The Washington times., 1901-07-23
MR.. MORGAN'S GREAT POOL.
Two Hundred Millions to Hold Up
Steel Stock Prices.

NEW YORK, July 22--The great s2o0.-
600 fund subscribed by Mr.. Morgan and
his partners when the Steel Trust was
formed, for the purpose of holding the
price of its securities up and making
them attractive while they were being
foated, is being utilized effectively now.
Mr. Morgan may not have expected the
steel strike when he formed his trust but
it becomes quite evident that no better
reason could have existed for such fund
than this very revolt of the employees of
the great corporation.
1t is certain that the tumble in the
prices of these securities would have
been much worse than it has been except
for the immense buying of Mr.. Keene
and his lieutenants during the past week.
Some authorities say that but for inside
support the preferred would have been
likely to break to 60 or 20 and the common
to % or 30. The pool has taken every
share of stock offered below the market
price. This means that the pool has
bought so far in the open market nearly
100000 shares of the stock.
With $40, 900 0l0 cash-20 per cent of the
POOLS resources-it expects to be able to
sustain the market, no matter what bad
news or Industrial depression may come
during the summer.
James K. Keene, the shrewdest manipu-
latOr i'll the speculative world, is under
stood to be the manager of the poC'.
Mr.. keene is operating through Bell &
Co., A. A. Houseman & Co.. Talbot j.
Taylor 4 Co, Street & Norton, Wasser-
man Bros, and half dozen other
houses who are known for their shrewd-
ness in executing orders.
While the composition of Mr., Morgan's
pool cannot he ascertained definitely, it
is said to Include ]. P. Morgan & Co.,
Kuhn, Loeb & Co, the Bank of Com
merce the Morton Trust Company,
Thomas +. Ryan, p A. B. Widener.
Moore & Sehley. the Chase National
Bank, Bell & Co, and A. \. Houseman
& Co.
Mr. Morgan has still a large quantity
of Steel securities which have not been
marketed. The total issue is $3.50 1900
of common stock and s55OOO0,O0 of pre-
ferred.
That Mr. Morgan has the situation well
in hand is shown by his statement issued
on Friday After this statement became
public in Wall Street there were breaks
throughout the market. st. Paul declined
31l, Rock island 21a Missouri Pacihc,
3ia Atchison 37s, PENNSYLVANIA "a, Read
ing 2ls Unian Pacific 5lz. Wabash pre-
ferred 2a,. Sugar 3is Baltimore and Ohio
2s, General Electric 61H Illinois Central
~, New York Central, rs, Texas Pacinc
3Ss while Steel common and preferred,
the stocks most affected by the strike.
show declines of only ia and Us. respect
lively. trs
on Saturday when the bears attacked
the entire stock market and reports of
crop damage in the West were renewed.
the Steel stocks alone showed strength
The common opened at s9s4, and on trans
actions of over 1900 shares showed 1luc-
tuations of only q per cent. on transac-
tions, in the pseferred of over 5000 shares
the price fjuctuated within range of IS
per cent.
Union Pacific. however. declined from
1919 to .93k. Atchson declined from 7i7s
to u Chicago, Milwaukee, and St Paul
dropped from 164 to 1885. and even Penn
sylvania. New York Central, and similar
securities made considerable declines.