The times. [volume] (Washington [D.C.]) 1897-1901, 1901-03-25
STOCK MARKET COMMENT
Wonderment Over Continuance of
the Advance Without Recession.


Belief That "A Reaction Is Likely In
the Nenr Futurc-Thc hull Move
mcnt Not Over. Howcyer-Prosper-
ity of the Railways UnexampIed.
NEW YORK, March 24.-The recession
more or less important that many careful
Wall Street people have been looking for
during the past week, has not yet ap-
ueared Shrewd traders. who have been
expecting a reaction went home yester-
day marveling at the power of the opera
tors. but still confident that the upward
swing can continue but a short time
longer without leading to a sharp set
back. Who ever watched the tremendous
sweep of the market last week must
have been convinced that the advance in
many stocks of from two to five points
d day was unnatural; that it was part OF
a broad scheme of manipulation. The
speculation has been of kind that
forced the outsider into the position OF
huyer. He has had a multitude OF
chances for large gains so long as he &C
cepted the general trend. That he should
be allowed to sell to advantage was not
part of the original scheme. This condl-
ton was apparent time and again III
those issues under manipulation where
purchases Of 5000 shares would advance
quotations two points, hut the acludi
sale of 500 shares demoralized their mar
ket When the reaction comes IL is hke-
" to extend several points and TO con
tinue for a week or more. Conservative
people are expecting it, and Will not DE
hurt.
But despite this looked for halt IN the
advance the best opinion of the market,
looked at broadly, is that the pooih - not
We. over. that it is likely to continue Tor
months to come The recession Is Simply
ON incident. due to technical conditions
conservative brokers who have made a
careful study of the railroad situation and
the future of the best class of railroad
securities are advising their clients TO
sell their low interest bearing bonds and
invest in high-ciass stocks on recessions.
ST. Paul. Great Northern, Burlington
Rock Island, Northern and Union racine
and the others of the great group Va
granger roads whose earnings are reheet-
ing the prosperity which prevails IN the
Middle West have been faNor1tles with
the investors Even at the high prices
which these stocks have reached they are
showing much larger returns TO their
builders than are the better class OF
bonds, and the continuity of their dlNl-
dend returns is reasonably assured for
many years to come.
of course, the reads are to great ex-
tent dependent upon good crops for their
prosperity but the same is true of near
~ every other class of business in the
country. Prosperity; as one of the
sages of Wall Street has said, is liter
ally dug out of the earth The granSers,
however. are less dependent upon the
actual movements of grain for their earn
ings than ever before. The commercial
frrn 11-fh of he
diversified the character of traffic over
these lines. Wheat forms less than 6
per cent of the aggregate tonnage of the
Chicago. Milwaukee and st. Paul Rail-
road.
The railroads, however, have taken to
heart in recent years the lesson of the
Jean kline and are laying up large sur
pluses against the years of adversely.
There is scarcely one of the great grang-
ers that has distributed among its stock
holders anything like all its net earnings
applicable in dividends.
The most important bull point of the
week was the announcement by j p.
Morgan < Co. that there had been de-
posted from "a to IS per cent of the
preferred stock and from 90 to 80 per
cent of the common stock of the steel
companies which have been included in
the United States Steel Corporation.
This announcement took Wall Street
somewhat by surprise. there has been
some doubt as to the success of the deal.
The fact that no obstacle that is worth
considering now stands in the way of
the contamination of Mr.. Morgan's great
undertaking has inspired greater conf
dence than existed before in the financial
outlook. II is believed that the interests
behind the deal are committed to a sup
port OF the market and to a sustained
effort TO keep money rates at the normal
for at least year and perhaps longer.
When IL is remembered that two of New
York 8 greatest banks and half dozen
of its leading trust companies are mem
beers of the syndicate, there is little doubt
of the ability of this group Of financial
interests to prevent overinfiation of in
terest rates or to restrain the agencies of
which may assert themselves
from time to time. The power of these
banks was shown during the panic of a
year ago by the National CITY Bank
when, for several weeks the rates for
call money were absolutely fixed by this
institution, without regard to the laws of
supply and demand. Combined with the
Morgan banks and the trust companies
this money combination is apparently an
irresistible force. and as long as it has
an interest in doing so its influence will
be eXerted for good.
There is much amusement in Chicago
according TO gentleman who has just
come from that city, over the fine bar
gain Judge Moore has driven with the
said that Judge Moore's friends were
greatly surprised at the good terms he
was able to make with Mr.. Morgan. The
Moore interests looked upon the forTna-
ton of the great combination with con-
siderable alarm. They knew that they
could not safely remain outside of the
fold and they felt great apprehension
lest they should be given a much lower
rate of percentage than the other steel
companies. II is said that they would
have been abundantly satisfied to have
been taken in at par, and that they ac-
tually expected a much lower rating.
The art OF blufiing is an accomplishment
with which business men from Chicago
are not totally unfamiliar. and Judge
he III.
intense surprise and great satisfaction
he was successful. and now there is a
broad smile from the Ferris Wheel to
end of the drainage canal