The times., 1901-05-24

! that they were to have a fine advance in
| rhe near future on the outlook for re
| organization and for dividends. Both the
/ common stock and the first preferred had
! good advances and the general market
! made its best appearance for the day in
! connection with this movement. Later
] there was a steady advance in Northern
! Pacific stock TO POS, and this chilled the lit
! tie enthusiasm that had developed in con-
/ nCctior with the Erie advance. Prices ev-
/ e!ywhere else in the list broke from
fraction to two or three points and all the
Z early gains were lost News was lack
ms almost entirely. There will be some
shipments Of gold this week, but ii is not
/ thought that they viii be Important One
/ firm sent out $500 600 yesterday. The bank
{ statement is not likely to show anything
I important either favorable or unfaVOra-
bic, as the cash items are not under
stood to have changed greatly. contin-
udnce of the professional market is look
J cd for by some of the most careful peo-
pie. for some days at least II is impos
sible to forCtvU surely what Will be the
next decisive movement. but the chances
/ seem to favor a recession. Ii Is certain
that prices are too high in many securi-
! ties, Conservative people will refrain
/ from buying stocks except on sharp
breaks and they will sell the market
short on the bulgcs.
The two securities that attracted most
attention during the day were, curiously
enough, both in the same group, Erie
common ami Northern Pacific common.
The FIRST stock advanced steadily on buy
ing that many considered important and
significant to 41A, the highest price since
the panic smash Then It tumhlcd to
- .. losing all hS recent gain. Northern
Pacific opened at lil. and advanced and
Do points at a time to POS. and closed at
the top price. The Hiii-Morgan deal Is
very evidently syiNl attracting more attcn-
tlon than any other development in the
street As to Northern Pacific il seems
very certain that the question OF control
is not yet settled The buying of the stock
around 2e Yesterday was not the cover
iHz OF shorts. because the shorts have
been allowed 20 settle at loo. There was
buying of long stock for one OF Shc two
Contending parties. and neither party
would pay such a price unless the con-
test were very close. This docs not indi-
cate that the community Of interests
plan is developing with entire success. 1t
does not suggest that The two interests
are on the most friendly OF terms, or that
CUarrtls in the future are out Of the ques-
uCu. Careful people do not need to be
tod that Northern Pacific common stock
Is not worth 2oa. Naturally. however. ii
is not a stock 10 be sold short
The early advance OF the Erie securities.
and especially Of the common stock, was
most gratifying To the people that have
been talking Of the fine prospects OF the
line. The later decline was somewhat
CiSconCerting. but it was attributed not
to any weakness in the real position of
the Erie railway itself. but to the uncer-
tainty over the Northern Pacific situa-
ton 1t is very clear that as long as the
the market outlook of the Erie securities
Is somewhat of a gamble. On the whole,
the chances seem to favor these securi-
ties N the end whichever party wins
in the Northern Pacific fight il seems
likely that the Erie viii be provided for.
1t will be the Eastern terminus of q big
Morgau-Bin trans-continental line 1t
will have close connection with Euro |
pean markets. The success OF the Nor
gan-Hill faction in this fight would make |
the way clearer, and more direct, how /
ever.
It is rot surprising that many stories |
should be circulated regarding the re |
cent strength of the Erie securities. The I
simple facts that the company's earnings /
have been large, that dividend is eX- /
peCted on the preferred stock, and that /
the Morgan-Hill coterie intend to make /
the road their Eastern terminus are not I
enough bullish stories In a professional /
market where everything possible and /
impossible is paraded TO excite interest /
in the few movements that are occurring.
One faction in the street yesterday had /
the story that the Hartman people are |
trying to get control of the line away /
from the Hill-Morgan people. Another !
story was that the Gould contingent is !
buying the securities heavily. Another /
was that the Erie is securing control of |
the Delaware, Lackawanna and Western. |
None of these rumors appeared TO have !
any foundation.