Decen.    / 6,  1902.





RECORD AND   GUIDE.





837







Busiifess aiJdThemes OF GeWei?^ IKtcr^I.
PRICE PER YEAR IN ADVANCE, SIX  DOLLARS

Pablisfied eVery Saturday

Couimunirjations should be addressed to

C. W. SWEET,   14=16 Vesey   Street,   New YorR

I. T. LINDSEY, Buaineas Manaper                             Teleptione. Cortlandt 3157

"Entered al the Post Office at N'ew Tork. JV, F., as second-clans matter."





Vol. LXX.





DECEMBER 6. 1902





No. 1812.





AFFAIRS in Wall street stand exactly as may be expected
under prevailing circumstances. Ruling rates for money
are high and the interior continues to call for funds in consider¬
able volume. Some shipments of gold were made this week, a
million d«llars in all, destined for South America. These ship¬
ments were for London account, and while not exactly equiva¬
lent to a direct export to Exirope, the difference is very slight,
and at any rate 'the incident reveals an ability on the part of
London t« draw gold from this centre at convenience. In view
of these facts, it is not surprising that prices are weak, nor is
it natural to expect that the direction of the movement will
change until money is easier to obtain and at lower than the
prevailing rates. Under the circumstances the market has be¬
haved very well, and it says something for its latent strength
that the fall in prices has not been greater. Opinion generally,
as openly expressed in stock market circles, calls for lower
prices, but there is something back of the situation that prevents
anything like organized bear operations. The courage is more
verbal than practical. Professional selling is rather experi¬
mental and covering quickly follows any signs of strength.
Liquidation of course proceeds as it must in times like these,
but that and the selling for short account together are only suf¬
ficient to produce a dull sagging market. To-day's bank state¬
ment is expected to reveal a heavy drain upon New York's re-
Bources and to be the sign for a sharper attack on values, hut
it would be characteristic of the stock market to refuse to
gratify the latter expectation. A week ago the meeting of
Congress and the publication of the President's message were to
break prices, but it is difficult to see that they had any influence
whatever, as the money factor is fully sufficient to account for
every fraction of loss that has been seen this week. As was the
case then, the course of the market depends upon the acute'ness
of the demand for money. Loaners are insisting upon big prices
for their accommodations, keeping their funds in hand as much
as possible, as if they looked for an increase in demand. The'
coming week should demonstrate whether they are justified in
their policy. We look for a strong money market until the end
of the year.





UNDER the persuasion of increasing traffic receipts, invest¬
ors are returning to the leading British railroad stocks
whose prices are advancing. This is one of the favorable fea¬
tures of the situation abroad, and is significant of a revival of
business in Great Britain at least. Opposed to that is the in¬
vestor's indifference to Governments and Colonials, but this does
not detract from the conclusion drawn from the first stated fact.
Consols are at their lowest and Colonials are water-logged in the
hands of the underwriters. The London "Economist" gives a
list of recent Colonial loans making a total of $35,000,000, which
were either whole or partial failures, and are now sellmg from
one to four per cent, below issue prices, If there was no more
success with Industrial and other issues, it is no wonder that
money is scarce and in demand at financial centres. On the
whole there is not much difference abroad than here; invest¬
ment business is stagnant and money is high, with no hope of re¬
lief before the New Year. The Bank of England rate remains
unchanged. That is the situation as regards the financial
centres. Outside of them there is improvement, more notice¬
able in Great Britain than elsewhere, and while rumor is busy
with impending calamity, notably in the German iron trade;
there is good prospect for a smooth settlement at the close of
the year and a better outlook for the coming spring. It is un¬
derstood that for technical reasons discussion of the tariff bill
cannot be finished before the Reichstag comes to its legal end.
This is rather favorable to a resumption of business activity
than not. Among the items of news that encourage the hope of
better things for the coming year are these: The business out¬
look in Argentina is in a stage of bettering, according to a cor¬





respondent: "The general position of affairs is showing un¬
equivocal signs of improvement after the prolonged crisis." A
special report on the requirements of South Africa states that
within the next five or six years the Rand alone will require
new machiuery and plant to the value of ?125,0OO,OOO to $150,-
000,000. This is a sample of the material requirements of South
Africa in the process of regeneration. Natal proposes spending
$15,000,000 to $18,000,000 for new railways, and so on. It is need¬
less to point ont that a revival of business abroad would beneflt
us here, and this particularly so if we are arriving at a stage
when surplus production begins to show. It will be much more
profitable to carry that surplus to a foreign market in which de¬
mand is good than to one apathetic and dominated by the buyer.





