The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-30
MONEY TO NEUTRALITY-SUSPICIOUS.
WALL STREET BEGINS TO TAKE A
LITTLE INTEREST IN POLITICS.
And Some of Its Newspaper Organs
Exhibit AntagOnism to the Roose-
welt Administration.
cpecial to the indianapolis Journal.

wind and water has been squeezed out of
a good many of the big combina tons, but
there still remains enough to impart to the
market situation considerable speculative
interest. 1t has become quite the habit
among industrials 10 pass dividends, which
is by many regarded as the first step toward
| reorganization. More than two years ago
| John w. Gates went on record as saying
| that the next big money made in Wall
| street would be in reorganization. After
| he gave utterance to this septiment he
| himself attempted to float three or four
| schemes and took an active part in the
organization of others, noteworthy among
| which are the Shipbuilding and Realty
| projects. Both of these fotations ended
disastrously to the underwriting and specu-
| lative contingent in Wall street Now
there is open talk that the dividend OH
| Steel common will either be cut in two
stopped altogether. 1t is known that a
| strong party the board of directors
favors the latter course. Much Of the de-
| cline in the shares of this corporation is due
to anticipations of a suspension of divi-
dends on the junior issue. This is not be-
| cause the company is not earning divi-
bends, but there is felt to be a need of
| STRENGTHENING the working capital without
! adding to the bonded indebtedness. The
company is authorized to convert 500 0O0 900
| of preferred stock into bonds and also to.
| sell $5O,0O0,0 coo worth Of bonds. This bond
| conversion plan is supposed to have met
| with total failure, although this is not of
| fcially admitted. and there is nothing to
| show that the management has not pro-
| ceeded to sell its $50. 100000 of authorized
| grounded suspicion that ii has disposed of
| at least a part of this authorized issue,
which may account for the low prices
| reached by the senior securities of the big
| steel trust
| The conservatism of the railroads, which
resisted the temptation to increase divi-
dends commensurate with their earnings
during the fat years, is now being fully
| appreciated. Those roads which made
most generous distribution of net earn
feeling the pinch This is conspicuously
the case with the Atchison. That COM
pany earned from to 10 per cent. on it's
common stock and paid per cent. In the
improvements, extensions and betterments
undertaken by the corporation, ample
need was found for every spare dollar
| and more. 1t was found advisable few
| weeks ago to summarily stop the expendi-
| ture of any more money on the road. ex-
cepting what was imperatively necessary.
| The reason for this was inability to sell
bonds or borrow money on reasonable
| terms. a director of the Atchison has
stated within the last week or two that
in on the payment of dividends on the
| common stock. Union Pacific is supposed
| to be rather better situated than Atchison.
| because of the fact that 1T can use the
enormous net earnings of the Southern
Pacific in lettering the physical condition
of what is really the ives, western ne end of the
Central Pacific from Ogden TO the coast.
This piece OF property is legally part of
the Southern Pacific system which gives
excuse to Mr.. Hartman for using the
| money of the old Huntington lines in the
South for strengthening the direct Omaha
San Francisco line, which was originally
| starved to carry through Southern Pacific
construction. ST. Paul. Rock Island, North
| western and the Hill lines in the Northwest
| have resolutely refused to expend any,
| where near the full amount of net earn
! ings in dividend disbursements. Conse-
quently, they are in position TO go ahead
| with their improvements. Northwestern
| has treasury assets which would give ample
warrant for doubling it's capital stock in
| the way of a stock or bond distribution to
| a position to pay big dividends on the en-
| larged volume of paper. st. Paul has
$40 100000 cash on deposit: illinois Central is
| condition of the Gould properties, either
| east or west of the Mississippi With these
proper9es t re e,emehs re oil sh DOCK
| other corporation in the world, and only
the insiders know the exact situation.
|
The drains upon the East for money with
which to move the crops from the West to
the South is due to begin in fortnight
| There is a theory that the demands upon
the East will not be great as usual this
year, but that kind of talk is heard every
fall and is received with skepticism. 1t is
no doubt true that the South and West
are ''ful of money" but it is also true that
the banks throughout these great sections
of the country carry large balances in
New York and other Eastern centers. which
are subject to sight drafts Not only is
| no he ha nj haxro
the Mississippi river and south of the Ohio
| have local money loaned on Eastern paper.
| A demand for the repayment of any con-
siderable amount of these loans would be
| reflected instantaneously in Wall street and
upon the money situation in general. West
| erners combat the oft repeated statement
that the East has to supply funds to move
the crops in the surplus States. They ex-
plain that, in reality, the East is debtor to
money sent West is merely part
of that on deposit. In ether words.
the West has money of it's own
with which to do all OF its own business
and still leave great sums in New York
Boston, Philadelphia, and other Eastern
centers. 1t is small wonder, therefore, that
sensitive people In the West resent the
| charge that they are obliged to call upon
| their Eastern friends for financial help
Much is likely to be heard on this subject
in Congress next winter when the attempt
is made to put through financial legisla-
ton.
X
sort 1t would appear that those who are
advocating currency and banking reform
have by no means abandoned the hope of
| securing what they want at the hands of
Congress. Western opposition to the plans
| proposed has dampened ardor somewhat,
but not killed it. A financial stringency
| this fall and next winter consequent upon
| the handling of the cotton and grain crops.
| may furnish an object lesson and prove the
| need of legislation. This is one of the
| things which may be in store. 1t is taken
| account of by bankers and operators in
the stock market and is the real underly-
ing strength of bear arguments.
| Wall Street is beginning to dip into presi-
Dental politics, although as yet it is not
taking an active part in preliminary manip-
ulation. The recognized organs Of the street
are getting further into the open i'm their
| antagonism toward the present admins
tration, although individuals in the fnan-
cial district, when interviewed. have only
pleasant things TO say about President
Roosevelt, and make pretense of deplor-
ing attacks upon him. They are sufficiently
crafty and iong-headed to understand that
Iopen opposition to the President by Wall
hi.