The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-11-07
AMES & co. SELLING
Odd Course of Twin City, 500 and
Canadian Pacific in the Mar
ket Is Explained.
Affairs of Embarrassed Toronto
Firms Being Prudently Set
tied UP.
Special to The Journal.

New York Nov TIT has been the cause
oYconsiderable speculation for the past two
months why good dividend paying stock
like Canadian Pacific and Twin City Rapid
Transit has shown a decided tendency to
lag behind the market at all periods of
buoyancy while the same stocks display a
remarkable resistance to pressure during
days of depression. To get some light on
this question quiet investiga ton of mar
ket conditions at Toronto has been made.
1t was believed that the market for these
two securities In particular was depend
ent upon Toronto conditions. The investi
cation developed the fact that this belief
was justified. 81
The present condition of the market for
Twin City Rapid Transit securities, Ca
madam Pacific, Tennessee Coal and Iron,
Sloss Sheffield, two or three of the lead
ing Canadian securities, and possibly De-
troit United Is direct result of the sus-
pension of the firm OF A. f.. Ames & Co.
last summer, the resumption of business
by that firm under a peculiar settlement
with the creditors, and the assistance that
was extended to- at least one other big
Toronto firm at the same time and subse
quenty to other firms and one big indi-
vidual operator.
The firm OF Anes 6 Co. resumed bust
ness on condition that payments should be
made to the creditors at stated intervals
thruout the year. The first payment was
made in July or August. and the next is
due on Jan. Is. When the payment was
made in the summer 1t left the firm OF
Ames & Co. with a fair working margin in
cash and with a great deal of stocks on
hand. In order to meet the payment that
comes due in January a part of these
gradually as the market is in position to
absorb them. Whenever Twin City or Ca
madam Pacific, or any of the other stocks
III which this firm was interested show
any strength In the market the securities
of this and other firms are slowly fed out
wherever there is a bid for shares Of the
stock. This liquidat ton has continued
steadily, and it is stated by those in fairly
close touch with affairs in Toronto that
the progress of the liquidation has been
satisfactory and that If continued on the
same basis 1t will result in the final saliva
tion of the firms interested without the
disastrous and unpleasant necessity of a
resource to the bankruptcy court.
In Toronto one hears on every hand the
highest praise for the action of the Ca :
madam banks during the crisis of last
summer. 1t appears that the managers of
those financial institutions not only kept
their own skirts clear Of entangleme1ts
but ALSO after the Anaes failure, intimated
their willingness to come to the@help5 OF
other firms that with such help could save
themselves. but without it would am
doubtedly have gone down. Even before
much to- help that firm thru It's difficulties
and only allowed it to go under, when the
banks good faith with it's own depositors
would not permit of further efforts for
the saliva ion of the firm -
The distribution of the almost lln1nar-
ketable securities held by the Toronto
firms Is largely in the hands Of the banks.
They are being fed out to the market
carefully. wisely. and without haste There
isanot the least probability Of any hasty
liquidation from this quarter. The banks
are strong and are willing to use their
strength for the salvation of the specula
tion situation in Canada. The personnel
of the banking directors probably affords
a clue to the reason for this friendly action
on the part of the banks. Canadian Pa
cifc interests are the most prominent in
dividuals In the banking world of Canada
and it is to the interest of Canadian Pa
cihc and must result to the future benefit
of that railroad property, that no really
severe or drastic liquidation be allowed
to depreciate further the market value o.
the securities Of that company.
The Independent operator, whose trou
bles had a good deal to do will
the making Of extremely low prices IL
sloss- Sheffield and Tennessee Coal ant
Iron started few years ago with nothing
and accumulated a handsome little for
tune. Half of this he invested in stand
ard bonds and with the other half h
carried on spectacular campaign in T
CT. Twin City. 500 Line. and Sloss Shelf
field. The break in the market found hin
with his hands full. Being young at tn
game, he refused to take his losses am
to save his bad ones. The banks now ow1