Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-11
Financial News Letter
BY ". G. NICHOLAS.
NEW YORK. February 10. 1900.

surface sentiment. is nervous and there is
disposition on the part of the superficial
class to take flight at the slightest alarm.
representatives of strong interests and
strong people continue steadfastly bulish
on the general situation, and look for a
higher range of prices for good stocks. The
money-earning power of railroads and of
established industrials has not yet reached
Its limit. and there are still great specula-
tive and investment possibilities In the mar
ket. according to the bes. Judgment of the
best people. Meantime the market is full
OF flurries, and at the reaction which has
taken place in prices there is attendant
shrinkage in the aggregate volume of deal
ings on the stock exchange.
Activity centers largely In a few favorites
and in some of the specialties. Traders have
formed the habit of looking to Union Pa
cific and the steel issues for leadership.
main favorable to the bull side hats not
been altogether satisfactory to a large
following which cannot understand why
their pet securities should be subject to
frequent sinking spells and other disturb
ing phenomena. Both properties are earn
Ing money at prodigious rate and there
Is substantial basis for the most hopeful
view on the part of investors. yet ever now
and then something happens to start prices
down and throw margin players into
state Of semi-panic. For weeks the Inn
agfnation Of the speculative public has
been fed to the point of inflammation by
gossip about the distribution in some form
or other of fabulous profits supposed to
have piled up to the credit of Union Pacific.
Estimates of the total surplus available
for diffusion among stockholders have
ranged from $50, 600 to $125, 00O, 900. Mr..
Hartman seemingly encouraged this sort
of gossip, although he did not see fit to
take the rest of the stockholders into his
confidence by giving exact figures or any
sort of official statement which might
give definite cue to the facts. This abb
sence of positive knowledge gave the
romancers free reign. The reports of what
was to be done with the surplus covered
about everything this side of the imagery
Of a hasheesh dreamer. There was to be
a 80 per cent cash dividend; 80 or rs per
cent script or stock dividend; the purchase
of another big block of stock In Atchison;
acquisition of concrol of Illinois Central;
big gift of bonds to represent the SOC, 600 600
to $60,000,000 to be expended in San Pedro
and other Pacific coast extensions and In
the building of new competitive lines into
the Hil territory; the outright purchase
from Illinois Central of Its Chicago and
Omaha branch, thereby giving Union Pa
cific it's own tracks into Chicago. together
with the depot and other terminal facilities
jointly with the Illinois corporation. These
are only few of the most reasonable con-
lectures, all of which have at various
times done service to keep interests alive in
Union Pacific and allied stocks.
Some of the bright boys In the street
have discovered that the statesmen in
Washington got heavily short of the stock
market before the attack on the Pennsyl-
vania railroad was launched and that they
are still short on a very large scale. 1t is
Furthermore reported that Washington will
not let up in its fight on the railroads until
1t gets out of the market. This story has
been very backward in making its appear
ance. It should have been trotted out
weeks ago. The delay shows lamentable
lack of Imagination. AS a matter of fact
Washington is an Insignificant factor in
Wall street. There are some stable specu-
lators in the national capital, but the ag-
gregate volume of business originating
there is small. Congressman who trade on
advance information of projected legisla-
ton belong to the piker class and their
dealings have neither weight nor influence
They usually trade In bucket shops. The
big players in Washington are moved by
the same causes that control the opera
lions of the big players in New York, and
they look to Wall street for news and adj
vice rather than closer home. There are
times, of course, when they scalp the
market or get in on a campaign on what
they believe will be the effect of legisla-
ton, but that is only incidental as rule.
Occasionally the pikers in Washington and
at the capitals of important states make
clever market luFUS on tEelF own political
plays. but they usually lose money. Time
and again the grating gangs at Washing
ton, Albany and Springfield, ILL.,, have been
trimmed in Wall street The Illinois alder
manic and legislative poodlers who for
fifteen years have made speciality of raid
ing Peoples Gas got left ten times where
they won once.
X x
Standard Oil is going to split up its $780,
10000 of share capital that the GER
tifcates may get within reach of the poor
man. For every one share of old stock six
new shares will be issued In other words
the capitalization will be increased from
100,000,00o to s600,00000o. The actual
of the corporation is said to be
worth about 100000, 900, and annual earn
ings are arranged from $4oO00,O00 to $780,
100000 The splitting up of the shares will
probably be followed by their wider dis
tribution. At present they are closely held
in large blocks, not more than 10 per cent
being in public hands, that phrase is
1t is barely possible that Incl
dental to the move official statement
may be made of the condition of the COM
pany and the whereabouts of the assets.
The management has steadily refused from
the first to make any statement but in
fuential members of the Standard Oil group
are openly in favor of more liberal policy
in this respect.