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FINANCIAL REVIEW OF 1899. 



effect upon the speculation in these properties. 

 The beginning of hostilities in Manila between 

 the United States troops and the insurgents had 

 some unfavorable influence temporarily. During 

 the second week in the month there was an ir- 

 re<nilar recovery, aided by the subsidence ot the 

 political tension between England and France, 

 above noted, and the sympathy aroused by the 

 sudden death of President Faure seemed to con- 

 tribute to a better feeling between France and 

 Great Britain. A domestic event of a partially 

 unsettling character in the second week was a 

 phenomenal storm of snow which swept over the 

 Middle States, and the storm was more or less 

 severe in all parts of the country. The move- 

 ment of freight on the railroads was interrupted, 

 and the stock market was heavy until the end 

 of the week, when there was a recovery in prices, 

 with the anthracite coal shares leading, these 

 being affected by the improved condition of the 

 trade and by an 'advance in prices of the product. 

 The market was active and generally strong for 

 the remainder of the month, though at intervals 

 irregular, in consequence of realizing sales. The 

 unsettled state of affairs in the Philippines and 

 a rumor, subsequently denied, that the American 

 fleet in Manila had sunk a German war vessel 

 had a depressing effect upon the market early 

 in March; but it was observed that there was 

 good support to railroad mortgages and to in- 

 vestment stocks, and prices speedily recovered. 

 One favorable circumstance, it may be noted, 

 was the adoption by the stockholders of the 

 Central Pacific readjustment scheme. A firmer 

 tone for money had a partially disturbing effect 

 upon stocks soon after the opening of the month; 

 but the tension was promptly relieved, whereupon 

 prices recovered. One feature in the second week 

 was an advance in some of the recently organ- 

 ized industrial properties, and there was excep- 

 tionally good buying of American Sugar Refining 

 stock on a report that the differences with the 

 opposition company had been adjusted. The de- 

 nial of this report, however, caused a sharp fall 

 in the stock ; but this decline had no particular 

 influence upon the rest of the market, which was 

 strong, under the lead of the Anthracite Coal 

 stocks, the Granger shares, and Brooklyn Rapid 

 Transit, the movement in the latter being due 

 to a report, later denied, that control of the Long 

 Island Railroad had been obtained. The improve- 

 ment in the industrial situation and in railroad 

 traffic rates contributed greatly to the strength 

 of the market for the remainder of the month. 

 One notable movement was a rise, accompanied 

 by large transactions, in New York Central, Chi- 

 cago and Northwestern, and Union Pacific. The 

 market, as a whole, w^as more buoyant in the 

 closing days in March than it had been at any 

 time since January; and this, too, notwithstand- 

 ing the fact that the rates for money were un- 

 steady, due to exceptional causes, and also that 

 the railroad net earnings for February indicated 

 the effect of the heavy snowstorms in that month. 

 Activity in money on call and more decided dis- 

 crimination by lenders against the newer indus- 

 trial stocks caused the market to open active and 

 lower in April, and there was quite general liqui- 

 dation during the first week. The attitude of the 

 banks toward the industrials was felt to be justi- 

 fied by the fact that, since the beginning of the 

 year, there had been vast amounts of these stocks 

 placed upon the market, and it was asserted that 

 they were a menace to the situation. The re- 

 marks of Secretary Gage at the centennial anni- 

 versary dinner of the Manhattan Bank seemed 

 to call public attention to the dangerous over- 



capitalization of industrial properties, and the 

 banks thereafter were even more rigid in their 

 discrimination against these stocks as collateral 

 on loans than before. While the industrial shares 

 fell off as the result of this discrimination, there 

 was good support to the better class of railroad 

 properties, and improved earnings of the prin- 

 cipal lines contributed to the advance in the 

 Granger stocks. Toward the middle of the month 

 there was a notable rise in the Vanderbilt prop- 

 erties, followed by a recovery in almost the en- 

 tire list, and, influenced by renewed evidences of 

 improvement in the iron and steel situation, and 

 also by easier rates for money, the market ad- 

 vanced. One feature was a rise in Great North- 

 ern and in Chicago, Burlington and Quincy, and 

 there was also good buying of Louisville and 

 Nashville and Southern Railway preferred. Sea- 

 sonable weather, encouraging reports regarding 

 the crop situation, large railroad earnings, con- 

 tinued ease in money, and favorable news from 

 the Philippines contributed to make the market 

 generally strong in the closing week of the month. 

 On the 1st of May stocks were unfavorably in- 

 fluenced by a rise in exchange to near the gold- 

 exporting point, supposed to be due to prepara- 

 tions for the remittance of the $20,000,000 in- 

 demnity to Spain, which indemnity was paid on 

 the previous Saturday by the State Department 

 to the French minister, representing the Spanish 

 Government. The disclosure on the following 

 day that the remittance would be made with ex- 

 change resulted in a partial recovery in stocks; 

 but the passage of the Ford franchise tax bill by the 

 State Legislature was an adverse influence, which 

 tended to keep the market unsettled for the re- 

 mainder of the week, and, indeed, during the 

 greater part of the following week, when the 

 selling was so liberal as to have a demoralizing 

 effect upon most stock values, and the greatest 

 declines were in the local traction stocks. Though 

 there were occasional recoveries, due to repur- 

 chases to cover short contracts, the movement 

 was quite irregular, with the first-class invest- 

 ment properties the strongest. On the last day 

 of the week the sudden death of ex-Gov. Roswell 

 P. Flower, who had been an active promoter of 

 Brooklyn Rapid Transit, caused an unsettling 

 fall in the stock of this company and in the 

 shares of other corporations in which his stock 

 commission house was 1 interested. The decline 

 was promptly checked, however, and by Monday 

 of the following week large supporting orders in 

 what were known as the Flower properties 

 brought about a recovery. The calling by Gov. 

 Roosevelt of a special session of the Legislature 

 to reconsider the Ford franchise bill contributed 

 to an improvement in the market, and, though 

 irregular, it was generally strong for the re- 

 mainder of the week and to the close of the 

 month, the passage by the Legislature of the 

 amended franchise law stimulating a rise in 

 the local traction stocks in the last week. 

 Railroad earnings continued to show increased, 

 and the exceptionally strong position of the 

 associated banks exerted a favorable influence 

 upon the general market. The tendency was 

 downward at the beginning of June. Higher 

 rates for exchange, the unexpected shipment of 

 gold to Europe, fears of the adverse effect of 

 the franchise law, antitrust legislation in many 

 States, and the outbreak of yellow fever at New 

 Orleans had more or less of an unsettling in- 

 fluence, and there was some manipulation by the 

 bear operators in the market. There was later 

 a recovery in the tone and a more active specu- 

 lation, influenced by favorable railroad earnings, 





