Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1901-06-09
VIEWS OF HENRY CLEWS.
Special to the Register.

ONA1 - NAiC CSISlt
NEW YORK, June S.-The speedy
recovery in the stock market since the
panic is an exhibit that is unique.
The upward impulse received the sup-
port of leading local operators and
outsiders are now again in the specu-
lative arena. Orders from the interior
centers have been on a large scale,
but not in proportion to the city opera
lions. In some of the more active
stocks, prices are approximating the
highest figures touched before the ante
crisis stage of the boom; and the ex-
pectation has apparently taken hold
OF the market that values are destined
to a still higher level.
W main causes lie at the root of
this extraordinary upward drift OF
p1ices-the settlement of the North
ern Pacific contest, and the indications
that further plans are being Matched
for alliances between competing sys-
tens of railroads. There is yet a wide
range of railroads to which these CO.
operative connections may be advan-
tageously applied; and the favorable
reception extended to Uhe new method
or abating railroad competition by the
investing public is calculated to de-
velop deals of this character and cause
a prolongation of the boom. The
speculative interest is not slow to ap-
preciate the bullish significance of this
factor. 1t is suggestive of an import
ant demand from railroad capitalists
and of the temporary Withholding OF a
pnnSidcrah 1a pDonfffvy 30 .4oaJ.- -
the market by the promoters of the
deals, as well as by those who are
speculatlng on the necessities of that
class OF buyers. This aspect of the
situation is full of speculative interest.
and the interest runs wholly in the di-
rection of still higher prices. For. in
the first place, the contemplated CO.
operative deals are intended to i'm
prove the earnings of the railroads and
appear quite likely to have that effect.
In the next place, the initiation of
those deals will produce a concurrence
OF urgent buying and a scarcity of GER
ain stocks. And, in the next place,
this movement will be backed by can't
talists and bankers of large Jul
Indeed, it is not easy to say what di-
mansions this new method of regulat-
ing railroad management and charges
may not reach. AS an element in spec
ulation, however, there are certain pos
sibilities which deserve to be carefully
considered. 1t lies in the power of the
speculative contingent-which now in
cludes men of greater strength than
ever before-to run up prices to an
excessive pitch against those who are
conducting harmony deals" and the
question arises whether, in that way.
those deals may not be arrested and
their execution postponed until there
has been some important reaction In
prices. Undoubtedly the intrinsically
Improved value of the securities of
roads thus brought into cooperative
relations enables the promoters of the
deals to pay relatively high prices for
the stocks they need to buy: but there
is a limit to what they could afford to
pay and also to what they would real
ly need to pay: and, when that point
was reached, some very exciting situa-
tions might be developed. and crises
such as we have lately witnessed
might easily enough occur as a result
of an over-bought market by the pub
lie. which represents the strong hold
ers selling out to the weak ones.
Whilst. therefore. the present position
OF affairs is suggestive of bull tenden-
cies. yet it is beset with possible COM
plications and surprises that counsel
keeping a sharp outlook and ample
margins. Controlling interest versus
intrinsic values may be stated as the
real u that precipitsted the great
break in. the Wall street market Or