New-York tribune., 1902-06-15
fnanrla..
The Financial World.

The volume of business on the Exchange rom,
tinues small-distressingly small to commission
houses; and were it not that the prospects for
the second half Of the year are bright thsrs
would be reason for feeling blue These Dros,
poets we're dwelt upon at some length last vast
being, briefly, the excellent crop outlook an4 4b.
better conditions abroad
In the market now there IS quiet absor,tio
Of stocks. mainly of an investment characta-
1t prepares the way for liveer work later rha
proof that the technical position OF the marie,
is sound. has been afforded by its frrnpess 3,
late in the face of many things which sho,I5
have depressed it. Had the position not haon
sound. the serious industrial disturbances shopI+
alone have sufhced to force an amount OF seIIin.
which would have put prices many points beIoy
the present level
That these disturbances did not have such an
effect, even when aided-in respect to their do
pressing infuence-by an extreme dunnss.
which extended to the foreign markets also
thereby Indicating some general cause-.hs+
prices either held firm or actually advanced
shows that stocks generally have lodged wbara
they be taken care Of. The investor has
them The investor may be the small indiyfduar
or he may he q large corporation In either
case it is clear from the recent course Of the
market that he can take care Of what he has
The contention that there is unsoUndness. Or
that the market Is not natural. because so much
Of the big buying has been by one corporation
buying up another, has an element Of truth in
it. There is. indeed. an obvious tendency 10
overdo this buying up business On the other
hand. it must be noted that most Of this buying
has been in effect merely 9 transfer. or con-
version, Of securities. When, for example the
Pennsylvania bought control OF the 3. & O., il
deposited the stock so bought in its treasury
thus permanently removing it from the market
But in place Of this it issued It's own stock
which has gone into investment boxes It did
the same when it bought control Of the Norfolk
and Western. and Chesapeake & Ohio.
Here then, we have simply a considerable
dirninution Of the stocks of several companies
and increase in the stock Of the one pur-
chasing company. Now unless these purchases
were bad bargains. which is not in question
here, the speculative position is very distinctly
mlde sounder by the conversions whereby the
purchases were financed.
The New York Central has done the same
thing. and so have other companies. These
transactions have each to be considered on their
merits, as business operations wise unwse;
the point made here is that the market is not
made insecure because one large corporation
has purchased control Of smaller one; seeing
that the purchase money is not borrowed from
banks. but is obtained by sale Of the purchasers
securities. Somebody got money by selling GER
tain stocks he owned; and conceiyably. ne rein
vested the money in what the purchaser had 70
sell. 1t makes difference whether it was the
same people or not: the general effect is the
same.
The quiet absorption above referred to must be
going on in Union Pacific or that stock could
net have held up as it has since it came TO be
understood that the next dividend would not be
increase 1t well known that Mr.. Harri-
man was opposed to an increase under any con-
ditions of crops. but it was thought that other
directors favored raising the rate to per cent
in case the crops turned out we'll Now it seems
TO be generally acquiesced in that the increase
will have to be waited for. Despite this gen
eraI understanding Union Pacific has been
strong under very steady buying; and these who
ought TO know say that the bulk Of it is
European account. As a matter OF fact people
over there could not very well make much
better bargain. They well satisfied with
per cent for their money; and they get that,
with the surety OF future increase, in Union
Pacific. To the investor who does not want 10
take chances good or bad the common, the
fixed per cent preferred may he recommended
The course OF Reading since the strike started
may be said 10 prove. what has been asserted
frequently here that some powerful interest
has absorbed that stock. The bulk Of II has
found Judgement somewhere. In due time this
non-dividend paying stock, which had been ad-
vanced above 60 on what seemed purely specu-
Iatfve operations, fell back only few points
on the outbreak Of most formidable Industrial
contest has since recovered that loss, and IS
now strong at So. That would be simply i'm
possible if the mass Of the stock had not 0een
practically removed from the market Some
people believe that il has gone (under cover. OF
course) 10 the Pennsylvania; others believe that
the same combination Of capitalists VINO so long
held Jersey Central are the owners. Some one
has it, that is sure.
In respect to the strike itself. it can only be
repeated that il is finish tight" 1t viii be
all the shorter and more decisive If outside in
reference can be kept off. The operators say
thev lost the last because Of outside interfer-
ence and the only result has been TO bring an
other on their hands. This time. they are oouho
to fight the thing through, and they dent eA-
pect to see the end for some time yet. For'u-
nately we shall not have to wait TO the ehd
to get anthracite again. as mines viii De started
UP one by one as men can be secured The pup
lie is specially interested in getting fld of tiS
horrible bituminous smoke. which poisons the
air b!ots out the sun, damages everything gen.
orally and particularly the womens dresses
and makes men swear
In the markets movements the latter part OF
the week ST. Paul was a leader. and missouri
Pacific came in as a second. The Western men
are credited with the operations in the former
ST. Paul being favorite stock of theirs anu
rather easy to manipulate as there IS just
enough of it left outside of investment hollHss-
10 make a free market. In time it will prooaoS
follow Northwest up-and out of specu4auoL.
but il is a long way from that yet. Mr.. Gouid
is credited with the remark tNat Missouri "a
cifc will be one OF the leaders Then the InarAe'
gets into activity again. which he looks for II 70