in
the constituent companies of the United
States Steel Corporation before the forma-
lion of that concern. The upward course
of prices. which was established last week
was interrupted on Monday by the fears
of money stringency. The large exports of
gold, for Tue sday's steamer threatened a
total wip.as out of the surplus reserve of
the banks. whilh was cut down two-thirds
as a resu!t of the transactions of last
week. The rise in the money rates shut
of further gold exports and made it profit
able for foreign banker To negotiate heavy
loans in foreign money markets to place
here.
The trust companies also were large lend |
ers at the higher level. as they are not
subjects to the same legal restrictions az to
the maintenance of cash reserve, and are
thus able to leave their cash on deposit
with the banks TO figure in their cash re-
serves. while taking up the banks loan. :
has been the subject of much comment and
in connection with the active
speculation. which is fostered by the re-
sources thus made available. The money
market has. nevertheless. been unsatisfac-
tory all week. and subject to occasional
f1urries. The leaders of the speculation seem |
TO I've unaffected by these furries. and 1t is |
believed they are protected by heavy loans
on time. 1t was suspected that the early I'M
settlement of money was due partly to the
taking out OF large time loans in this in
tereSt. !
Southern Lines Center of Interest. I
The center of the speculation shifted this
week from St. Paul and the Western group ;
TO the Southern Railway field. The move
ment in Louisville and Nashville became
so sensational that the fear arose that the !
of the Northern Pacific cor
nor last May might he repeated. The de-
tsrmined reticence of all the parties In in
terest as to the actual conditions existing in
the stock added to the uncertainty. The
theory advanced was that adj
vantage had been taken of the strength of
the stock To market the newly authorized
increase of S.C0.00o of stock. The formal
ity Of application and listing of Il new stock
on the Stock Exchange requires about
a month more. Meantime new stock is not
a good delivery against sales made on the b
Stock Exchange.
1t was supposed that the speculative pool
in the stock had discovered this technical
short interest in the market. and. by Fore
Ing s up 'e ntoI pre- 6eis Was vas cGmpeelii ing, the de-
ening the absorption of the control. The
announced purpose to apply a %Tortion Of the
new stock issue to the purchase of the
Knoxville. and Northern revealed
an incursion into the territory ' of the
Southern Railway Company. There were
rOrJtcIslrtS nat control OF Il TOau into I III l.
raco, running north Of the Ohio Rive. also
sought. Coupled with the enormous
dealings in the stock. these facts ami sur
misses gave color to the suppositiou OF a
for control. and the activity and
strength in Southern Railway. as though
in sympathy. seemed a corroborlIiol. The
announcement of the purchase OF TIL, Chcl-
Oklahoma and Gulf and the SUPPOSE
ion that il was in the interest of the Rock
Island was additional incentive to credu.lty
IN the progress of plans for extension of
of interest and strengthening CT
by existing railroad systems, fy
control of outlets and extensions.
Old Systems Are strengthened.
The activity and strength of the Gould
ponds were supposed to be due to the prog
ress of plans for completing the systems
to the Atlantic Coast. 1t Is a mat
er of observation that PRACTICALLY all of
he railroad construction of the present
,ra OF industrial activity is devoted to eS-
ension and strengthening of existing sys-
ems. rather than to the formation OF new
;ystems. 1t is argued that this tends to
insure against rivalry and destructive COM
The postponement of the British
statement defers the clearing up of
foreign money situation. The announce
nent on good authority that Russia will
eek no further loan in Europe this year
'emoye- an apprehension that the recent
oar placed in Germany. Belgium and Hol-
and was merely preliminary to a large
Russian loan to be foated in France. The
mminence of the Government report on
he Arril lst crop condition kept that fac
or in the background in the stock market
Turing the week. The disappointment indi-
.ated Yesterday in the grain markets was
My slightly reflected in the stock mar
let.
The speculation in stocks has been sup
by an active buying of some of
low-grade speculative bonds at sharp
dvances in price. United States IS and;
Id Is registered advanced u per cent and
he e / ner cent. The IS coupon decljned