The Washington times., 1901-10-24
Government Bonds.

There was q fine upward movement in
the stock market yesterday. and espe-
ciaIly IN the last two hours of the day II
deserved to be called even boom. ne
Western railway stocks generally, the
grangers and the Pacitics led the move
ment. with gains Of from one TO three or
more points on very heavy buying, that
bore every evidence Of coming from in
side sources. The other railway securl-
ties generally were also strong, the VAN
derbilts and anthracites very little less
so than the Western stocks. The indus
trial list was neglected somewhat. but
fairly strong also. The size of the buying
and the rapidity of the advance made
the movement one of the best in recent
weeks, and it attracted wide attention in
the street and naturally gave rise to all
kinds Of rumorS as to its cause On the
whole, the chances do not seem to favor
more than a temporary rally at this time.
The underlying conditions are excellent,
but they have been as much for some
time past. The money market is not
menace rs long as the stock market is
quiet. but it is very evident that 1t would
be dangerous If big broad market were
to develop. The conservative people look
for a quiet, strong market for the pres
en;, and for higher prices later in the
year. when money begins to come back
TO New York from the West and South.
The fact that there Is temporary boom
in prices at the moment does not change
their views of the situation, any more
than the siumDs of two or three weeks
ago did. The advice to buy stocks on the
recessions is still given.
OF course. there is the possibility of
sustained advance now. Nothing Is i'm
possible in stocks Ii is possible that the
large interests wish to discount the easy
money market that may be expected next
month. Ii Is possible that they wish To put
prices up five to ten points before the
public begins to buy stocks. And II is not
impossible that they intend to bring out
announcements of Importance regarding
railway deals to help their movement
along. Some enthusiastic people took this
view Of the situation yesterday afternoon.
arguing that the buying of St. Paul ard
I'nion Pacific and the Vanderbilt securi-
tics was so large and important that only
inside people could he responsible fOI il
1odal $ market and that OF next week
will show if there is any foundation for
this view. but at present it is not held
by any great number Of people.
The Northwestern situa ion was again
the matter around which most of the
gossip centred. Late In the day there
WAS d rumor that the difficulty supposed
to exist between the Morgan-HIl people
and the Hartman Union Pacific interests
Will be left to arbitration. The rumor
went so far as to say that the arbitrators
will include Vanderbilt and will be three
Of the most important railway and finan-
cial men in the country OUTSIDE of those
directly interested. II does not seem i'm
possible that there may be some truth In
this story. If the street understands the
II
bitration might well be tested.
The Morgan-Hnl interests bought up
Burlington for the Northern Pacific and
the Great Northern. The Union Pacific
interests believed that this move would
be prejudicial to them throwing the hal
ance Of power too strongly into the Nor
gan-Hil hands They bought a large
block of Northern Pacific common. and
the majority of Northern Pacific prefer
red This caused the fight of last spring
ph ha
has been a truce. the nion Pacific peo-
pie having control Of the Northern Pa
ciflc, if both the common and the pre-
feTred securities are considered The
Morgan <Iill people. however own ,he
control OF the common stock. and Il pro-
vision OF the charter of the company is
that the preferred stock may be retired
al the beginning of any year, when the
company shall sec fit II is a matter Of
dispute whether the company here
means the stockholders. which would in
clude both the common ana the prefer
red stockholders. Of course, or only the
directors. The directors of the CompI ~
are Morgan people. and If they have the
right to act could retire the preferred
stock ON January J. This. in brief. is
the difference of opinion between the two
parties. as it Is understood. The supposi-
lion is that the Morgan people wish 10
retire the preferred stock of the North
crn Pacific as part Of their general con
sulidatiOn plan ia the Mort Invest The
further supposition is that the Union Pa
cihc interests oppose this, for III" same
reason that they opposed the DuVing of
burlington six months ago II is said
that the question whether the Morgan or
the Hartman people are in the right Is
one that might be carried To the Supreme
Court and buried there for six years if
il We're left to the court. IL will he seen
that arbitration is = very promising So
luton of the difficulty.
Whether. If there is to be arbitration.
this question of Northern Pacific pre-