The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-10
rHE EINAArIAL IrUATION.

L
TO the industrial shares and accompanied
by a great amount Of professional manipu-
lation which at times became very APP
parent and served 10 put the market in
bad light but still having It's origin In
genuine and general feeling Of confidence
in business affairs, Specifically, much OF
this confidence is undoubtedly due 10 the
brilliant crop prospect. All the agricultural
bureaus OF the different winter wheat States
arc reporting a condition OF winter wheat
away above the average for this time OF
year. and the stock and grain marke' alike
last week we're looking to the first report oil
the season which will be issued this after
noon to confirm these indications. The
spring wheat seeding, II seems, Is progress
ing favorably although the cotton planting
Is late The record Of commercial NOR
tally" for the first three months OF the
year makes a favorable showing az COM
pared with that for the same time in 1904.
railroad earnings are excellent and the IRON
and steel trade Is at the top notch as REGARDS
vo.Ime Of business, even II the percentage OF
profit is not as large as in former years.
The general labor outlook Is good. In all
this, certainly there Is ground for an
improving stock market, If prices have not
already discounted the effect Of such in
fiuence5. OF particular events during the
week the only important ones we're, perhaps
the delivery by the Supreme Court OF its
written opinion in the Northern Securities
case and the announcement Of the Union
Pacihc's new tlOO,OOO,OOO preferred stock
issue. Both the time and the character OF
the first named occurrence were wholly
expected. The proceedings taken in the
lower courts demonstrated to practically all
unprecedented observers that the famous
sale Of Northern Pacific stock by the Union
Pacific interests to the Northern Securities
Company consisted Of an absolute transfer
Of property and was not a sale in trust, and
therefore that a ratable division OF the
Northern Securities assets was the only
fair method Of distributing these assets
when the time for an enforced dissolution
OF the Northern Securities Company ar
rived 1t cannot be stated as a fact, but It
seems more than probable that the real
reason for the recent litigation in this
matter has not been. as appeared, an ef-
fort TO gain for the Union Pacific Company
the control Of the Northern Pacific Railroad,
but to protect the Chicago, Milwaukee and
st. Paul Railroad Company from the con-
tingency which has arisen, despite all
efforts, Of a 'pooketing' Of the ST. Paul
by rival and competitive railroad lines.
The Northern Securities case Is now thing
Of the past and its assets will soon be APP
portioned among those who owned them.
That much is certain What now OF the
general Western railroad situation and Of
the meaning Of the Union Pacifo's new
stock issue9 The use Of the proceeds OF
this issue has been, so far, one OF the best
Kept secrets Of the kind that Wall Street
has ever known. But the general idea
rather rested at the end Of the week upon
the conclusion that part, at least, Of the
new stock would be devoted to taking up
the 400 900 shares Of Atchison common
stock that were purchased by Union Pacific
people, although not directly, for the Union
Pacific Company last year; and it IA not at all
unlikely that the Union Pacific Company
has under way a plan Of large ownership,
though not Of majority control, Of the vari-
Gus railway lines in its territory, so that the
company will be the centre OF a community
Of interest there similar to that which has
! been established by the Pennsylvania in
the East. It will be interesting to observe
whether the Union Pacific will be able
r.
as ostensihly it Ia row the intention Of
| the company 20 do. This will be getting
a far better price for a mere preferred
stock than the company got for a con-
vertible bond a few years ago, and the
| Union Pacific preferred stock is. as few
people seem 20 know. only preferred as TO
dividends. It stands upon an equality
with the common stock as regards any
claim 10 assets, Many people think, there
fore, that the new preferred stock cannot
be sold at par and that the scheme in con-
temptation Is an exchange Of the new stock
in some way for other property.
Very little attention has been hereto
fore paid in this column 10 the Equitable
Life scandal, for the reason that the matter,
while Of imm6nse and intense interest in
the financial world, seemed 10 be re garded
by Wall Street as more OF less Of an AGA
demic affaiT at kast so far as its Effect upon
the fluctuations Of stock market values
was concerned. No more extraordinary
fact than that such developments should
influCnce the stock market 10 little has
passed upon 0 II financial re cords in recent
years In former times such disclosures
would have shaken Wall Street to its
is not 50 very. very far away, and pru-
dent people will take thought Of it, The
Equitable trouble is not Of sudden growth,
but has been long impending The
public has not. perhaps, been impressed
with the fact, but for years in insurance
cir clss the anomaly has been discussed Of
the operation under a mere joint stock
manage mint like that OF the Equitable
Of a life insurance company having a
billion and half Of dollars in outstanding
policies secured by asset Of four hundred
millions; and the wonder has been in these
quarters how long q reorganization Of
Il e Equitable Company, with a oonsequen
probable TOW could be postponed II
must be said that two great results have
happened from the progress Of the
affGir thus far Ono Of these IA the
growth Of fee ling Of distIust toward
tie life insurance business as a whole.
People arc aging not that life inslIr-
nnoe Il wong in p inciple but tat as
it il administered in this country to-day.
it costs too much; and that the chief rea-
son II COS s 100 much Is the extravaganza.
Encouragement and general waste OF
funds that has teen bred by the accunula-