The Birmingham age-herald., 1903-09-13


 A great may people find themselves em- barrassed by the tying up of their funds in the underwriting and syndicate schemes of J. P Morgan & Co. It Is es- timated that not less than $200000,000 Is thus held in suspense and in a sense par alyzed. Not a few go so far as to say that the inactivity in the stock market Is due more largely to J. Pierpont Morgan than to any other single cause. Steel pre- ferred to the face value of $100 100000 was turned into Morgan's office more than a year ago by subscribers to the bond con- version scheme. When stockholders sur rendered their shares they got back a mere receipt from J. P. Morgan & Co.,, and this is all they have today to show for their securities. The syndicate was to have expired next month. but the time limit Is understood to have been arhitrar- ly moved forward six months This tie- up operates as hardship to many peo- pie. One case Is mentioned of q gentle man who was worth S2. COG, GOO In quick as- sets and who turned in s1,000,0oO in pre- ferred steel stock. He subsequently lost s600,000 in speculation. spent $2O0.000 and put the remaining $200.000 out in such way that he could not easily get it back. His entire fortune now consists of little strip of paper from J. P. Morgan & Co.,, acknowledging the receipt of 10000 shares of preferred stock in the United States Steel corporation. This receipt is non-ne- gotiable. He could not raise a dollar on 1t in any bank in New York. There are ] many others who are similarly situated, although this is, perhaps, an extreme case.
 It is understood that between s6O0OO, GOO and S75. GOO. 900 Is tied mp in the Interna- tional Mercantile Marine company and large sums in Northern Securities and other deals less magnitude making total of approximately s200, COG. 00O Nor gan X Co are said to be extremely easy in cash. but not all of the subscribers to the Morgan underwriting scheme can say that they are similarly blessed. The winding up of these various enterprises and the restoration of the securities to their owners would release an immense amount of collateral and might lubricate the machinery of speculation.
 The annual report of the Canadian Pacific railway called out considerable criticism and is being subjected to rath- CT keen inspection. During the year the capital stock of the company has been in- creased $l9, 500.000 and land was sold to the aggregate value of nearly $10.000.000. It does not appear that the road has been spending any very large amounts in ex- tensions or purchases of new railroad properties. although it has bought steamship line at a cost or SbouO,Wu m round figures. To reimburse the treasury for money spent for steamboats it is now proposed to issue another batch of stock although at the time of the previous issue the purpose was understood to have been to buy the boats with the proceeds
 The collateral fact is being freely men toned that tymendous land specula- ton is in progg Fs in Manitoba and the country west jereof along the line of the line of the Canadian Pacific. Extra ordinary efforts are being made to attract immigration into that area and incidental- ly in connection with this movement there has been unparalleled speculation in land titles. This situation is well understood in