The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-01
GOSSIP OF WALL srREET.

tl)n Will crjoy from the ell ects of the bitumi-
nous coal strike. Biuoe the Pittsburg Conl Com
pany, which supple; United States Steel with
al the coal II buys from outside, will continue
to operate In accordance with the resolution
of The miners TO remain at work in all cases
where the operators agree to restore the
1899 scale. But there was probably q deeper
reason In the fact that the volume OF new
business booked in the last two months was
much larger than most persons have supposed
and that the indications of a return of the tre-
lneDdous activity which characterized the
last months of 1905 are so strong as to inspire
the most optimistic anticipations az to the
future Of the industry. Judge Gary more
than a week ago and Charles NJ. Schwab
within the last few days testified to the sound
ness Of conditions In The iron and steel trade
and such testimony could not be dlsregarded
entirely.
There were, OF Course, abundant reasons
why the strength In Steel attracted more
attention than would attach to q similar
display Of the same characteristic in any
other stock on the list. The volume of Steel
common outstanding was 80 vast that no
interest, however powerful. could move il
upward unless aided by conditions stron ely
bullish in themselves. The amount Of this
stock In the hands Of the public Is S5OS. 900. 900.
or nearly three and a half times "a large as
that OF Amalgamated Copper. which ranks
next as the largest industrial. ON Steel
common no dividend is paid. which initiates
against absorption by Investors and tends
to keep the floating supply relatively large.
AS the company has only just completed its
fifth year II will be seen that TO place all OF IL
with investors the purchases for permanent
investment must have averaged AlOO, o00, 900
n year since reorganization including, of
course. the amounts received by original
snbscribers and held by them strictly for
investment. II Ia altogether improbable
that in a period which included one year OF
great depression In the steel industry the
absorption Of the stock for Investment could
have been at such a hiEh average yearly, and
therefore it must be assumed that the float
ing supply is still very large, which indicates
that there must he a trem endous force be-
hind tho movement. -
But the lesson Of the rise in steel becomes
all the more impressive when II is oonsid-
cred that stock is held In more or less specu-
lative hands throughout, the United States.
II there were any serious doubts in any part
OF the country as to the stability of the in
dustry or the continuance OF general pros
perity, these must make themselves felt in
the selling Of steel by that region. That
nothing of the kind is seen denotes universal
confidence. Not only are the present holders
indisposed to sell. but they manifest an eager
ness 10 Duy llOTt "utIitNti tiltN lHuiSd
lions OF genuine bullishness on the part Of
insiders. The facilities which have always
been afforded to the public for keeping we'll
! informed on the company's affairs have re-
| suited in the exercise of an intelligent interest
In the steel business which is in marked
contrast with the ohsourity in which the
trade was shroude1 a few years ago. For
this reason the holders OF Steel common
have formed opinions as to it's value. and
49, .A~a1 -H,n.Nna ,t,nr htnhar nFtrnG hza
been strongly demonstrated in the last few
days. oh.
In 1898 Union PACING sold "a low as ali out
SIS a share. but IL more than doubled in price
before the end OF the year. When the stock
was quoted at about 20 and any attempt to
buy a large amount in the open market would
probably have put the price up sharply. a num-
Der Of leading interests in Chicago and North
western were invited to make an insp cotton
OF the road. in the hope tn at they might be
induced to take some measures TO siren CITIZEN
the relations bet ween the two companies.
At the conclusion Of the trip a large block OF
Union Pacific common at 20 was offered to the
people, but was rejected. one
director of the Northwestern going so far as
to express the opinion that the stock was
not worth the paper it was printed on. Here,
however. was a significant fact. The Union
Pacific people wanted a community OF In
terest. Their company was. however. I'M
able to buy any large amount OF Northwestern,
so they sought to accomplish their purpose
in another way. The purpose was defeated
then, but there is good reason to believe that
IL has never been abandoned.
Within the past six years a great change
has come over Union Pacific. Instead of a
weak company II has become a splendid
Garner with an overlooking treasury. In
IL ~ af~ a arn ta
the policy of to-day. There must be g close
alliance with Chica go and Northwestern
and probably in the long run with the Van
derbilt lines east of Chicago. Northwestern
ak years ago would not buy Into Union Pa
cifc and Union Pacific could not at that time
buy into Northw But the latter is now
possible and there are some very shrewd
people who feel convinced that the COM
| munity Of interest is working out in this way
Rock Island. which had been depressed
on account of the illness Of B. F. foakum
A week ago, SHOWED substantial strength on
account Of the satisfactory earnings and the
disposltion to connect the report that a prom
inent banking house interested in this com
pany and Mexican National had increased
its holdings of the latter with some plan TO
hiring the two roads into close relationship.
There have long been rumors that Rock
Island contemplated an extension of its OPP
erations into Mexico. and these heretofore
| concerned close relations with Mexican Cen
| trail, but some people now think that what
! ever plans there may be refer to the other
| prominent Mexican road.
The bank statement was some what better
| than expected, and when the figures made
their appearance there was a disposition to
argue that the corner had beer turned In the
money market and that in a 6 ort time there
would be q considerable decline IN rates for
both call and time funds,
Here and there some traders, bearishlr in
clined, argued that the appearance of easier
money might prove illusory on the ground
that as the high rates had lnterposed a serious
| obstacle TO the foaNing OF new loans a number
of issues had been hold up TO await a more
favorable opportunity. and that therefore
such opportunities as they presented them
selves would be quickly availed Of. For this
| reason, il was argued. low rates would not
prevail very long. The great business of the
| railroads involved provision for additional
facilities. and new construction and develop
nnent, both railroad and industrial, had created
a demand for money which would be felt Just
as soon as conditions favored the Offering OF
new issues Of bonds. Clearly there would
have been no use In Offering bonds recently,
and IL high rates were to continue there might
| be a temperance of the kind of financing so
much in evidence a couple of years ago in the