The Washington herald., 1907-06-22
WALL STREET NOTES
Speech Of Vanderlip Is Not
Viewed as Factor.
RAILROADS RAISIllG MONEY
Ease with which Exchange Accepts
Announcements of Huge issues of
nancial SituatIOn-St. Louis and
San Francisco May Sell Securities.

] 7hh Way Stll ~,
! New York. June Z.-WalI street to-day
| had subjects enough and more than
enough TO keep discussion active if more
profitable business is not. Most promi-
/ nent Of ali was the speech delivered by
| Vice President Vanderlip. Of the National
/ City Bank. at the jamestown fair, but
neither the most optimistic bull nor the
| most pessimisuc bear could claim that
the remarks favored his side more than
the other. All conceded that it was a
/ fine example of the even keel, and it was
a matter of general wonder how Mr.
Nanderlip. with his mind full of original
| ideas, could talk for so long without let
ting one of them slip out As a demon
stration OF a well-goyerned tongue, it was
a most wonderful performance, and Wall
street took it for granted that the thought
uppermost In Mr. Vanderlip's mind all
through his address was, you may think
you can see what 1 am driving at, but if
you can, you must be pretty smart"
Just as the Vanderlip speech began to
appear on the news tickers. the traders,
without waiting to make themselves ac-
quainted with the tenor Of il. started
selling movement In the market on the
general ground that Mr.. Vanderlp's ut
terances in public had not for some time
been Of an entirely reassuring kind and
that in this case also they would prove
more helpful 10 the bears than 20 the
bulls. The attack on prices did not.
however, meet with any sreat success.
being based on a false assumption. and
the leading stocks found support NJ the
levels around which they had found il
before when driven down by bearish at
tacks. Il was evident that, while the
speech was interesting from more points
than one, it was in no sense a market
factor.
What at first glance looked Ike the
most important market factor Of the day
was the announcement that the St Louis
and San Francisco intended to ask the
consent Of its stockholders for very
large increase in its authorized capltaliza-
tion. The new financial plan provides for
an issue Of SlG0C00090 new common stock
and Sl15CO2CC0 new bonds. making the
formidable total Of 22l5. COZ, coo in the two
classes Of securities. But the full details
dlssipated the sensation which the first
rumors on the subject created. for it was
found that the company did not intend 20
sell more than Sl0.C00.CO0 bonds in the next
two years. and that the larger part Of thu
total bond issue was 10 provide for the
maturity Of bonds and notes already out
standing against the system.
The stock, Il was announced, will not be
sold, but il Is necessary that an Increase
in authorized amount be made II the bond
issue IS 20 be approved r. compliance
with Missouri law which insists on the
maintenance OF certain relations between
the stock and bond issues Of railroads In
that State.
Some Of the traders thought they could
see a connection between the recent sale /
of block of Rock Island and the plan
for financing the St. Louis and San Fran
cisco, but in active quarters il was as
serted. and apparently with good reason, /
that the new interest charge on the lat
ter road would be so small and the pros
pect Of an Increase IN the earnings from
the Increased facilities 20 be provided so
good that the Rock Islands investment
in the road would look good deal better
than il had looked before.
As the Sl0.O00000 bonds TO be sold at
once will not call for more than S5u.0U
a year in interest, and the 81. Louis and
San Francisco will, in the current year. /
earn a surplus OF about 100000 there
is no room for doubt as 10 the ability Of /
the company 10 take care of the new
charge. and as the road has been ham I
pered in doing a large business with in I
sufficient facilities, it is reasonable TO I
expect that when its wants in this re- /
spect are supplied, its surplus earnings I
will increase handsomely.
That old rumor about a suit 10 restrain |
the Union Pacific from carrying out its /
financial plan was passed around among 1
the traders, but few Of them seemed TO |
attach much Importance TO it. nearly all |
having reached the conclusion that moth /
ing good could come from the quarters
from which it had emanated. That
q suit might be brought some brokers be
ieved. but they doubted If the courts
would show much liberation TO an appl-
cation made by the type of speculator
spoken Of as the originator Of the alleged
scheme TO bring the proposed bond issue
into litigation.
II was generally cOntended that If the
natter ever was brought into court in
-eTesl in il would cease as soon as suit
was filed and 1t was seen that the party
behind 1t was an individual about whose
character Wall street, respectable Wall
street, has only one opinion.
Although it came - top Of announce
nent Of the financial pans of Chesapeake
and Ohio and St Louis and San Fran
cisco. the sale of S3,590,O00 bonds and notes
by Texas and Pacific attracted compara-
lively little attention All three an
together indicated what was
important, that for the first time IN
months II was possible for the weaker
roads to obtain money for Improvements
New York Central showed the effect Of
liquidation which in an orderly, quiet
way has been in progress in the stock
'or a considerable time past, All sorts
If Tumors have at one time or another
been put out to account for it, but the
,ause IS as much Of mystery as ever.
With only the known fact that some in
crest has stock for sale every time the
market is strong enough to take It.
-
LIVE STOCK MARKETS.
New York, juno H.-CATTLE- Receipts, 25s5.