Our Railroad  Improvements.

OUR two important railroad improvements continue to oc¬
cupy the front of the municipal stage without any change
in the feeling each has aroused in the minds of the audience.
The Pennsylvania Railroad tunnel is still delayed by the ob-
ytinacy of a few men who in their daily speech reveal their utter
incapacity to understand the question which, for its sins pos¬
sibly, the city has elected them to decide. The absurdity not
only of the attitude, but of the position in which the city has
placed itself is heightened by the fact that no less than seven
millions of people are directly injured and inconvenienced by it.
It is estimated that this number of people will be immediately
benefited by the linking together of Jersey City, Manhattan and
Long Island, which it is proposed to effect. All the time the
clowns and pantaloons who are holding back this great work are
pretending to be acting in the interest of the tew compared with
the benefited mass, who would earliest profit were physical work
put underway, namely, the workingmen. Only a satirist with
a genius for opera bouffe could do justice to such a situation.

It unfortunately happens that Governor Odell has probably
given encouragement to the recalcitrant fragment by what is at
best a hotel corridor opinion, thrown over the shoulder to a cling-
ingreporter.totheeffectthat legislative action in this matter over
the heads of the Board of Aldermen would be unconstitutional.
If that is the Governor's opinion, it is a pity he did not deliver
it under more convincing circumstance and in form justified by
its importance. Why he should have said anything of the kind*
and in this stage of the discussion is incomprehensible, espe¬
cially as he could not know in what form the Legislature would
be asked to act, for the simple reason that nobody does know,
it not having been decided yet. Although such an incident would
be consonant with the whole case, it is probable that before long
a different view will be expressed of the legal side and the alder¬
men will not find themselves so much strengthened by the Gov¬
ernor's opinion as they think. If it is true that the constitution
secures to the city alone the right to grant franchises tor rail¬
roads within its boundaries, it is also true that the choice of the
agent by which the grant shall be made is with the Legislature.
It would be possible then not only to take away from the Board
of Aldermen decision in this matter of the Pennsylvania fran¬
chise, but in all similar matters and bestow it elsewhere, pre¬
sumably with the Board of Estimate and Apportionment, which
under the circumstances will probably be found the only thing
to be done, if the city is not to suffer the damage that results
from restricted development.

The other railroad improvemor.t, ths changes sought to be ef¬
fected by the New York Central on Park avenue, is also not
without its farcical feature. The situation is improved by the
offer of the Railroad Company to depress their tracks in accord¬
ance with the wishes of the owners of adjoining and contiguous
property, but at the same time they incli::'^ in the programme
other changes on other portions of their <;• .'s within the city,
and coolly ask that the city bear a portion oi: the expense of all.
This request is backed by the old-time humbug that the railroad
contributes to the prosperity of the city and the convenience
of its citizens. Of course it does, or it would never be tolerated,
nor would it be built if "contributing to the convenience of this
city"wereuota very profitable occupation. But this argument haa
beenfoundeffective before and the management of the New York
Central, doubtless, think they would be neglecting the interests
of their stockholders, if they failed to work it for all it is worth
now. What is done is done, but if the bargains under which New
York Central came into the city and has developed since could be
remade, there would have to be a heavy readjustment of ac¬
counts. Without going into that, there are special reasons why
the Railroad Company should bear the whole expense of this
improvement. In the first place there is the attitude of the
Pennsylvania Railroad Company, who are ready to spend several
times any amount likely to be spent by the New York Central
Railroad Co., besides incurring a permanent rental for their
franchise, and who are asking for no pecuniary favors.    In tbe