The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-11-20
AND COMMERCIAL.
"WEDNESDAY, Nov. 10

A further rise Of over 10 points in the
Manhattan Elevated shares In the first half
hour of trading to-day threw an air Of
probability around the rumor Of a corner
in that stock which was current yesterday
afternoon. The Street was scared and
every stock on the list except Manhattan
declined sharply. The market had been
decidedly weak before this by reason Of
the various depressing factors which are
matters of common knowledge A the
day wore on, however, the absurdity Of
the corner story regarding Manhattan
was recognized, and the firmness with
which the stock maintained it's rise and
the character Of the buying in II led to the
conviction, which before the close of bust
ness became very stout. that the control
Of the Manhattan Elevated system had
either passed or was about to pass to some
other company on the basis of guarantee
upon its stock Of rate OF dividend some
what in excess Of That now paid. The
various theories and rumors which pre-
vailed over the matter tended. naturally.
to strengthen the other traction shares:
and the ease with which these shares rallied
alarmed operators for the decline In other
stocks, so that the rallying movement be-
came general and nearly all securities
closed at good gains in price for the day.
Up to the close of business no official
or even semi-official explanation was ac-
corded for the movement in Manhattan.
The belief of good judges is that il the
Manhattan property has been leased, or
the controlling interests in il have agreed
to lease II, the lessee will be nett her
the New York Central, the PENNSYLVANIA
Railroad Company nor the Metropolitan
Securities Company, but the Inte--
borough Rapid Transit Company-thst
Is 10 say, the company which is to operate
the new subway. II il a fact at least.
that interests connected with this COM
pany hav" recently been large buyers Of
Manhattan stock, and their company could
obviously operate the elevated lines to as
great. II not greater, advantage than any
other OF the corporations that have been
named. The price demanded by Manhat-
tan stockholders for their property can
hardly fail to be large, and if per cent.
dividend ia guaranteed upon the stock.
as Is rumored, a quotation Of $50 for the
Manhattan stock does not seem high
On the other hand. considering the various
up and downs OF the Manhattan dividends
and the vast needs Of the property for
repairs and improvements. a guarantee
of an annual distribution Of per cent
upon its shares seems excessive and until
some positive assurance appears that il
has been offered, cautious operators in
the Street will be somewhat slow to believe
that such is the case. II is a fact. too.
now recognized by every one, that the
probable stability OF guarantee in an
arrangement of this kind is now much
more closely scanned than II was a year
or 40 ago. Collateral trust bonds and
similar obligations Of holding or guarantee
ing companies ara not now in as great
favor as formerly But criticism upon
the new plans affecting Manhattan should
be deferred until they are definitely
announced.
The days squirt in prices did not at all
change the views held by conservative
banking interests as 10 the financial situa-
ton. Opinions are still expressed in this
quarter az steadfastly and emphatically as
ever that. while prices have had a large
decline and while legitimate business is
still exceedingly prosperous, there will be
stringency in money for at least two months
TO come. and that the stock market Is,
moreover, SUFFERING from indigestion by
reason Of the vast mass Of new securities
it has been forced to swallow Time money
was held at even frmer rates to-day than
it has been, and, though sterling exchange
was easier, ii was because OF the extension
Of loans by London and Paris b1nkers.
The work Of spectators for the rise in tho
grain markets, which has resulted In an
advance OF several cents bushe In wheat
and corn. is viewed with dismay by all
those who are looking for an enlar cement
of our shipments abroad Of these staples
and for an increase, thus. of commercial
bills In the foreign exchange market. A
bull stock market is believed by conservative
observers to be entirely out Of the ques-
ton at this time Scares Of shorts like those
OF to-day in the traction stocks may fire.
qlently be witnessed. but until money be-
comes easy, or the end Of the period of tight
money can he seen to be approaching. a
heavy and sagging market with lower
range Of prices seems the event most likely
to occur Neither must it he held at all
improbable that, in view Of the known
trials which the money market must endure
before the end Of the year, liquidation in
securities might again become enforced
and severe.