The Minneapolis journal., 1906-03-04

Some Adverse Factors Are al
Work - Fundamentals
Still Sound.
Special to The Journal.

New York, March 3.-The stock mar
affair, the large operators having ap-
parently left it to it's own ways and
fancies. The market, it may be said,
1s extremely sensitive to adverse news.
thus indicating that the leading finan-
elal interests no longer are active in
hoidlng up values, and that it's techni-
cal position is much weaker than in the
closing month of 1905. There appears
TO be nothing in the general situation,
however, to warrant uneasiness on the
part of investors, conditions governing
the actual values Of securities remain
si 4 'cng ing sound, with no prospect of on ur-
favorable change. The general idea
In Wall street is that the market will
continue to be trading affair for some
time to come, and that later on. in. the
season an upward movement will begin
from lower level, this idea being
based on the expectation that there will
be no adverse change in conditions af
fecting money and business in this and
other countries. r..
During period Of stock market
enthusiasm everything but the bright
side is dlsregarded, but when more nor
NAL conditions arrive the tendency is
to give events their proper value. Re
Gently there have been various factors
of a more of less unsatisfactory nature.
ing of the resolution to investigate tho
coal roads, which, following closely
upon bills against railroads in state
legislatures, is Indicative of the grow
ing spirit of antagonism to corporations.
In New York, where the gas combine
will forced to reduce its price twenty,
per cent, the advocates OF municipal
ownership-to say nothing Of various
reform measures-are making. a
weighty propaganda to force legislat
i've action. Along these lines the
measures proposed by the Armstrong
insurance committee, drastic in their
nature, are calculated to affect Wall
tent, particularly should those features
become law which prac ctically restrict
investment by insurance companies to
bonds permissible for savings banks
and compel the saleA Of stock holdings
within five years. The decision Of the
Ohio case, while it should net be inter
preted too literally, works against a
railroad acting in the dual capacity Of
carrier and dealer. Altho the fight
over. the railroad rate bill is no longer
novelty the uncertainty of the out
come has also disquieting effect.
Last, but not least, the coal dispute
hangs like pail over the market.
The Armstrong committee suggests
that life insurance companies should no
longer be owners of stocks. The Prns-
sian government some years ago made
similar suggestion, out of which arose
s the famous sale of stocks, with a string
attached, by the New York Life In
surance company. Presumably the mo-
tive for the Armstrong suggestion is to
curb the personal power and ambitions
of the heads of such companies, of the
trustees or the powers behind the
throne. df the suggestion is adopted,
there are two ways of avoiding the law.
One is ownership of stocks by subter-
: fuge, the other is that the powers own
the stock and merely borrow the money
from the insurance companies. The
loss to the policy-holder makes very
little difference to Individuals but in
the aggregate it is colossal. Any in
diyidual who rich enough to own a
large slice of a railroad mortgage is
foolish unless he OWNS stock besides SO
that he can be on the inside counsels
and keep posted on what is going on
Corporations stand in the same cate
CORY with individuals in this respect
Money market conditions in the
United States are not at all favorable
to active speculation in securities
price In New York, but it is also held
at firm figures at all the interior cities
Indeed, money is going out Of New
! York, and 1t doubtless will continue to
do so in volume for a number OF weeks
to come owing to the spring require
ments in agricultural sections. II
there should be serious disturbance
abroad over the Moroccan situation
Europe might decide to keep its fund:
at home. and in this event there might
Be acute stringency in this city. Al
present quotations for money in al
Fnropean capitals are we'll under the
rates asked in the financial centers Of
{ the United States.
Stanley Schroff.