New-York tribune., 1903-06-28
Financial.
The Financial World.

,s,,,, toco,,ss OIL the rapers are discussing the
dulness Of Wall Street as one OF the interesting
top.cs of the day. There usually IS a pause IN
business at this season. waiting on Ihe crop
outlook: and there was more certainty tnat
dull spell Of extra intensity would be on Us this
time because Of the seyere spasm tne market
sad few weeks ago. The crop situation. and
Tho outconne of the wild speculation In cotto1.
are the two principal things on which the mar
ket will turn so far as can now be seen The
money situation appears 70 be favorable Juds-
ing from the little disturbance made In the
money market by the Pennsylvania stock sub
scription.
The latter has been the chief, almost the only
tonic Of the week: and this degree Of public at
tention it's importance deserved Until the lists
have been fully made up. the amount OF stock
which the syndicate will have to take cannot
be stated exactly; but it was understood at the
close of business yesterday. that the amount
would be nominal. just the old remnants. which
a big operation Of this sort will sometimes
leave. This is a good thing. because OF the
moral effect. While the syndicate managers
were so well satisfied to take all stock which
might come that they were willing 10 under
write the whole issue at the low figure OF 2ia
per cent: vet i would not have looked well II
il had developed that the investing community
were unwiIli-s TO buy Pennsylvania at 120
The effect on the stock market would have been
very bad.
of course it would not have been anything
like what would have happened if the subscrip-
ton had been wholly a failure. which It was
clearly seen it would be when Mr. Cassatt recti-
fed his error by calling the bankers to his aid
That would have given smash in the mar
ket very near +. it's proportions to a panic. The
Pennsylvania 0O-1pany. not getting the needed
money. would have had perforce TO stop the
great construction works il has under way;
the banks and other financial institutions which
are lending it money. would have been hung Up
with the loans; the public would have accepted
the failure as sure sign that the market
level of all securities would go lower.
The actual trouble was not lack OF value n
the stock. as compared with the price. but that
there was so much of it pressed the market
time wheI the public not ready TO take
it The fact being generally recognized. the
price OF the old stock worked downward IN
way which showed clearly enough what was
going to happen--t would be selling well below
12O when the subscription lists were opened
The syndicate operation averted all this n
the first place 1T made sure that the company
would get its money anyhow. therefore that
there would be no stoppage Of the construction
work; then it relieved the money situation. BY
assuring the creditors Of the company that they
would not be hung up with the loans; lastly. by
making it certain that the stock would all
be taken and placing nine millions Of cash al
the command Of the syndicate managers to look
after the market in the meantime it restored
confidence and checked aggressive operations
for a fall
The latter was a thing to be seriously reck-
oned with; and several times since the syndicate
was formed, the managers have had to make
fight in the market. As late as Thursday last,
when a dash at Pennsylvania stock threatened
TO break it below 123. brokers for half dozen
houses suddenly appeared bidding for aggre-
gate of over $4,000 shares at that figure. Every
body knew where these orders came from. and
that orders for 100000 more could be given be
fore the syndicate would be at the end OF its
nine millions of ammunition. Such heavy artT-
Iery was too much for the bear forces They
quit
In respect to the Pennsylvania Company the
syndicate operation was in the nature OF fnan-
ciaI insurance; and the general opinion is that
no such insurance work has ever been better
done. certainly never at so small cost to the in
surer. For it must be considered that the
house was already aire when the insurance was
placed. 1t goes without saying that the syndi-
cate managers are greatly pleased
An incident Of the week which threw ughr
on some very erratic movements of Colorado
Fuel stock in a staguant market. was the an
nouncement that President Ossood and his two
directors had resigned from the Board OF the
Company. No srnoothness Of statement in The
official notice could disguise the fact that the
Office door had been opened for Mr.. Osgood
with invitation, more or less peremptory.
that he make immediate use Of it. \ variety
of stories were told as to the causes Of this
sudden invitation; but il is characteristics that
one which seemed accepted most probable.
was that the Gould Rockefeller interests (Which
have been in control since the last election
had disclosed to them the concoction of a neat
little plot TO throw the company into the hands
of a Receiver, Of which the recent accident,
by which the company failed 70 have certain
necessary funds on hand in this city. a
part. OF course. if by any unexpected action o.
appointed such Receiver. mere owners OF the
stock would have been treated to another Gates
experience. Whether this story be true or not
people outside the inner circle have no means OF
knowing II may or may not be true; but that
as probable is characteristic. Another story
is that the company is urgently in need Of
money. and that the Gould-Rockefener interests
agreed to furnish it on condition that Mr.. Os-
good resigned. This was intimated in a Denver
press dispatch. That the company IS in need OF
money IS nothing new; the new thing would be.
when it not. II is always m need Of money
has been ever since il was organized: and
even with the best OF management. will be IN
need for years 10 come. But if Mr. Gould and
Mr.. Rockefeller agreed to furnish money On
condition that Mr.. Osgood got out, such certif-
icate of character would scarcely help the latter
gentleman in applying for a place elsewhere
It is possible that the market may nos be as
dun the coming week as it has been. We are