Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-11-19
Wall Street Impressed.

Wall Street Impressed.
Then, too. the talent of the stock ex-
change is immersed just now in grandiose
calculations of how the Hartman rail-
ways are going to be able to disclose the
addition of from 500, OO0. 600 to 100000
of new assets. 1t is difficult to trace the
origin of this waggery Yet professional
Wall street is impressed An earlier rev.
elation is likely to be that instead OF new
millions in assets there can be some tens
of millions of new bonds.
Under all the circumstances It Is DIM
cult to find warrant for any outsider
making new commitments in the market
for shares that are priced SO much above
par as are Union Pacific and the Coalers.
Money is cheap-phenomenally so. Euro
pean balances in favor of the United
States run beyond any easily quoted prec-
edent. Differences in what we have sold
to Europe and what Europe has sold to
us during the present year may be fairly
estimated we'll beyond a quarter Of bill
lion dollars In our favor-while American
bankers have coincidently become lead
ers at every European capital, gigantical-
y-perhaps to the extent Of quarter OF
a billion more. And Europe cannot this
time pay it's American debts by shipping
American securities back home, for
Europes exigencies have been such in re-
cent times that European holdings Of
American stocks have been already lqut-
dated American stocks having been sold
for the reason that when Europe had to
sell something 1t was the American Sc
curity that offered the readiest market.
Especially notable features characterize
ing the present market situation onertng
rare opportunities. appear in the list or
stocks which are selling for almost moth
ing. Hooking Coal and Iron, in which
James r. Keene's sensational pool came
to grief, is now reorganized. and under
new name will soon be quoted upon the
stock exchange at few dollars per
share, with prospects of profit making De-
yond any that it had when formerly the
alertest traders in Wall street were buy
ing 1t in One-thouSand-share lots above
$50 a share. And Mercantile Marine,
which ]. P. Morgan sponsored half a doz-
en- years ago as the greatest shipping
combination In the world, Is now at bar
gain counter prices with prospects which
may at any time be officially revealed of
revivification, for with the opening of the
Panama canal there will be opportunities
hitherto uncalculated.
Chicago Subway Example.
Chicago Subway is another example in
this class. it's reorganization closing next
week Not SO very long ago that stock
was also above $50 a share 1t was Of
fered this week at 25 cents. Yet the
actual Chicago Subway record has been
one of progresSiveness. 1t had one special
misfortune-its control fell into the
hands of multi-milionaires immersed in
other and greater enterprises-Mr. Ar
mour of Chicago, Mr.. Hartman of New
York. These interests are now investing
new millions in the undertaking In the
form of paying assessments" upon the
old securities one result of which Is the
elimination of lesser stockholders indis-
posed or unable to put up further capital.
In view of the peculiar circumstances. 1t
seems likely that he holders of the new
securities will quickly benefit, for while
only S60OO,00O bonds are to be issued
($14,OOO,OOO kept available for expansion),
there are earnings already established or
fairly in sight which warrant the ex-
penditure of the $50 100000 already in
vested in the property
Memory does not have to go back very
far to recall when Union Pacific and
Reading and Northern Pacific and Atchi-
son and Baltimore and Ohio were all in a
similar derelict class, all under assess
ment. any one of them purchasable for
dollar or two a share. Nothing has ever
SO well paid in Wall street as such long
shots.