The Washington times., 1901-10-13

interests are working in both st. Paul
and Union Pacific and that a combination
| between the two lines in some form or
other is likely. Conservative people take
| the view that while it is impossible to
| at present, they have much the appear
| ance OF being based on negotiations
| among the big people, and that these ne
gotlauons are more than likely to result
\ in final harmonious adjustment of the
railway situation in the entire Northwest.
| So much at least is safe conclusion
Henry Clews takes a more hopeful view
| of the market situation than he has at
any time recently. He has this to say re-
| garding the stories of the deals in the
| Northwest:
| its pessimistic mood by renewed reports
| of progress in the vast railroad comblna-
| tions which were calculated to have a
stimulating influence upon values and
speculation. These plans were interrupt
| ed last spring and summer by a series of
familiar drawbacks, as well as by the fact
| that prices Were then too high to permit
or any further successful upward manipu-
iaton. The large interests then in con-
troll accepted the situation, they stood
together in preventing any rapid decline.
and finally availed themselves as far as
practicable of the advantages of lower
prices. Stocks are now more highly con-
| centrated than in any previous period of
| our financial history; the big men having
accumulated them for the sole purpose
| of carrying out their vast schemes of
combination which seem to be an ire
sistibie outcome Of modern tendencies.
lit is folly to underrate the Importance
OF such transactions. They will unques-
tionably add to the stability and profit
abieness of railroad investments. and they
may be used to infuSe fresh life into the
| speculative situation, but outsiders must
accept the various reports with caution,
ana expectations of a prolonged bull
| movement based on these developments
| do not seem justifiable when such large
| amounts of stocks are held awaiting buy
ers as is now the case.-fhether it is
| the plan or not of the market leaders to
| lnaugurate a new upward movement re-
mains to be seen. Recent market opera
| tions suggested that some parties were
endeavoring to accumulate stocks as
| cheapiy as possible, and If this means the
| entry of a new bull element into che mar
| ket We may expect increased activity.
Just now the situation is considerably
mixed mixed Prices have declined Is to 30
| points since last May, and not a few are
| OF opinion that the effects of the corn
| crop loss and fears or tight money have
been about discounted. that railroad earn
ings are likely to continue at high level.
and that there is no good reason for al
lowing pessimisn to eat away prices any
longer. on the other hand. there are a
good many who cling to the conservative
position, pointing to the poor earnings of
many of tho iEdustrials and the possibil-
ity Of a trade reaction, to say nothing of
their unwillingness to assist in carrying
burden of high-priced stocks which the
bearers are anxious TO distribute Which
of these two sets of opinions would pre-
vail, If the market were left to itself, 1t
is difficult to say. At the moment 1t is
of more consequence to watch the opera
ttons of the market leaders. If these are
on the long siderwe may look for a more
active market In which we should advise
proft-taking on all sharp advances"
The reports Of the iron trade are espe-
cially encouraging, IN view of the belief
entertained by many few months @ge
ClN -ea.r
the end Of the year. The iron trade is
regarded as the index to general bust
ness conditions, and rightly, and for this
reason it is probably safe to infer that
capitalized Industrial concerns in different
lines do not signify any abatement of gen.
eral prosperity. In every branch of the
iron and steel business activity Is most
pronounced, and prices at the top level
Mills are striving to overtake their orders
and reach "A point when definite daees
for delivery may be guaranteed. Purchas-
ers are urgent in many cases. while the
permanence of activity is assured by con
tracts extending far into next year. 1t
would be difficult to select the line in
which the rush is greatest. Railway sup
plies Of all kinds are sought, structural
material is wanted in great quantities,
tubular goods are not available promptly
and tin plates command a premium Ma
chinery lines, heavy hardware and all
kindred lines are strong and active. Quo
tations are steady, with occasional ad-
NdlitGS, Dut lHtFe Is no tFiueIt- OF uil-
reasonable initiation. Bar producers ap-
pear to have reached an agreement. Sta
tistics of pig iron production on October
l, by the Iron age; Indicate weekly
producing capacity of furnaces amounting
to 3O7, $50 tons. against 29e ,S6i on September
J. Z,3 169 a year ago, and $3.50 on June
l. l90l-the high record. Despite the
enormous output, furnace. stocks are 36I,-
593 tons, having decreasei almost stead
lily since October /, 1900. shen they were
6i0.5Sl tons. Not only is the furnace sup
ply light, but consumers are not believed
to have very large stocks.
The smashing of prices in Industrial Sc
curities has ceased for the moment at
least 1t seems probable that the big de
clines in this group have been sufficient
to discount TIE poor conditions, where
there are such, and that the tendency of
these securities will be upward for the
present II the railway list is to be strong
But the industrials have gravitated to a
lower relative level during the past sum
mer than the railway securities, and 1t is
probable that they will continue lower.
The outlook for these companies and
their securities IS not so good as that OF
the railways for many reasons. One of
these is that the public has lost confidence
in the securities to a large extent, be-
cause Of the blind pool character Of the
mana cement of the concerns. The United
States Steel Trust stocks are favorites
with many, but they are an exception to
the general rule.
One of the securities that is most talked
Of recently likely to make a good show