The times., 1901-05-05
THE STOCK MARKET TREND.
Real Leaders Ont of Touch With the
Sensational Rise.

NEW YORK. May 4.-Whether this
week has marked the real close of the
highly speculative era in railway and
other securities, was 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 a
sensational advance, said:
"The entire market has been the result
of reckless speculation. There have been
no deals or consultations pending or un-
der negotiation on which the heavy buy
ing could have been based, except the
Burlington deal. At one time L believed
there was movement on foot to acquire
control Of Union Pacific by the Northwest
road, but since then 1 found | 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 $1,000, 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
business and distribute 1t to other lines,
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 about as sensible as for a
man flying 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 stringent money market oc-
CURED. and then it 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 my
friends stand ready to take care of their
stocks, and the securities that have not
shared in this sensational movement Will
then be apprecia ted"
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 speculation.
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
n ent has been in progress.
Whether this is so or not, it is certain
| that Mr. Sage has been watching the
stock tape closely and some of the callers
at his Office yesterday thought he was
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. The heaviest
selling in the past two days has been A.
A. Housman Il 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 $1,000 shares. of
which two-thirds were sales. II was cur
rent gossip on the street that Chicago had
been an enormous seller of American
stocks in London