Life — April 18, 1901 — page 21: what you’re looking at

Machine-transcribed from the original scan — historical spelling and the odd misread are preserved.

Watt Srreer, Tuunsvay, Avgr7 11. HAT couplet of our youth: What goes up must come down, On the heads or on the ground. came very near being vividly illustrated in the stock market Monday. The break which some observers have pre- dicted with every fresh advance of prices seemed to be at hand. For a little while early in the afternoon there was panic In the air, but before the close matters righted themselves and with the sound of the closing gong every one gave a sigh of relief., 3 3 8 \ HE quickness with which the mar- ket rallied and in the face of a bad bankstatement isgood evidence that conditions are based very little on mere- ly speculative sentiment. The fewness of the stocks that were shaken out Monday on declines which in some cases reached more than five points goes to show that the feeling of confidence is not a theory, but a belief, and that holders have the strength of their convictions. 3 3 3 ODAY Mr. J. P. Morgan arrives in London, and news of what he is do- ing is awaited on this side with much interest. He has his finger in so many large financial pies that his move- ments are more important than those of any crowned head in the world. 3 3 $ § the creator of the “community of interest’ {dea Mr. Morgan has be- come a new Frankenstein in the world of money. The being he created was regarded as a perfect one at first, but as we become more familiar with it the question arises whether this creature may not have some flaws that make it dangerous to the community. In the case of the Steel companies, successful combination has unquestionably averted for the present and made Impossible in the future a most disastrous and, in its results, far-reaching industrial war. In that particular Mr. Morgan’s idea of combination was an unmitigated blese- ing. 3 % 3 UT there {s growing belief that it is not going to be so altogether lovely as applied to the railroad situation. The Burlington-Great North- ern-Erie combination, which at present - writing is taken to be an accomplished fact, leaves the St. Paul interest out in the cold so far as a supply of trans- ‘ continental business is concerned. The St. Paul is too powerful an organization to sit quietly by and permit Itself to be frozen out of an important part of its earnings. While crops are good and its joca] business taxes its facilities, the new order of things may be all right. But let a season of bad crops and business inactivity come along and with not busl- ness enough to go around we may see St. Paul and other roads similarly sit- uated cutting up some very nasty capers in the way of compétition. In fact, the prevalent suggestion that St. Paul ts al- ready contemplating an extension to the Pacific is a straw showing waich way the wind of the future may blow. 8 3 S* PAUL stockholders may properly K think their directors were a little bit stiff-necked in their refusal to consider the price Mr. Morgan is said to have offered to bring their road into the combination. The book value of St. Paul in flush times and getting its full share of all the business going, is a dif- ferent matter from the prospective value of the road acting by Itself as a local concern outside of the great combination controlling through traffic between the extreme East and West and North and South, and‘in many places competing with it in its local trade. $ 3 % UT Mr. Morgan has a pretty com- prehensive vision, and this detail of the present and future situation has probably not escaped the notice of himself and his associates. Later on the St. Paul directors may take a revised view of vse circumstances, and as Mr. Morgan has heretofore shown a dispo- sition to be generous rather than vindic- tive in bringing about his deals, Gt. Paul stockholders may be happy yet. 3 % ]\O-DAY'S closing price of Burlington shows that if the rate of exchange in the new combination 1s to be $22,000 of 3% per cent. bonds for each ten thousand dollars of stock the bonds are expected to sell at about 86. Back of them will be the security of the road it- self (subject to its existing bonds) and the guarantee of the Great Northern and Northern Pacific corporations. Elghty- six does not seem anexorbitant figure for such a bond, considering that it would net 4 per cent. interest and that the Northern Pacific general Hen threes are selling at 72 and N. Y. C. Lake Shore collateral three and a halfs are station- ary at 97, The new bond should be about midway between these two, so if the Burlington deal goes through on the 220 basis, 190 is not an exorbitant price’ for the present stock. 3 3 8 OHN W. GATES and his following of grafters are said to have ob- tained control of Colorado Fuel & Iron, which is pleasant news for the minority stockhalders and will conduce to their slumbering in peace.” Some per- sons profess to believe that Mr. Gates is acting for the United States Steel cor- poration in making the purchase, but the less confiding are of opinion that in this property he will have a very convenient sandbag with which to at- tack the stocks of the big concern when he gets ready to speculate in its securl- ties. 8 % 8 HE Rumor Foundry’s output this week wasn't up to the average. Its principal story was that the Goulds had bought Wheeling & Lake Erie, which to-day meets prompt denial by persons in interest. The story was based on the theory that this road would be used as a nk In the Missouri Pacific system's outlet to the seaboard, but with the Wa- bash-Grand Trunk traffic arrangement In effect for a term of years to come it would seem that one of the Buffalo-New York roads was the natural outlet for the Gould system. $ $ $ C ROP prospects indicate another good year’s business for the grain roads, and the only red flag in sight is the firmness of rates for money. High money does not always mean a cessa- Uon of speculation, but its appearance is usually a reliable danger sign. HEN the news reached the Street that the Teutonic with Mr. Mor- gan on board had encountered heavy weather a broker was heard to remark that there was no ground for alarm, for if Mr, Morgan could float the Steel Trust he wouldn’t have any trouble floating the Teutonic. 3 3 $ PHE biggest advance seen lately was on a sale of Morton Trust Com- pany stock at an advance of 200 per cent over the latest previous sale some- thing less than a week ago. $ $ $ HERD seems to be a watermelon concealed in old reliable Nor’west. A net advance of something Ike 27 points in two days on sales of 1,700 shares indicates an increase of dividend on the common 7 per cent. and perhaps an addition to the preferred’s regular dividend. A, Lamb,