The Indianapolis journal., 1903-07-05

.
as the head of the combination. The Nor
gan influence has been hostile to Mr..
Schwab for long time, and the latters
unfortunate connection with the United
States Shipbuilding affair doubtless was
used as a means for curtailing his influence
ia the affairs of the United States Steel
Corporation. In the United States Ship
building fiasco Mr.. Schwab, as has previ-
ously been asserted in this correspondence,
figured more as victim Of sharp promotion
practices than as party 10 the hagrant
of the combination. The
appointment of receiver last week for
the United States shipbuiidihg. Company
was received without comment in Wall
street, that outcome OF the suit having al
ready been discounted. The incident served
only to emphasize distrust OF various other
organizations that were formed at the
height OF the merger craze.
1t is declared on very trustworthy author
ity that the reduction of the Standard OIL
dividend at the last period was intended
for market effect and had no relation what
ever to the earnings OF the company. 1t is
asserted, indeed. that the Standard Oil
Company is now earning more money than
1t ever earned before, and the chances are
that the reduction in dividend will be made
good at the next period. Standard oil stock
lately has been advancing. 1t reached this
week level around $3.50 a share. Every
time time the tn ste stock breaks 50 or 40 points mem
their holdings-buying Ii for their wives
and mothers. Confidence in its future
amounts almost to a religion With members
of the Standard Oil party. There Is very
little of the stock in the market.
The Western bull party in grain Is talk
ing of Decent corn on this movement The
statistical position of corn and the outlook
for this years crop are bullish in the ex-
treme-bullish. that is. with reference to
the price OF corn and bearish with reference
to the granger railroad stocks. With the
most favorable conditions from now on
the corn crop will be ripening late In Sep
tember, and if It escapes serious damage by
frosts it will be a miracle. There will evil
IDENTIFY be frost scares at any rate, and for
purposes of speculation they do almost as
well as actual frosts. The Western contir-
gent has made great deal of money bull
ing corn up to this point, and is still bulling
it; it is logically bearish on stocks, espe
cially the granger railroad shares. The
next monthly government crop report, to
be issued on July TO- will be awaited with
great deal Of interest. 1t will contain
the first government analysis of this years
corn crop outlook. Private crop advices re-
ceiVed in Wall street are so susceptible OF
speculative coloring and so conflicting on
from which to draw intelligent conclusions.
II must be said, however, that personal OBJ
servations of Wall street people who have
been travelling through the granger coun-
try confirm the unfavorable advices re-
ceived from Chicago and other grain mar
ket centers, and which, for awhile, were
open to the suspicion OF being exaggerated.
Thanks to the Intervention of the Stand
ard Oil interests the Pennsylvania Railroad
Company's fiotation of $90,OO0,OO0 new stock
has been an extraordinary success. About
80 per cent. or sS10Oo,OoO Of the entire
amount was paid for by subscribers cash
down in full, instead Of by installments.
This enables the Pennsylvania to cancel the
| loan of s45.Oo0,Ooo which it made in Wall
street last January at AZ per cent, leaving
| $685. 100000 of the proceeds I'm its treasury
| available for further progress Of its ex-
| traordnary improvements. There was a
| feeling of great relief In Wall street when
| II was heard that the Pennsylvania hota-
| tion had resulted so successfully. The
most striking feature Of the transaction
| was that 1t was managed without any dis
turbance whatever in the money market.
| The payments for the new stock were made
| on the eve Of the closing Of the fiscal year
| most always marked by flurries in interest
rates, and 1t was only natural to expect
| that with the Pennsylvania transaction in
| cluded the tiding over Of this period would
be fraught with considerable dificulty.
| The contrary result became a matter of
| much favorable comment and went a long
way toward restoring confidence in the gen.
eral situation. Those who were shrewd
| enough to realize when the new Pennsyl-
vania stock was announced that the placing
of such large amount Of new securities
| would mean a decline Of % or so points in
| the Pennsylvania stock and a bear market
in the interim, profited immensely by their
foresight at the expense of persons of
duller perception, and these same people
| are now insisting that Wall street Is COM
| mitting a parallel blunder by failing to see
| that the successful placing Of that stock
Some OF the most conservative houses in the
street are urging Pennsylvania as an at
tractive investment on these prices.
| XXX
Wall-street interests have been very con.
fident Of currency reform legislation this
year. Several months ago ii was the in.
formation of prominent bankers here that
| a special session would be called for that
purpose. either in September or October
but that seems to have glimmered out OF
prospect and the financial community now
| is less confident Of such legislation at the
| regular session than It was a few weeks
ago. The recent expressions of Mr.. Can.
non, the next Speaker of the House, de.
claring himself so strongly against what
In his picturesque language, he calls 'rub
ber currency" are variously interpreted
here. Those who know Mr.. Canon best
strongly suspect that he has taken thi:
method of serving notice on the Senate tha
the dignity and independence of the Hous,
ship and that he is so much
| opposed to the currency reform legislation
as determined that the House shall partici
pate freely in the framing thereof. 1t Il
known, OF course, that Mr.. Cannon is nat
urally opposed 10 the wishes of Wall street
| If for no other reason than that they ar
| Wall streets wishes. But, making due al
| lowance for that, there is a dispositio,
here to believe that his recent utterance
have been more boastful than sincere. de
| lvered, however, with some such ulterio
motive as that described. The necessit
for currency reform legislation may not b
as urgent after all as Wall street suppose
several months ago that il would be- TIL
extreme apathy of speculation, owing I
which the demand for money for purpose
of speculation is greatly reduced, togethe
| with the prospect of only a moderat
crop yield, make it seem probable that tn
| autumn can be tded over without seriou
|, | stringency In the money market. 1t is DOS
, sible now to borrow time money carryin
: over the end Of the year at and 51z pc
| cent. The most conservative interests 4
, the street would greatly deplore an out
. burst of bullish speculation at this time
Bank loans need to be heavily reduced.
, bull market was started now the pipe
would have TO be paid this autumn and las
! years trouble would occur all over agar
whereas IL speculation can be kept With
bounds until late in August or !n Septem
. discount" with advancing prices the the
3 definite nroSpect Of cap, forfabIa 49,,