New-York tribune., 1903-04-13
STOCK MARKET FACTORS.


control that one company may exercise over
another through stock ownership when the COM
panic. are competing lines. 1t is also a step
toward the Interpretation Of the law affecting
RE right of two or more railroads TO be operated
by holding company. Railroad men want TO
know where they stand. They want to know
how they can conduct the transportation ousi-
ress on the most economical and profitable basis
without violating law. and the sooner they
find out from the Supreme Court OF the United
States whether or not the holding company idea
snd the community OF interest idea are within
-h.,s the better they will be pleased If there
is something wrong with the present concentra-
,ion of control scheme, a, way will be found 10
remedy the evil The law does not seek to inJure
the railroad business and railroad men do not
s.ek TO violate the Law. The Circuit Court Ior
the District OF Minnesota has decided that the
Northern Securities Company exists in viola
ton of the law. but it does not find that the
Northern Securities Company in the exercise OF
its control of the Northern Pacific ano Great
Northern Railroad companies is guilty OF acts
detrimental 10 the interests OF trade 1t now re-
mains for the highest court in the land to de-
eide whether or not the Circuit Court rules
vv,.ely IN finding that the formation Of the
Northern Securities Company is in violation OF
the Sherman Antitrust law In conservative
.src1es the decision is considered good law.
No matter what the final outcome Of this I'M
rortsnt case may be. investors may rest as
sured that the railroads OF the United states
will continue to earn and pay dividends, ana
that 2 legal adjustment Of the rights OF the
railroads TO combine through hololns colh-
rany or otherwise viii tend TO strengthen.
rather than TO weaken. the value Of American
securities. II is 10 be hoped that investors VIII
refrain from sacrificing good stocks and bonds
because of the Northern Securities decision
Rear ammunition showed distinct signs Of run
ming short last week. but the appearance OF
This decision came in the nick OF time, and, as
q consequence, bear enthusiasm may run rlot
this week without. however, causing important
loss in values If the market should decline ex-
cellent opportunities viii be offered for the
ACQUISITION of valuable securities at attractive
prices. Prices are already cheap. The chanoes
are that there is not enough weakly held long
stock TO make an active nquidating market at
present while the presence of big short in
ferest also initiates against a serious decline
Good stocks and railroad bonds were accumu-
lated last week by local and foreign investors
In the last few weeks local panklng houses
have placed round amounts Of American ran
road bonds IN Europe, and indications favor
an increasing European demand for our attrac-
tive railroad shares
Money market conditions are improving. Cur
rency is moving toward this centre, the gov
ernn1ent is absorbing less from the New-Iork
market while government expenditures are in
creasing Bank statement figures show an ex-
handing tendency in reserves, and the known
factors in the situation suggest an important
addition TO the money supply at this centre
in the course of the next few months The
Pennsylvania Railroad will pay off its $40
oaoee0 loan in July through the June install
rnents on the new stock so that the money
market Will not. as recently predicted in some
quarters. be adversely affected by the first pay
rnent on the Pennsylvania's new capital issue.
II is announced that the New York Central will
not be in the market with new stock this spring,
and that it will not sell additional stock until
monetary conditions are more favorable. Grad
uallv the adverse influences in the money mar
bet are disappearing. while more promising
outlook is developing Foreign trade is running
heavily in favor Of this country. Exports are
increasing at a rapid rate. and ii would not be
surprising if gold imports were 10 be made in
the fall Domestic exports in March. including
cotton. grain. mineral oil and provisions,
amounted in value TO S76.140642. an increa 80
Of S21. .25s 974 over March. 1902.
The Southern Pacific POOL was the largest pool
eyer formed in Wall Street and the most dis
sstrous. It is estimated that the decline in the
value Of the pools holdings aggregates $500
GOO these figures being based the average
Price at which the stock acquired and the
closing price Of Southern Pacific in Thursdays
market. The total cost aggregated S16669O0o
against a present market value Of about S13,-
he loss RI
bers Of the pool may be Offset in part by short
sales against pool holdings. while II is more
Than probable that the stock will be held by the
-ool as individuals until bull wave carries the
quotation higher. The pool expired by nnita-
,fon on Friday. NJ. Keene has enjoyed many
victories in speculative campaigns in Wall
Street. and the failure OF his Southern Pacific
,nanoeuvres is doubtless therefore all the harder
for hiTn % bear.
The bugaboo Of undigested securities continues
IN influence sentiment among poorly informed
people but in circles where facts are corsld-
cred rather than fancies, the question is begin
ming 70 be looked n the same light as
viewed by Mr.. Morgan in his recent discussion
oe The situation There are fewer undigested
securities to-day than there were year ago,
ard absorption is going on at satisfactory
rate despite the comparative dulness In the
omen market An instance OF the steady ab-
scrption Of securities by investors is rejected
g. the tn,rgase in the number Of stockholders Of
-he United States Steel Corporation in the last
year from 43!01O TO $500. In the annual report
of the United States Steel Corporation pub
Iishe6 last week many strong arguments are
,,c.sented for confidence IN the stability Of
American industrial activity and confidence in
,,e ahiJftv Of the great steel combination TO
make 2 good record even in times Of industrial
6sn-esstor It is hard to conceive OF z concern