The times. [volume] (Washington [D.C.]) 1897-1901, 1901-04-01
STOCK MARKET COMMENT
The Morgan Boom Attracting Al
7-'s most Universal Attention.
A Far Greater Upward Movement
Than That Engineered by Flower
g Two Years Ago-BeIief That Prices
Are "HeIdr Up by the Syndicates.

~
Than That Engineered bs Flower
Two Years sgo-BeIief That Prices
Are s'HeId' Up by the Syudicates.
NEW YORK. March 3l-Wan Street is
attracting more attention than at any
time before since the Flower boom two
years ago. The Morgan boom is far
greater than the Flower market was in
every way-inclusive Of its spectacular
erffcts The tragic denouement OF the
Flower boom in the death Of its principal
actor is not likely to find any counter
part In the present campaign. however.
and il is therefore to be hoped that such
a tremendous smash of prices fol-
lowed Mr.. Flowers death viii be lacking
also in the climax of the present market.
But that there must come a break in
prices, and a serious one, at some time
in the near future nearly everyone seems
to believe
The questions are being asked in Wall
Street with more and more frequency. as
the steady rise In the general price level
continues who is buying the stocks for
which such urgent bids are in the mar
ket and what does the buyer propose to
do. with them? II a mob of speculative
outsiders were clamoring for stocks which
"iIlsiders'' have for sale, as was the case
in January and April Of 1899, the market
would be easy to understand. FIXING OF
prices would then be governed by moth
ing but the duration Of the publics craze
In greater or less degree, this element ex-
lists in the present market. But II is not
a controlling factor-certainly not in any
such sense as it was two years ago. a
very large part of this outside element is
skeptical over the market and sells, there
fore. quite as readily as it buys.
During the earlier stages of the move
ment institution buying played an impor-
tant part in decreasing the supply of
stocks But this propelling movement
must necessarily have slackened and dis
appeared as prices rose far above the bar
gain basis. 1t is impossible to conceive
Of banks and trust companies as whole
sale buyers at the present level. EXecu-
tive boards who were to follow such
policy would encounter some instructive
comment at the next meeting of the COM
p5ny.
Where shares are bought for control,
with the shrewd purpose of selling them
over to a second corporation and letting
the public eventually raise the settlement
money, the violent rise in prices is In
eVitable. To this buying, also. there must
he some limit But the extraordinary fact
IN this seasons market Is that even when,
as with the St Paul some weeks ago, the
plan Of acquiring control of a property
meets failure, there Is no sudden and con-
tiuuous break Of prices. Most of the peo-
pie who bought stocks under such condi-
lions have seemed content to hold. Yet,
granting this fact very little light is cast
on the question who really holds 1t. 1t
Is difficult to believe that people who
bought the shares for investment,
month ago. are still buying at present
prices. But If not buying, they are ap-
parently not yet selling, and In many
quarters of the market some one else is
putting in buying orders.
1t Is "A prevalent belief that the stock
market is being held by powerful syn
dicates. pending completion of various
railway combinations still under confer
ence. The motive for effofts Of this kind
efforts which seem to be traceable in
the money markets. plain enough Such
stocks as the syndicates buy in their
pending operations the public must take
up later--either directly, as in the case
of the st. Paul, or through substituted
new security, as with the Erie, Pennsyl-
Vania, and Southern Pacific undertakings
crash in the market, frightening
away these expected outside buyers, or
convincing them of cheaper bargains lat
er on. would seriously hamper the syndt-
Gates. Probably such an accident would
upset and defer some extensive plans al
ready announced as under way. This
part of the syndicate attitude lends in
terest to the progress of events. That
stage escapes one Of three pitfalls for
the nanipulator-high money rates, Sc
riOus disappointment in some attempted
and expected deal, or really bad news
from some unexpected quarter
The possible influence of news develop
ments has been shown very lately by the
action Of the coal stocks. Nobody seri-
ously looked for a strike at any time;
Yet the chance Of it halted for some time
that quarter of the market. Now that
the danger is announced TO be positively
past, there is a corresponding recovery.
The truth is, however. that the result of
the coal negotiations is drawn victory,
and possibly victory for the union.
The mine owners, individually, have as
serted their independence, but capital,
which stands behind the mine owners,
has shown distinct timidity. thus en-
couraging the union for renewed efforts.
If as the union leaders claim, capitalists
who control the operating companies
tien Of MIR. Mitchells union later on.
then they have sOwn the wind to serious
purpose. All goes well while the owners
are able to grant whatever the union de-
mands. and that has been the case this
season. Some time. however, the union
will certainly ask too much or the owners
be too straitened to grant anything what
ever.
II would be the irony OF fate If. for the
purpose Of avoiding obstacles to the COM
means 10 defy the demands of organized
labor In the future. the hands of labor
were deliberately strengthened. Yet TINS
Il apparently what has happened. AL
ready the yielding of capital. for political
motives in 1900 and for financial motives
IN 1901 has gone far to ensure successful
construction of the enormous labor com
bination which is likely. by all precedent.
90 confront the industrial company con
foiidations created since 1897.