The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-04-19

weekly statement OF the Imperial Bank OF
Germany and the large overSubScription re-
ported for the new German loan were re-
abundance Of funds at that center. This
weeks stock market had a turbulent ana
demoralized beginning and developed a
quickly manifest on Monday that the last
half Of Thursdays session. since which
sion. had failed to show the full effect OF
the Northern Securities decision. The mar
kst was subjected to violent liquidation all
day Monday. influenced by a drop OF over
nine points in the price Of Northern Sscuri-
ties in the open market. Great alarm was
expressed on Monday as TO the far-reach-
ing arrangements and relations in the rail-
road world. besides the immediate conse-
quences to flow from the diss luton OF the
Northern Securities corporation itself.
FEARS ABOUT DIVIDENDS.
II was feared that dividends would have
to be suspended on Northern Securities in
any event, and the action 10 be taken by
lenders of money where Northern Secur-
tiles stock figured as collateral was dreaded.
Another ground for alarm was the question
OF what balance Of control OF the cOnstifu-
Cnt companies might result from an eN-
change Of old stock for the present North
ern Securities stock. in view of the con-
siderable distribution of the Northern
Securities stock, supposed TO have been
effected. But beyond this special sppllca-
ton of the decision lay n broad field for
conjecture as to its possible bearing. on
the whole question OF holdings OF railroad
STOCKS nN competing rallrOdO companies
The Union Pacific holding OF Southern Pa
clEc, the New York Central holdings of the
subsidiary Vanderbilt companies. the Penn
sylyania holdings OF B.. & o. and Norfolk
q Western and the Baltimore & Ohio hold
inck jointly with the Lake Shore Of Read
inE as well as the condition of centraiized
control in the anthracite Industry and the
supposed Rock Island control OF st. Louis
e. San Francisco were the concrete eX-
would be directly interfered with. Many
other projects Of combination and central
ization have been understood to be awaiting
a favorable decision in the Northern Secur-
tiles case TO be rushed into a contamination
The first impression OF the decision. there-
fore. was OF danger that the ground was cut
from under a very large extent OF eNistins
financial arrangement
RELATED RECOVERY.
The notable recovery In the stock market
during the latter part OF the week is IN
doubtedIy due to the perception that the
long previous decline In prices has been due
in part TO an apprehension that the North
ern Securities Organization would not stand
the test Of judicial proceedings. There has
been perceptible a growing impression in
the financial world that the 'community-of-
interest policy has been responsible in
part for the multiplication OF new securities
and has helped toward the condition of con-
gestion in the market which is regarded as
the leading unfavorable factor in the pres
ent situation The condition of the money
market which has resulted has operated in
itself as an automatic check upon new
financial projects. and some sense OF relief
is felt over the promise that future corpora
ton and syndicate DEMANDS on the money
market will be curtailed- The policy OF pur-
chase OF control of railroad properties at
extraordinary prices. with issue of new Sc
curities on the collateral security Of the
purchased stocks. Is felt to have a limit Of
safety and wisdom. which there was danger
OF overstepping in the course which the
process was taking before the check was
applied Furthermore, the growing difficult
~ of marketing new securities has taken
the edge OF the formerly prevailing appe-
lite for buying up control Of railroad sys-
tens
OUT OVER NIGHT"
Security for railroads left out over
in the picturesque phrase OF a prom
ineat capitalist during the Burlington pur-
chase era. is no longer a matter Of such
solicitude, and even minority holdings of a
compact nature are felt secure Of control
in existing conditions These are some OF
the revised views Of the Northern Securities
opinion of Wall street in its qui-ter mood.
The eliminating slump Of Monday follow
ing the preceding long decline was felt TO
prepare the market technically for a recov-
cry. so that professional operators have
largely covered their short extracts. and in
some cases have coSS IeaC 81 the market.
NJ growing ease OF the ueoaey-supply fs-
for speculation and 'hc extensive
liquidation OF Monday have allied to tie re-
lief Of the money market The first Gov
eminent report On the winter-wheat crop
made such an encouraging showing as to
warrant a presumption CT large yield. and
earnings reported during the week
have shown remarkable increases over last
year. The March foreign trade report shows
a notable expansion Of exports and the out