FINANCIAL REVIEW OF 1888. 



331 





also by liberal purchases of bonds by the Sec- 

 retary of the Treasury. Toward the end of the 

 week an unsettled market in Boston, doe to a 

 further fall in Atchison, Topeka and Santa Fe, 

 affected the speculation here, bet supporting or- 

 ders caused the market to close strong. During 

 the third week it was announced that the finan- 

 cial embarrassments of the Atc-hison, Topeka 

 and Sante Fe had been relieved by the issue of 

 three-year notes for $7,000.000. secured by a 

 short second mortgage, but this had only a 

 temporary effect upon the stock, which steadily 

 declined, unfavorably influencing New England 

 and nearly all properties owned in or managed 

 from Boston. An abstract of the annual re- 

 port of the Missouri Pacific making unsatis- 

 factory disclosures caused a sharp faQ in that 

 property, and about the only strong stocks 

 during the remainder of the week were the 

 Yanderbilt specialties. Union Pacific, Rich- 

 mond Terminal and the East Tennessees, the 

 two latter being affected by the lease by the 

 former of the East Tennessee. Virginia, and 

 Georgia. In the early part of the last week 

 of the month one feature was a fall in Bead- 

 ing incomes, caused by doubts as to the 

 ability of the company to meet the interest, 

 and this decline affected the stock. Another 

 feature was a further fall in Atchison, Topeka 

 and Santa Fe on the publication of the annual 

 report. Then came a rise in the Gould special- 

 ties, assisted by a rumor, which was subse- 

 quently denied, that Mr. Gould had obtained 

 control of the Atchison. Topeka and Sax. 

 and this was followed by an advance in New 

 England, American cotton - seed oil, and in 

 other low-priced specialties. as a 



fairly strong tone to the market during the 

 first few c vember. and a very con- 



fident feeling that no matter what was the 

 result of the presidential election there would 

 be a more active speculation. On the day 

 following the election the market opened very 

 strong, but there was an immediate selling 

 movement, mainly due to realizations, assisted 

 by rumors of rate troubles on the trunk fines, 

 and the tendency was generally downward for 

 the remainder of the week. On the foBow- 

 ing Monday the announcement was made that 

 the New York Central had ordered a reduc- 

 tion of one third in the rates for west bound 

 business, the excuse being that some of the 

 other fines were getting traffic by cutting 

 rates. This caused free selling of all the trunk- 

 line stocks, confidence in the future of the mar- 

 ket was unsettled, the bears were encouraged 

 to raid leading properties, and the tendency 

 was downward for the remainder of the week 

 and until about the middle of the following 

 week, when news that the South western troub- 

 les were likely soon to be adjusted and that 

 negotiations had been opened for settlement 

 of the trunk-line differences started a covering 

 of short contracts which carried the market 

 upward. Then came news of large withdraw- 

 als of gold on special order for Berlin and 



London, and this again encouraged attacks by 

 the bears, but later the declaration of the usual 

 dividends on the Chicago and Northwestern 

 and a confirmation of reports that an agree- 

 ment had been made to restore rates among 

 the Southwestern roads brought about a recov- 

 ery, and the market closed strong for all except 



England, which was freely sold in conse- 

 quence of the dosing of the transfer books, 

 thus setting at rest rumors that there would be 

 a contest for control. The tendency was gen- 

 erally downward for the remainder of the 

 month, with a sharp fall in Rock Island as 

 the feature during the last week, but the trunk 

 lines were inclined to improve on news that a 

 partial agreement had been made to restore 

 rates on west bound business. In December 

 the course of this market was generally down- 

 ward until toward the close. During the first 

 week Atchison, Topeka and Santa Fe and 

 Missouri Pacific were unsettled and lower, and 

 the last-named stock sold at the lowest figures 

 recorded since 1884, but there was subsequent- 

 ly a recovery on the announcement that at a 

 meeting of the executive committee an order 

 had been issued to take no more business ex- 

 cept a: rer^ur.cri::-re nu-?. :: ::-~n iTiririrc 

 that the tariff had been cut about 40 per cent, 

 on some classes below the published schedule. 

 Toward the close of the week the whole market 

 advanced on news that rates would be restored 

 on the 17th on the trunk fines. In the second 

 week the tone was generally stronger under 

 the lead of the coal-shares, and it was also 

 favorably influenced by the declaration of the 

 usual quarterly dividend on Missouri Pacific. 

 Bock Island was, however, freely sold at in- 

 tervals in expectation that the dividend would 

 be reduced. During the third week the mar- 

 ket was favorably affected by united efforts on 

 the part of Western railroad managers to put 

 an end to the demoralization which existed in 

 that section and in the Southwest. Agreements 



formulated and generally signed to re- 

 store rates on freight on January 1, and to pre- 

 vent further cuts in passenger tariffs by with- 

 drawing tickets in the hands of brokers. To- 

 ward the close of the week an important 

 conference was held in New York, at which 

 were present the presidents of all Western 

 fines, except the Chicago and Alton, and rep- 

 resentatives of three leading banking-houses 

 with foreign connections, and at this meeting 

 it was agreed that the rates then ordered re- 

 stored should be maintained. This action was 

 regarded as definitely settling the railroad situa- 

 tion, the market responded in a very decided 

 rise, which was assisted by a manipulated ad- 

 vance in Delaware, Lackawanna and Western, 

 and the tone was strong at the close of that 

 week. The declaration of a 1-per-cent. quar- 

 terly dividend on Bock Island caused a further 

 fall "in that stock to the lowest figures since 

 1877, but it subsequently reacted. Early in 

 the last week of the month the market was 

 favorably influenced by the declaration of the 



