The times. [volume] (Washington [D.C.]) 1897-1901, 1901-02-28


NEST important matter from the pelht
Of view of the professional, who WlsheS
to know when to stop selling these STOCKS
short. If IL means that the Insiders ex-
Deci 10 nut the price of the new steel Sc
cuIities up from the present leVel, thert
can be very little doubt that the general
market will be stroug in sympathy AS
has been pointed out heretofore, the gen
eral business situation is excellent ana
hardly of a nature to inspire the wish TO
sell stocks. Yesterday, for instance, lur
nished more OF the wonderful railway
earnings reports that show conclusiNeIy
what the effect of the community OF IN
terest' plan is having, and that MAKE
certain more increases in DIVIDENDS ana
mole new diViuends where there nave
been none before. So throughout the buSi-
ness world the conditions are most en-
couraging. Conservative buying on the
dips is advised by some of the best
OF The brokerage houses For the present
a continuance of the traders market
is not unlikely.
The record of half dozen securities
yesterday taken alone would convince one
that the market is on a great boom.
These stocks advanced sharply nearly
all day, and made important net gains.
Aside from these stocks there was moth
ing doing. in the language of the street.
Prices did not make net movements of
a half point in the ma jority Of instances.
Sugar was the most conspicuous OF
the nuoyant stocks. 1t opened innocent
~ enough. and even showed tendency
10 weakness during the first half hour
of the day Later, however, there vas
noticeabiy heavy buying, and the price
began to move up. AS usual. the public
did not pay much attention to the move
ment until it mad gone long way. and
then it was afraid to buy for fear that
the squirt was trap or simply squeeze
of shorts. The low price touched during
the morning was l3%i, and from that
level the advance was steady to 1879, al
most 10 points. The price reached was
the highest for a long time. Two or
three rumors were heard regarding the
company and the stock. One of these
was the old story that the dividend is
to be increased from z per cent at the
directors meeting next week. rms seems
not improbable, though there have been
denials from semi-official sources that
any increase is contemplated. The other
story WAS a new one. 1t originated IN
Washington. and was to the effect that
there is to be big reduction in the tarin
on Cuban raw sugar, and possibly the
entire adjustment of the duty. The lat
ter rumor failed to make Its appearance
until the stock had made the greater
part of its advance.
st. Paul continued the sharp advance
begun on Tuesday. 1t sold above 49,
and closed near the top price for the day.
and about points above the low of
things Of the day. that while this move
ment was occurring the other grangers
were not advanced in the least. Burling-
ton closed the session X above the close
of the previous day, and Rock Island and
the Atchison securities a small fraction
below The story told in the street re-
garding ST. Paul was that the dividend
on the stock will be increased to 3 per
cent semi-annuaIly on March Il. II was
also said that at meeting OF the direc-
tors today the stockholders will be given
the right 10 subscribe to new stock at
par.
The statement was made in the street
yesterday that some Of the big bull pools
in Union Pacific common and the Atch-
ison securities were liquidating. Ii is
undoubtedly true that there was heavy
selling in Union Pacific and some rather
important selling in Atchison common.
Neither of these stocks responded in the
slightest degree to the strength in ST.
Paul But at the same time, there was
no decline worth mentioning in either
stock as the net result OF the days bust
ness. and 1t is evident that there is
some one willing to buy and ask for no
concession in price. This buyer is evil
IDENTIFY not the public. for the public is
more inclined to bearishness Mt the mo-
ment than 10 optimism. 1t Is not the
covering of shorts either, as there are
few shorts in these stocks, and those do
not care to cover as yet.
The public is apparently missing entire
ly one of the nearest approaches to a GER
tainty in the way of a speculation that
these stocks afford. If Mr.. Morgan has
told the truth regarding the prices at
which the different old stocks will be
taken in there can be very little doubt
that all these old stocks will sell ON par
ity with Mr.. MorsaH's schedule. They
have been approaching this parity rap
idly. hut there are still three or four
points between some of them IL is also
probable that II the old securities are
bought and the new sold during the next
deal.
The Tobacco securities were strong,
American Tobacco especially. on the
story that the War Revenue bill will be
passed, despite all the denials The stock
advanced to 122 IL and closed well up,
though of from the high price. There Is
still somewhat healthy possibility that
the bill will not be passed and the stock
is a dangerous one to speculate in.
During the morning hours the atten-
ton of the street was almost wholly held
by she steel issues. Later they became
dull and gave way to the specialties. This
was not until they had reached the lowest
prices OF the movement in most cases.
There is a very fair chance OF an advance
in these securities Immediately and the
fact that the public has become discour-
aged at the bottom level does not make
this probability any less. The recent
movements of these securities suggest in
most striking manner the usual method
OF manipulation by insiders to depress the
prices of stocks in order that they may
he bought in cheap. When the bottom
was reached IL was learned that the Nor
gan people were buying the new securities
when issued taking the stock offered
by the people that have agreed TO take il
in place Of the old securities.
The traction securities were weak for
the most part, though during the last
hour they recovered somewhat from their
lowest level. The bear argument regard
ing the group was that the net earnings
of the Brooklyn for January show a de-
crease of $4,000. The professionals are
also talking of the numerous damage
suits" said 10 be piling up against the
company.
Washington stock Exchange.
Sales-West End National Bank, 100
1Is1z; Washington Gas, 20g575s, 25(t517t. 10
Q57s.-Seller 60. 1O0q57s.; Mergenthaler
OBSERVATION-DISCLOSURES