The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-02-07

Ihdu" on the exchange ana reported there amount
to nearly $50 shares. The only bond sale OF the
week was the transfer Of 5000 Indianapolis *
Martinsville Rapid Transit fves The bid on
this issue has advanced points since the call
last week. TO 50. The bulk of the activity this
week has been in Union Traction. The sales
made on the exchange and reported there were
lSO shares Union Traction common at 30l5 -
shares Union Traction preferred at 70iz 40 shares
Union Traction Preferred at al. 20 shares Union
Traction preferred at 7lla. 100 shares Atlas pre-
way at S., y shares American Central Life at
1912. and 30 shares Union National Bank at par.
The outlook for the coming week in local secur-
tiles is bright. There is much inquiry for the
leading stocks and bonds. In some of the lead
ing issues it is probable that advances of a
point or two will be scored. The demand for
the indianapolis Street-raiway issues continues
active From the record of sales reported to the
exchange the past week it would seem that the
demand Tor bonds at the present bid prices is at
lull. The weeks of January recorded a large
activity in the leading bond issues. and il is
curties at the present bids There is such a
large inquiry for the leading stocks that there is
within short time. a number of houses report
a growing speculative demand for some of the
traction issues.
The Pennsylvania Railroad Company's loan of
s5O0OoO00 and the secretary of the treasury
notice to the national banks that he will call
for 20 per cent Of their government deposits
within ten days the features of most i'm
portance in the financial world the past week
The Pennsylvania loan of 0OO0 coo had very
depressing effect upon the issues Of this COM
pany and the lines allied with IL and upon the
stock market in general. The loan was made on
41z per cent eighteen months notes, which were
underwrltten al g21e, according TO reports from
Wall street. As the Pennsylvania Company made
a loan OF SlCO,V0OVO about year ago. the fnan-
clal world does not seem TO take well to the
idea OF the new loan. The secretary of the
reasurys call for %. per cent. OF the government
deposits held by the national banks. the money
to be applied upon the Panama canal payment
had been anticipated for some time. and did not
have disturbing effect upon the money market
And. according 70 the most reliable information
from New York. the money market will not be
10 the Panama Canal Company.
Representatives of three syndicates headed by
Farson. Leach & Co. ]. p. Morgan & Co. and
the National City Bank. respectively. are in Ha-
vana, on their way thther, to enter into ne
gotiations with the Cuban government for the
purchase of the new s35. OOO 600 bond issues That
three institutions should have taken up the mat
ter as they have indicates how much the credit
of the republic was benefited by the action
OF the Cuban Congress in recognizing the old
revolutionary bonds and providing for the paw
ment Of interest on them. To just what extent
these three syndicates will compete against each
other when il comes to bidding the bonds is
question. In banking circles IT is regarded as
highly probable that the three groups of inter-
ests will come TO some sort of an understandin
under which they will either make a ioint hid
agree that the successful competitor is TO dis
pose of part OF the issue TO each of other two
at agreed price. The syndicate OF New York
bankers who bought up something like 81, COO. 600
of the old revolutionary issue has made a hand
some profit OF the operation, besides mater
tally assisting the flotaton OF the new issue
~ I
1t is understood that opposition has developed
to the reorganization plan of the United States
Realty Company. which contemplates the ex-
change of the stock on the terms of 20 per cent.
in AZ per cent bonds and 80 per cent in new
cent of new stock Tor the exstin anu ~ per
stock. The objection is that 20 per cent in new
much and IL is probable that the proposition will
be scaled down. II is said that there has been
time past Most of the orders appear 10 have
been coming from the pool
r 7 =
Meyer & Kiser have the following from their
Wal-street correspondents: "Of the $50 600 900
borrowed by the Pennsylvania Company $50 600 Ooo
has already been spent. and estimates on further
Improvements the Western lines are now be-
ing made for the balance. which does not look
very much like purchase of the Western Mary
land. AT the same time think there Is a
great deal in the story that Mr.. Frick is irving
to effect peace between Cassatt and Gould and
he is probably as well qualified to do this as any
man."
Here is a theory by the financial writer Of the
Evening Telegram: 1T ought to be apparent to
every student of financial matters that the ar
ranging of Pennsylvania $50 OOO 900 loan is sim
ply part of Mr.. Cassatts plan to prevent Wabash
extensions by the exhaustion OF financial accom-
Hodatlons "A year ago the same tactics were
ADOPTED, and resulted in a midsummer disaster.
starts little earlier. and If persisted in must
have the same result without available accom-
whether it is in the shape Of Wabash extension
or not. and all that can be done by Wall-street
fc 70 .lgs41
induce Mr.. Cassatt to absorb for the Pennsylva-
MIA Company funds necessary for Wall-street
purposes and the country's development
Rumors from La Sale street have 1t that the
American Can Company will declare a second
dividend of 2ls per cent. the preferred stock.
payable in March. The company now owes the
preferred stock ssSOs 1874 in unpaid dividends
That the company is overcapitalized is suf-
fciently evident" says a Chicago financial
writer ITO bring this capitalization within
bounds would seem to be object for the man.
dend account grows larger but at the same time
each year finds more stockholders who have pur-
chased their shares at low prices. With the
ception Of the insiders those who were buyers
around the high quotation have generally taken
that after while the general holders Of the stock
Will be those who have bought it cheap. Then
scale the accommodating debt of unpaid dividends
VIII not meet with the opposition which would
their stock from the organization of the company.
lhere VIII be such class Of shareholders as
the latter being the insiders. AS they however.
conducted the purchase of the respective plants
and fixed the capitalization Of the company they
may rightly be expected to suffer the penalty of
pad judgment, or, at least. bad results"
The death OF William c. Whitney removes
from Wall street one Of its most notable finan-
eiers. For years he a power in the stock
market. He speculated on an enormous scale.
and until the last year two was uniformly
successful. Probably his notable achieve
ment was the capture Of the Third-avenue Rail-
way. This stock declined from above 2O) to be-
low 30. James r. Keene held block of over
5000 shares and lost heavily on the decline
When the stock broke par il was generally be-
neVed that the company would be forced into
the hands Of receivers. Whitney caused this
report 10 be widely circulated and fostered IL in
every way. keene is said 10 have gone heavily
short OF Third-avenue when IL broke So While
II would be wiped of the board Whitney en-
ployed a large number OF brokers and purchased
me control OF the company in the open market.
AFTER practically all OF the stock had been pur-
chased II announced that the company had
been leased to the Metropolitan Street-rai lway
Ihen began one OF the widest advances ever seen
advanced from 10 TO 10 Keene was believed 10
have lost several fortunes. and thereafter the
Diiterest kind OF enmity existed between he and
whitney. Mr.. Whitney il reported 10 have made
over ST. 600. coo in less than three weeks Shortly
aIterward he announced his retirement from
business and during the last few years OF his
lie MT whitney was seldom seen in Wall street
The conditions prevailing in the cotton market
at the present time are very similar 10 those
prevailing in the stock market during the wild
boom early in 1901. Like the recent trading in