The times. [volume] (Washington [D.C.]) 1897-1901, 1901-02-17

its promoters believe it will save the rail-
| ways money. or in other words, increase
| their profits. This no one questions. And
| yet up to the present time few OF the peo-
/ pie that trade in stocks, outside of the
| inner circle, have taken this fact into con-
| sideratiOn in their estimates The pro-
| fessionals have continued to point to the
| Tact that prices are now higher than they
| were year ago. and much higher than
| they were five years ago. They have ar
| gued that therefore they are too high. II
| the insiders in the community of interest
| plan, Mr.. Morgan and his friends, are
1 right in their superstition that the plan
: VIII be profitable to the railways. their
| basis of estimating on the intrinsic value
| OF railway securities is probably quite
| distance removed from that Of the profess
| sional operators. The supposition in the
article in The Times yesterday was that
| the railways will save sl00,0O0,0OO and
| reore annually by their economies. This,
| ii will be seen, is equal to per cent per
| annum on two and a half billion dollars
| of stocks. The preferred stocks are all
| now receiving their full limit Of dividends,
| and this Sl00 600. Geo will therefore all go
| to the common stocks Add to this in
| crease of profits the other increase that
| Will come with the natural expansion OF
| the country's prosperity, and it will be
seen that there is ample reason FOR opti
nism on the part of Mr.. Morgan and his
friends. This outlook is not one on which
such far-sghted people as they might be
expected to sell out their holdings OF
stocks. With money on and 3 per cent
basis, stocks at their present prices. and
with their good prospects possibly may be
considered cheap instead of dear by them.
The last two days of the past week have
witnessed an unexpected development in
The market in the shane of a SharD adj
vance in the high priced securities gem
orally, while the low-priced issues have
been to a certain extent neglected, and
sold yesterday, If anything lower than
they were on Thursday. There are care
full but optimistic market people that
believe this movement should be oonsid-
cred keyIo the present condition of the
market
The professionals are at present bearish
for the most part. This is no new thing
with them, but during the pas few days
they have shown particularly strong
disposition to sell stocks short They
have said that the insiders are unloading
stocks all the time and that "A crash is
20 come shortly. The advances of one
stock after another they have considered
simply trick to make the market look
strong. They have especially advised the
selling of such stocks as the high priced
grangers and the Pacifcs. Such a fine
Burlington, Northwest New York Cen
trail. Pennsylvania, Rock Island. and Della
ware and Hudson does not agree with this
theory. On the other hand it is in en-
tire harmony with the suppostion that
the insiders are not selling their stocks
but buying more and that these big peo-
pie look for a level of prices much higher
than any yet attained. Such a movement
should, in fact. be considered bull ar
sument OF the utmost importance.
II the insiders are selling out their
stocks and have been doing for some
time past, it is an interesting question
why they should have moved Burlington
up six points, just now. when IT vas sag
ging downward slowly. but steadily in
way that would have been entirely sat
isfactory to them. This advance was not /
accomplished without the purchase of I
good many thousands of shares of the I
stock. And why should the iistless and /
even somewhat weak, New York Central 4
have been doomed to a higher price than 4
any ever attained by 1t before? If on |
the other hand, the insiders expect /
higher level of prices and consider stocks I
a good purchase, the switch from the low 1
Triced issues TO the gilt-edged stocks at |
lie present time is entirely natural. The |
w priced issues have been advancing |
IT three or four weeks, while the grang- |
s. anthracite coalers, and Pacifcs have |
cen neglected.