The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-12-14

ARE PREPARED.
| R.sa Quietly Selling Stocks Be-
low Market Value.
|..,,y N THE INTERIOR NOT MOVING
~ Loaned on Lands, Grain and
WI .s. J, and Hartman Truce
Western Railroad Situation.
n.Aert N. nurnett.l

sy Robert N. Burpett.)
" pecember 1s.--Cstaft specially
~ ~ ~ the leading banking inter
tnH ~ the present money situation as
30 'ss W., ope and that they intend to be
49, ,or ANY emergency that may
i'''' us clear from several significant
ials .,ts which have occurred this
kR's'ro ma OF these was the offering Of
EYFl 1ssred bonds of prominent rail-
n's-w ...,sples around among so-called in
~ brokers aud through other chan
e. discount Of fully IL per cent be-
2 ,rrrent market price quoted on the
II change This is not hearsay, It is
~. reality. and 1t Is regarded as mean
~" ~, the bankers who loaded up with
y. v,nt to get their money out so as to
~ 10 use It IN other ways in case a
.-.,,,ncy should arise.
~ coyious reasons I omit the names Of
1. ,Amrlties which ! heard mentioned.
:. METHOD OF hawking" them around
=. Ms Is the true description Of the pro-
',,I,.-Was TO invite brokers to place
n VA hts Of half dozen or a dozen bonds
~, their clients, with the excuse that
~ A,d an opportunity to get them cheap,
,,.,,s Of pull, but they were cautioned
I, !, mention the fact publicly. One Of
M issues was recently put out by a
& s..r,lsebt Western railroad and the under
r,ltlTr syndicate, # Is supposed, had TO
Az he bulk Of them because the share
H ss5ers or public dfl not respond.
WINE there Is g possibility that stocks
-,y save still ruder shake-down before
4, I'd u the year, n connection with the
sltr a bank loans preparatory to the
i,rrsy disbursements than any that has
.i.1s vtnessed recently, leading 6nanciers
Nj nj TO cope With the situation. They
EAnk enough money for all legitimate re-
,.Irenents Will be forthcoming on January
"A 4 IFS assumption IS correct the ques-
4anItrlsrly railroad bonds, are not seeking
lovsr investment basis. II true, this
b ma furnish ar additional reason, besides
M tboye mentioned, for the urgency with
rtA rev bonds are being privately press
81 Il IN sale, while the price Is being artl-
.ally maintained on the exchange
A NJ met that time money Is now on a
b NJ cent basis the country over, and that
dns bankers predict that It viii remain
q, %, SIX months to come, would Indicate
EAa 1 81 to 4 per cent basis for bonds is
sD hgh-Os at any rate IS too high to at
%hia public buying. If this view becomes
ss1aently general 1t will result in more
y sss lquldation OF many kinds Of bonds
<Sala net the holders no more than the
l-@nt above specified and people will
krils up their minds to shift their money
sp Channels paying larger return on the
.INtnent. The time loans which brokers
n Citing on a basis OF 6 to per cent
riy Of them on bonds, are simply secured
\ @lateral SO that so far as wall street
aa'efnsd 9 per cent or more can readily
Rtured Oh safe investment,
sNaenee that the great army Of IN
aSt Ie not this year anticipating the
,auy disbursements by large purchases
@nds IN advance, as they frequently
previous years, broker said today
~ pot a third as many purchases had
e nsde thus far IN December as during
@Tesp9ndlng period Of last year.
Asn indication that we may be drifting
somewhat lower investment basis
W y lover price for securities netting
~ NE nate OF Decentralization may be
W. 70 the sale of $4,000 of So per
at trust certificates by the Pennsyl-
~ ralfoad during the week on a basis
Y about ~ per cent interest TO the
~. Ihe last car trust issue put out by
~ =. Ynpany was on a basis OF 3I5 per
~ ~ the usual commission, which
t- =. \, nat the company had to pay a tlife
,aea per cent, on the basis Of par That
In. =. " leading railroads Of the United
/; n. NV ~ 9ould Issue Its new securities at
- ahaaYantage Is very signiticant This
-psv, Of course, can readily raise an
ICY y needs for any purpose II is
4 aIIspie 70 assume, therefore, that its
1, ,'' ~ recognize that the investment basis
I%s OF less changed during the last
~ y
M lpcve position, no doubt. encourages
belief among some that all kinds Of Sc
Aas are likely to work lower, but II
= bankers say Is true, is 1t not safe to
!" such conclusions hastllyf A leading
sN Who Is recognized by his ASSOC
: as a dyed-inthe-wool bear, expressed
P'aion today that when Wall street
Il Ou' Of the difficulties connected with
u'le7 narket-which he said 1t would,
fe'ASps mot without a more severe
" 'nsn the community has already
~ expected to see stocks go higher at
I' after the beginning OF the new
De also thought the way might be
~, demonstration IN the market
b us spring. He based this opinion
u ne enormous earnings which the
II - railroads, and also some Of the
"oud show early In the coming
result Of the great harvests. The
e Of course, would respond
.sas to any upward movement in
49,. Iat such a demonstration may be
~ ny the leading interests is pos
r ,yause all Of the pools are still car
- Naes Of stocks which they hope
H.