The times. [volume] (Washington [D.C.]) 1897-1901, 1901-01-05

break that looked to many good traders
like the end of the bull market. The
shares bought and sold probably amounted
| to more than 1900 0G0. although the Of
| fetal record will hardly show so many
! The advances in prices were extremely
irregular, but probably averaged at least
per cent in all the active securities
st. Paul went up 10 points, nearly to 1853,
making the banner record for the day
and, of course, scoring a new high price
for it. The other gransers advanced 3
to points. Northern Pacific common
crossed the preferred stock. A long list
of the railway securities might be emu
merated showing large and remarkable
gains. 1t was a railway day overwhelm-
ingly, but it was so big that even the
neglected industrial securities. taking the
! overflow business, would have been con-
sidered active ordinarily.
The market is, of course, variously dag
nosed. Perhaps the simplest and likeliest
explanation of the rema rkable movements
Of Thursday and yesterday is the follow
ing, given by a shrewd Washington broker
! having an important New York connec-
eio'a iut market Is n Dull market
and more so now than at any time before.
The slump of Thursday was simply an in
cident. On that day the leading interests
| decided not TO support stocks and to al
low little reaction TO tighten the mar
ket OF overloaded accounts and create
a short interest before the st. Paul boom
should occur. They were eminently sue
cessful. Big accounts were liqudated far
in excess of a million shares having
changed hands. Big short accounts were
started on Thursday at the close and at
the opening yesterday. Then the impor-
tant people, the leaders. began their work
for higher prices again. They used to
aid them the news OF the immense st.
Paul-Great Northern deal, which is I'M
doubtedly an accomplished fact although
1t has not been announced officially Be
fore long the shorts began to drop by
the wayside and the squirt in St Paul in
the afternoon, with its following, bowled
them over by the million dollars worth
The outlook is for more advances and
much higher prices in the immediate flu
ture The shorts have been frightened,
and the public has become convinced again
that there is no top to the market Some
day there will be a drop, and then an
other following it, but that is another
story. There are more deals to be an
nounced yet
The st. Paul-Great Northern story was,
OF course, the most important news of the
day, as the advance in ST. Paul stock was
the greatest on the list. 1t was said that
the Great Northern has leased the St
Paul and guaranteed a dividend of per
cent on the common stock. No official con-
firmation of the story was forthcoming,
but it was noticeable that there was no
denial either. As has been said in this
column several times recently there has
been no doubt that some such deal was
on foot, but nothing definite as 10 its exact
nature has been vouchsafed heretofore
The news. therefore, had q wonderful eff
feet On the stock The insiders bought it
TO help it along, and the shorts were forced
to cover with immense losses. The price
jumped point at time. and five points
in five minutes on one occasion. The top
price was near 159, or more than S13
share higher than the low of yesterday.
In addition to the story of this St Paul
deal the earnings Of ihe company for the
fourth week of December were excellent
The increase was s1G0, coo
An authority. broker close to Mr.. ]. J.
Hill, now says that there can be no ques-
tioI that the Great Northern. Northern
Pacific. ST. Paul, and -Erie are to form a |
great combination. to do a trans-contf- |
mental business. The present announce
ment is only a small part OF the plan 1t |
may be that there will not be a consolida- !
tioi. Indeed, such move is not likely ]
But nevertheless there will be practically
one management of the entire system, !
much as the New York Central controls !
the Lake Shore and the Michigan Central, !
probably This it need not be said, will be
Zeal of as great Importance as any ever
before announced in Wall Street II is /
possible that it may be published tomor- |
row. but as at present understood some |
Of the details have not yet been arranged. |
Il is not realized by many what a line !
the Erie is or how immensely important it |
might be made in a trans continental sys- /
fem. 1t stretches from New York to Chi |
cago, and il touches on the way at Buf- |
falJ, Cincinnati. and other important cities |
Its wharf facilities on the Hudson are |
magnificent. With its own thousands of 1
acres Of coal lands in both the anthracite |
belt and the soft coal region. and With I
the purchase of the Pennsylvania Coal |
Company to give 1t more business and to (
ensure harmony in the coal situation. the /
Erie is one of the great trunk lines. With |
such a combination as that described il |
assumes a new importance which it is
hardly possible to overestimate.
AS to the effect of these developments
Of the most experienced people. who have
learned their scope, believe that the adj
vances in the stocks are not yet nearly
over. The authority above quoted said last
night that he expected to see ST. Paul sell
at Us during the present month, and the
Erie securities make advances equal TO
those already accomplished. He expressed
the opinion that Northern Pacific common
will go to par shortly. The public will
not buy these securities very largely at |
their present level. because they have al
ready had a great advance But for this
very reason II is rot improbable that they
will boom rapidly When the higher price
is reached and held for a time and the Of
fetal news is given out, there will be lit-
tie difficulty in getting the pubic inter- |
ested. Northern Pacific common went to
above SIS yesterday and above the preferred |
stock. II is one of twn or three common
stcck1 in the entire list higher than the
preferred.
Missouri Pacific was another Of the Sc