The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-11-24
.SPEYER'S NAME
BOOMS The R. |.
HIS PURCHASE OF BONDS STOPS
"KNoCKINa.''
When Well-Known Banking Firm
Showed It's Confidence in the Road,
the New York Papers That Had Been
Attacking It for Two Years Flopped
Completely.

Special to Tho Journal.
New York, Nov. 24.-There is no
case on record in Wall street where
there has been so complete change OF
taken place in Rock Island. A month
ago the New York Post and the New
York Herald were recognized as bitter
enemies of the Rock Island system and
all that were connected with that sys-
tenn. The Post came out in review
of the annual report that was uttered
names names merely for the delight # call
ing names. The Herald did not review
the report at all, but contented itself
with constant sIur and knocking
and various other methods of showing
a lack Of confidence in the management
and properties of this system.
all changed like flash last Wednes-
day. On that day James ..Speyer an
nounced that he had bought $25, 0O0,-
900 of the new Rock Island bonds. The
next day he announced that he had
sold those bonds at 9315 and interest.
| Twenty.four hours later the same bonds
were selling in the Wall street market
at 961a and interest, and the New
York savings banks were tumbling
over one another in the effort to get
some of the cream off this pitcher OF
milk.
The Herald, the Post and the lesser
! papers that had followed these great
grace, excuse or pretense. The columns
Of the Herald have not contained q
derogatory remark about Rock Island
| from that day to this. This paper had
once carried on a campaign against
| the admission Of these bonds as saw
ings-bank investments in New York.
| Then the savings bank committee. John
| l1c c% 80 hnO q q
in the Herald and the Post long ar
ticles telling Of the awful things that
would happen if the hapless savings
banks. bought these bonds. Now the
same presidents and managers that did
all this inspired knocking are down
in Wall street buying, the new bonds.
kneck kie a Rep pufng ! the p new bonds
The whole episode is the answer to
the question Shakspere asked What s
in a name9' This time it is the name
of James Speyer. The Endorsement by
that firm Of the policy and aims of
this company have removed the last
of the Post and Herald type find that
they have for the past three years
been barking up the wrong tree.
! With rush the Rock Island securi
ties have answered to the new impetus
4 The day the announcement was made
the preferred stock crossed 80 for the
first time in two years, the per cent
collaterals reached the same figure fol
the first time in two years; the pei
cent collaterals established new rec
ord Of 90; the common advanced t.
81; the old general mortgage TOURS
touched 106-the highest price since
1901. No one can say that the rea
value of these securities is any higher
today than it was a year ago. No one
can say there is merit in the road thai
lit did not have a year ago.. The ont
situation is now recognized by a known
authority-James Speyer: The Speyer
in thirty years have sold but one SCI
of bonds that defaulted, and in tina
case they paid the coupons themselve
until the bond was paid off. This il
3, a banking record that has. no equal OF
the street. Therefore, the name O.
Speyer as member Of the Rock Islant
finance committee, has worked this rev
olution.
Hereafter there are going to be fewe
sinister rumors about the Rock Islam,
company than there have been. It
not true that the boom in the stock
is justified by development. They ar
speculative entirely, but their prospect
look better than they did. aes@