New-York tribune., 1911-01-16
FINANCIAL MARKET
Bankers Have Large Corporation
Plans Under Consideration.

Bankers Have Large Corporation
Plans Under Consideration.
Stock market prices have made some
progress in the direction of higher levels
in recent days, but from current indica-
tions important movements are not
! likely in the immediate future, barring
/ the development of substantial change
| In the general situation. Many traders
appear to be bearish. and good sized
short interest is known to exist, but et-
forts TO bring about declines meet with
| little success, owing TO the fact that the
substantial banking following is not sell
ing stocks and is not prepared TO allow
the market to seek a lower level The
big men apparently are not in favor OF
other hand, they appear to he distinctly
opposed TO a bear movement Big men
have big plans under consideration that
will involve a large amount OF money,
and as a consequence they do not wish
TO see bank funds tied UP I'm bull opera
tions on the Stock Exchange, while In
order to make their plans when worked
| out effective they desire to maintain sta
bility in the stock market. Further
more. they are anxious to strengthen
Il a., hue md
vestment circles. as reflected in their
haste 10 straighten out the tsngle caused
by the failure Of the Carnegie Trust
Company and the measures they adopted
for this important work.
Weak concerns have been strength
ened and solar plexus blow has been
given TO mushroom financing and fren-
zied finance. Our leading bankers are
! in absolute control Of the banking situa-
I tion in this city. and they have reached
the conclusion that in the future con-
servative methods must be practised by
people who wish TO enter the local bank
| ing field Financial interests of the frs.
magnitude are not apprehensive over the
future of money and business in this
country, and they arc not looking for a
general upheaval in the event of Su-
preme Court decisions against the Amer
| lean Tobacco Company and the standard
| OIL Company Such decisions will lead
10 reorganization on a basis that will
conform 10 the law. Property rights will
not be injured by readjustment to new
conditions, and the railroads will not go
into bankruptcy II the Interstate Com
merce Commission decides that the
transportation companies are not en-
titled to higher freight schedules. The
railroads are pleading great poverty but
at the same time they are making plans
for the issuance Of new securities for the
purpose of perfecting their physical eff
cheney TO meet the requirements Of ex-
pected expansion in their business.
The Pennsylvania directors will ask the
stockholders OF the property at the forth
coming annual meeting for authority TO
increase the capital stock by SlOOOcO,-
600 Of which S40OOoOO0 VII. be offered
some time in the coming spring or sum-
NOR. The proceeds from this sale Will
be used in large part in connection with
the resumption Of construction work
along the line OF the road in New Jer-
sey and Pennsylvania, which practically
was abandoned following the panic of
! 1907. The main purpose Of the new
stock. according to common opinion, VIII
| be for payments upon the New York
( terminal and tunnel extension, but this
work is about completed. and arrange
ments for it's financing have been made.
Most Of the new money viii go into the
completion Of the roads SiX-traclt line
between Pittsburg and New York. and
for the construction Of additional large
freight yards. which arc expensive things
10 build Railroad men are figuring on
the needs Of the future, and they evil
IDENTIFY believe that the money and in
yestment markets are developing along
lines favora bic 10 the marketing Of new
securities in the current year. The in
crease in traffic may not come in 1911,
but il it does not develop i'm the next
twelve months it will in 1912 or the
year after, and the railroads arc basing
their construction policy upon the aver
age increase in business, figured on the
experience OF the past rather than upon
temporary fluctuations in the condition
of our industries
Denial was made last week that the
New York Central contemplated putting
out an issue of bonds, but it was OF A
technical character and merely meant
that such an issue would not be made In
the immediate future. AS a matter OF
fact. large financing propositions will be
taken up by the finance committee Of
the board OF directors in the current
year. while the same thing may he said
regarding plans of many other compa-
MES. From current Indications il will he
a year Of hcav. new issues Of securities.
The city soon will offer $GOG0OOO "A
per cent bonds, the success Of which IS
assured. Europe, it is learned, will be
glad 10 participate in the offering, and
bankers here are counting upon an ac-
five demand in the next twelve months
from foreign capital for our railway
mortgage issues and for the stocH Of
such companies as the New York Cen
tral and the Pennsylvania. First class
issues should find "A good market At
home There promises 30 be an aCCumu-
lation Of large amount of idle capital
al this centre in the next few months,