Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-02-23
Financial News Letter
BY ". ]. NICHOLAS.

NEW YORK, February 9.-Outside Of
distinctive groups and leaderships identi-
fed with specialties most of the really big
people of Wall street seem quite wiling
to .et the stock market drift for the time
being. The bearish contingent keeps right
on feeling for the weak spots, and not in
frequently uncovering them. They got
after the Gould specialties this week. with
the result of forcing sens ational break
in most of the issues bearing that brand.
The Goulds have done nothing to protect
their stocks throughout the long decline
that has taken place in them, although at
this writing they are doing what they can
with conversation to create a friendlier
feeling. The Gould properties have long
been in disfavor, and there is very little
mourning in Wall street over the terrific
shrinkaSe in that quarter. The Gou DIS
at times have seemed almost openly bear
ish in their own things. and the street
has been greatly mystined as to why this
should be so. and has tried to figure out
just where the insiders can make money In
that sort of campaign. 1t Is Coli
speciality. however. to make money<in re-
organizations. They are expert in the
handling of wreckage. George Gould has
been at great pains to deny the receiver
ship reports and rumors of trouble in con-
nection with the finances Of his roads.
These denials do not carry the weight of
well-fortif1ed guarantees. Speaking o.
guarantees. one OF the features In the
weakness of the Gould stocks is found in
the fact that Denver and Rio Grande and
Rio Grande and Western are virtually
guaranteeing the fifty million-dollar bond
issue ffOated a year or two ago for the
construction of the Western Pacific from
Utah on to the coast. These two COM
panies, which are owned by the Missouri
Pacific, are pledged to the payment of in
terest on this fty-million-dollar bond
issue and for the payment of any deficit
which may occur in "mstanments on
handed Endorsement of the entire flotation.
receivership, however. would give re-
lief, and a good many people in Wall
street are saying that this is one of the
things in view.
The time is coming when a superabun-
dance Of cheap money In New York and
other reserve centers will become a lead
ing factor in the stock market. The cash
Is already beginning to pile up, and by
the list of June. if nothing untoward hap
pens, the idle surplus in banks will be
larger than ever before in the history OF
the country. With call money down to
to ~ per cent the temptation to put q
large part of this great capital in and be-
hind the stock market may prove ire
| sistible. Between the rate for call money
and the returns on many stocks and bonds
shows a scalping profit Of three to six
points The situation seems. therefore.
like to work for the benefit of prices, al
though the offsetting feature of hostile
politics will be a strong deterrent to &C
ton. The prevailing opinion is that ruling
Wall street sentiment is against any very
determined effort looking to- business re-
vival there being deep-seated feeling
that. no permanent good may be looked for
until after political tendencies shape them
selves more clearly for a return to ca M
ness and halt in demagogic WARFARE on
money and. on what money stands for. 1t
Is noticed in this connection that the an
nua1 hegira of rich men is beginning
earlier than. usual and that every ship
that goes to Europe is carrying important
personages- They are making their escape
from one to three months earlier than
usual. If they thought there would be a
likelihood of urgent need for their pres
selves to the other side. The king bee of
the bunch. Mr.. j. P. Morgan. is scheduled
to sail very shortly. -
Wall street hears a comforting runor
that the real play behind the candidacy
of William Jennings Bryan is that he is
standing as the whole thing in order to
prevent facttona1 wrangling before the
CONVENTION, ana tndI al the proper time
he will withdraw in favor of ticket
consisting of Johnson and Gray, or Gray
and Johnson. No aff1davits go with this
story.
The successful completion of a very
remarkable improvement about which
little is known is now In sight
refer to the McAdoo tunnel system. which
is designed to bring New Jersey into
ideal quick connection with New York.
These tunnels have been under construc-
ton for two or three years. and the enor-
nous sum of $45,O0O.OOO has been spent
on them..4 About $1,000 600 more will be
required, and the money is In sight.
These tubes when finished Will practi-
cally do away with the ferries now plying
on the Hudson, as they apply to passen-
gers. These ferries in the near future
will have to rely almost entirely on truck
ing. The first of the McAdoo tunnels
will go into use the coming week. Others
will be completed next summer. Ulti-
mately they will bring all the western
railroads having Jersey City and Hohoken
terminals within fifteen or twenty minutes
of all the railroad terminals on Manhat-
tan Island. and will be a great clearing
house for an enormous suburban travel
originating in the Jersey towns within
twenty-five miles of New York. The
original $4,000 600 expenditure was on
faith. The enterprise has been financed
by Harvey Fisk & Sons. but behind them
are a dozen or more great interests.