The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-10-19
OF WALL STREET
HINTS ABOUT THE COAL STRIKE AND
THE CONTROL OF READING.
Big Syndicate Operations of the
Month-SOundness of Legitimate
Business-Coal Trusts Plan.
Special to the indianapolis Journal.

NEW YORK, Oct. 1S.-Apropos of the
coal strike an arrangement of a few facts
in chronological order touching Reading
will be of general interest. The great cap
italists who were represented in the Read
ing Railroad by the Morgan voting trust,
having need of capital in other enter
prises inadvertently parted with the con-
trolling interest in the property. AS the
time approached for the voting trust to
expire they started in TO repurchase con-
troll. To their alarm they found others in
the field, and whenever they undertook to
buy any considerable amount of stock the
price moved up sharply. Reading common
crawled from 80 up to 20, and still the con-
troll had not been restored to the former
holders. Gould, Rockefeller, Carnegie and
others composing the Gould-Rockefeller
party were evidently seeking Reading as
a seaboard outlet for Wabash.
Then came the great anthracite coal
strike, which was preceded by six weeks
of uncertainty, which put Reading COM
mon down to 5shs. Reports were rife in
Wall street at the time that the strike was
part of a Scheme to frighten weak holders
and enable interested parties TO secure
cheap shares. The strike continued for
five months. and during all that period there
was uncertainty in the street" as to
where the real control of Reading lay.
Meantime the voting trust had passed a
dividend on the preferred, thereby prolong-
ing it's life two years on a technicality, al
though II was announced that the trust
might not take advantage of this fact.
Meantime competitive buying had advanced
the price of Reading common to about so
In the face Of tremendous losses due to
suspension Of mining operations. One day
last week a big Spectator transferred 10O,-
coo shares of Reading stock to Morgan,
who was said to be acting on his own be-
half and for account of the Pennsylvania
Railroad. 1t was further stated as a piece
of current gossip In the street" that the
transfer of that 100000 shares cinched the
control, placing it absolutely with Mr.. Nor
gan and the Pennsylvania. Within two
or three lays thereafter the coal oper-
ators relaxed sufficiently to make a pro-
posal for arbitration. thereby paving the
way to the end Of the strike.
I leave my readers to draw their own in
ferences from the above complication of
events conspicuous in Wall street history
in the last six months. The inside story of
the strike would be the financial sensation
of the year. Congress will be asked to
probe for it.
October is filled from end to end with big
syndicate operations which have dragged
heavily or the banking resources of New
York. Syndicates behind colossal schemes
of consolidation require at least $50, 900, 900
this month, which the banks must provide,
no matter who suffers. 1t so happens tina
nobody has suffered TO any serious extent
except the spectators who were forced to
liquidate and pay off loans in order that
the big ones might be accommodated.
1t is by no means sure that financial relax
alton will Immediately follow the surface
conclusion of these big deals, for the syn
dicates will still be loaded down with a
mass of securities for which a market must
be found before they can stand from under.
The money drawn from this center for
crop moving purposes by the South and
West will not return in considerable vol
ume until the LIST OF December, and easy
money is not looked for until the turn of
the new year. Vast sums will naturally
accumulate here for the payment Of jan
uary dividends and interest, and most of il
will remain in New York after the distribu-
ton. The market leaders, while not dis
couraging buying, say IN confidence that
movement before the beginning of the next
calendar year.
The group OF spectators known in Wall
street as the standard Oil crowd sold
stocks at the beginning of the slump and
sold all the way down until about a week
ago. when a change of front took place
and buying or a scale ttaking stocks on
every half point or point decline) took the
place of sales. This process has resulted
In the accumulation of large lines of Stand
ard Oil specialties and the concentration of
the securities in strong hands again. One
Standard Oil bank took in SIS .O0.00 in ten
days from the clearing house. an amount
supposed TO represent the winnings OF three
or four members of this powerful coterie.
Many of the stories told in Wall street
these days OF the enormous losses suf-
fered by the bull leaders during the slump
are entirely false or misleading. Ii Is un-
questionably true that great numbers of
this class Of operators did sacrifice their
stocks, but the losses they met with were
In most instances only in the nature of
paper profits which they had failed to Sc
cure. II Is doubtful IL any OF the leading
bulls ended the campaign worse off finan-
cially than when they commenced. They
only failed 10 get out in time. They have
only themselves TO blame for this. for the
banking community gave fair warnin that
there would be tight money during the
months of October and November, and for
\ a full month before the break started they
raised danger signals all through the finan-
cial district.
There is thought 10 be no love lost be-
| tween James II. Keene. the great sp Gu