The times. [volume] (Washington [D.C.]) 1897-1901, 1901-05-05
THE STOCK MARKET TREND.
Real Leaders Out of Touch With the
Sensational Rise.


NEW YORK. May Whether this
week has marked the real close of the
highly speculative era in railway and
other securities. was a topic of general
discussion after the close Of business yes
terday The days stock trading had de-
veloped one fact, and that was that in.
terests always associated with bull move
ments in the past and who until now have
been classed as bull leaders have not been
in touch with the extreme upward move
ment that has been in progress since the
announcement of the merger of the more
important steel companies into the
United States Steel Corporation. The
representative of the most important in
terest in other bull movements and the
actual controller of important railroad
systems. one of which has been prominent
among those stocks which have had
sensational advance, said:
1.-THE entire market has been the result
of reckless speculation. There have been
no deals or consultations pending or I'M
der negotiation on which the heavy buy
ing could have been based. except the
Burlington deal. At one time l believed
there was n movement on foot to acquire
control of Union Pacific by the Northwest
road, but since then 1 found l was mis-
taken. There have never been any steps
taken by any of the other lines to acquire
control of Atchison. The Pennsylvania,
Rock Island, Northwest. and st. Paul
roads have existed for years, the Rock
Island earning 10 per cent and carrying
cash surplus of 5000, 900 today. without
Pacific Coast extension. and it cannot be
said that it cannot get along now without
it. This and the other roads originate
a firth ~ 20 OF Ar inc
and this business Is wanted at connecting
points. The idea that it is necessary for
road to extend from the Atlantic to
the Pacific is abou. as sensible as for
man flying a kite to want to hold the
string in New York and have the tail
drop in San Francisco.
THE situation was clear enough to
everyone here, but we knew it would
keep up until some ones foot slipped
or a stringent money market &C.
Cured. and then 1t would come to
an end. When the end comes, and the
market becomes reasonable and safe, peo-
pie like Mr.. Sage and his friends and NY
friends stand ready to take care of their
stocks. and the securities that have not
| shared in this sensational movement will
then be appreciated
The man making this statement is re-
garded by the best-informed people as
the most conservative operator in the
street With his associates, he has kept
aloof from the market. and has been ac-
tive in restraining buying of stocks for
some time. Russell Sage has also been
outspoken in his views and has made
many efforts to check the bull speculati ton.
An idea prevailed In many quarters that
Russell Sage's opposition to the bull
movement was due to his having sold
calls" and 10 his not having any large
line of stocks on hand, while the move
nent has been in progress.
Whether this is so not, 1t Is certain
that Mr.. Sage has been watching the
stock tape closely, and some of the callers
at his Office yesterday thought he was a
little wild in his manner when the early
advance in st. Paul occurred. 1t cannot
be said, though, that he has been a heavy
seller of stocks recently, or that he was
directly involved in the break in the mar
ket yesterday afternoon. Tie heaviest
selling in the past two days has been A
A. Housman a. Co. According to state
| ments made by members of the firm to
friends. they sold 10000 shares of stocks
on Thursday, and 100. 900 shares yesterday.
Chicago traded IN about 10000 shares. of
which two-thirds were sales. IL was cur
rent gossip on the street that Chicago had
been enormous seller of American
stocks in London.