The times., 1901-04-17


i---------E------s1'-------
burlington announcement Money was a
tTinc easier. and the Secretary of the
Treasury purchased one or two small
lots OF bonds. but these matters probably
had no effect on the market The fear
that the employees of the United States
Steel Corporation may strike had de-
pressing effect in the morning, but this
was also dispelled by the Burlington
story. The copper deal is an important
one, but il cannot be learned officially
that it has been accomplished yet.
The repeated recoveries of the market
from its slight reactions, when the con-
servative people are continually looking
for something serious in the way of
break, has made the bears lose faith. 1t
seems to this contingent that the market
is never to go off. Some of the people
that were the most rampantly bearish
a month ago are now talking of con-
tinuauCe of the advance all this year and
next. The closing of the Burlington deal
on basis which to many seems almost
a ridiculOusly high price makes even the
best posted people almost willing to i've
lieve there is truth in all the widest StO-
ries of consultations. 1t is asked why,
If Mr. Hill is willing to give $220 in 81
bonds for Burlington stock 1t should not
sell FOR 2jU from now on and go out OF
the market into the investment boxes en-
tirely. TX is asked in the same way why
St. Paul should not so out of the market
sylVania at 200. There are no more bears
and the public is buying more and more
eagerly.
Nevertheless the market is dangerously
high, and the people that are doing most
to continue the boom know this better
than any others. Prices are far above
their legitimate level, measured by earn
ings and prospects, even though these
prospects be the most rosy. OF this there
can be no question. When the specula-
tive fever is over there viii be break
and q bad one. The insiders, and Mr..
Morgan and Mir Hill are at the forefront
Of the clique, are gambling on Just how
far the movement can be carried. The
only difference between these gentlemen
and the public is that they WIN elther
way and the public can only win by get
ting out, which it win not do, the greater
part of 1t.
a man Of the first rank in Wall Street,
in close touch with Mr. Morgan, as one
OF his first lieutenants, said to a Wash
ington investor who saw him in New
York on Monday: Many investors who
do not care what the price of their secu-
rites is in the market, so that they feel
sure of their dividends, have not sold out
in the present market. There IS even all
the time some buying for these people.
But TO the ordinary operator in stocks
the present level of prices is dangerously
high. This statement can be construed
in only one way 1t means that this gem
Washington friend to sell out his Bur
Iington bought at 135 and his Rock Island
bought at l20. And his advice is un-
doubtedly good.
The facts regarding the copper deal,
a 8 far as they have become pubnc prop
erty are that holders of the stock OF
Butte and Boston and Boston and Mon
tana have been invited to deposit their
securities with d New York f1rm, for the
purpose of attempting to consummate a
. lRg Av7,lf ffr.qy Tod n
pauv. on its face this does not mean,
of course, that the deal is assured, but
some of the well-posted people in the
street are OF the opinion that II Is rea-
sonabiy sure They suggest that the pub
lie bid for stock hardly would be made
unless the insiders had already secured
controlling interest in the stock. There
is much bullish talk regarding Amalga-
mated. and the people that at par were
predicting rs for il are now saying that
1t will go TO $50 this week The move
ment has reached its dangerous stage,
however. The high price yesterday was
1854 and there was reaction from that
figure 10 1855 at the close
The abandonment Of the proposed glu-
cose factory at Weehawken is used as
bullish argument on Sugar stock. SO,
also. is the outlook for an advance in the
dividend rate for the coming quarter The
stock was one Of the most buoyant yes
terday and sold at one time at l5lA. 1t
closed at $50.
Burlington sold at 1875 yesterday after
noon, making an advance from 1872 for
a low price. It closed practically at the
top, with good buying until the last sale.
An advance to 200 Is not unlikely, but
neither is a steady decline from the open
ing this morning. The stock is too high.
Mr.. Hill could never pay the present price
for il and hope to realize any profit on
the transa ction. He could not pay the
prices that he has paid, much longer, and
make any profit, except by selling out at
a better figure, and 1t is exactly this that
he is doing now. II he does not sell out
all Of his stock now he viii sell the bonds
later. 1t is only by selling that he can
hope 10 escap pc a loss. Mr. Hill is in the
present market to sell. Conservative peo-
pie cannot afford TO make any mistake
( about this. The Burlington is not earn
ing a penny over the 352 per cent interest
that is TO be paid on the 500 In bonds
doubtful If even this fixed charge can be
earned In less buoyant times. But these
facts should not be construed as meaning
that it will be safe TO go short of Burl-
ington. Mr.. Hill and Mr.. Morgan are the
finest people that ever went into Wall
Street 20 control things and they can
! afford to play long game.
Northern Pacific doomed up to 1851, ex-
dividend, equal TO 1861. It closed at 104
The squirt accompanied that Of Burling-
/ ton, and was, of course, due to the same
! cause This stock looks high also, but
in the same way that Burlington has
/ advanced when II looked high, so may
this stock. The rumor of the retirement
/ Of the preferred stock at par is helping
( TO sustain the common. The preferred
went TO 973s yesterday and closed practi-
+ cally at the top.
The new Steel securities were well sup
ported, but there was heavy liquidation
: ia the all day, owing TO the talk of a
/ possible general strike of the employees
-------------------
Z. @ ee(trii !