The Washington times., 1901-11-10

| ment. This might be judged from the fact
| that these people own an immense amount
| of stocks which they are not willing to
J sell at recent prices. But there are direct
| evidences Of heavy buying for the Nor
| gan. Hartman. Vanderbilt, CasSatt, and
| Gould parties to support this theory. The
| conclusion drawn ny the hopeful people
| is that these large interests. wishing to
make bull market have considered the
present an excellent opportunity on ac-
| count of the coming settlement of the
Northwestern Railway situation and the
| probability of other important develop
| ments Of somewhat similar nature.
Such deal as this in the Northwest is
Of an Importance so vast that ii Is diff
cult to overestimate it. 1t has already
caused undreamed-Of advances in pric IS,
and yet when the situation IS carefully
analyzed, with all the available material,
ii cannot be considered that these ad-
vances have been too great-supposing
only that an actual and lasting harmony
is to be established. and that cooperation
in cutting expenses and increasing earn
ingS is TO be reality instead of a prom
Use.
There was a general belief prevalent a
month ago that the large interests would
wait for the coming of easy money con-
diti0ns before they would begin their bull
operations. II was said. and very truth
fully, that a bull market requires a cam
paiEH very much as battle does, with
preparations carefully considered and eX-
ecuted. and il was suggested that one Of
the chief requisites OF 4 campaign in the
stock market is money, and plenty of it,
both for the insiders and for the public
The best possible answer to this IS that
the advance has come despite the fears Of
financial troubles. Perhaps the insiders
have not wished to wait until everything
was favorable, and palpably so, to the
public as well as to themselves. Perhaps
the insiders have wished TO buy stocks at
the low level and advance prices well be-
fore the public should care TO get into the
market The public is only beginning to
buy stocks now, and prices have advanced
many points. II the boom is continued
the public will begin to get excited this
week, and il will be wild with enthusiasm
the week after. By that time the insiders
may begin to feed out stocks. Money con-
oHlons are not yet satisfactory. They
may be two weeks from now. That will
| he soon enough for the public. The in
siders. as long as there is not too much
company. can get along very well with the
present supply of funds.
It should be pointed out that business
conditions. aside from the financial situa-
tion, continue excellent. Railway earn
ings do not decrease, as IL was predicted
they would but instead continue to in
crease steadily. The steel and iron busi-
ness is in an eminently sound condition,
with not the slightest sign of overpro-
duction, or coming depression. Indeed, all
the evidence points to an inability on the
part of the producers to keep up with con-
sumption. Prices are advancing and the
advance IS not a speculative one. 1t Is
said that the earnings of the Steel Trust
for the present year will be far in ex-
cess Of predictions made a few months
ago. One authority expresses the opinion
that the. company viii earn $3.50 go net,
but this estimate may be tens of millions
too rosy. and still fulfill the best OF earlier
predictions. The coal business. like the
railway business and the steel business, ia
in excellent shape. The general trade re-
ports are most optimistic. The price fig
ures Of Dun's on general commodities are
higher than they have been at any time
before in the past decade.
Henry Clews says of conditions: THE
stock market has shown much strength
during the past week, the advance being
well distributed and well sustained. The
chief stinulaut was powerful nsnipula-
ton. based upon progress in the Northern
Pacific deal. Such complicated and wide
reaching arrangements as this particular
one cannot be carried to completion with
out friction and delay: but IL all reports
are true very substa utial progress has
been made and the negotiations may be
announced as completed at any time. The
interests involved in this transaction are
so vast and interviewer that ever since
the hitch which developed last spring
there has been firm belief in the public
mind that the rival interests, whatever
their ambitions sand disposition, could not
afford to permit an open rupture which
would have proved ruinous to both sides
and created general demoralizauon.
an eventual settlement Of differences af-
ter both sides had consumed enough time
for skirmishing and reflection. OF course
the Intervening period of doubt was un-
favorable to a bull market, and now that
this element of disturbance is likely TO
disappear the speculative situation Will De
correspondingly cleared and improved.
Stocks are still highly concentrated
in strong hands. and holders are not Will
ing sellers al present level No doubt the
strongest incentive to operations for high
er prices is the prevalence OF general
prosperity From nearly all sections OF
the country come reports OF continued
good business conditions. Even In the
drought stricken districts business is bet
ter than expected owing to other onSets,
and no complaints are Forthcoming. BANK
clearings are phenomenally heavy, having
for several weeks exceeded last year
heavy totals by 10 to 20 per cent ana over
Railroads are often oyerburdened WIN
traffic and earnings continue to snow
gains of 10 and Is per cent over the hand-
some gains of last year. On almost every
side there are the most positive evidences
OF great industrial activity, and as yet
there are no important signs of cessation.
Good Judges expect the boom IN Iron to
continue for some months to come, and
any recession from present h'gh ana
a new lot of orders that would keep both
new and old capacity fully empioyei.
II. l.. Benuet, Of the New YORK brok-
eragc firm of Jacob Berry & Co, is quoted
..Tbere are two positive factors the in
duence OF which is being felt in the Sc
curity market this week, and which are
morally sure TO determine the character
of the dealings as long as they exist:
First, the often-scoffed-a prospect OF
further progress with the communty-of
Interest idea among several leading rail-
road systems the Northern Pacific set
Element being one example OF TINS, ana,
secondly. the remarkable gains In rail-
road earnings, which, instead OF decreas-
ing, are now showing Il heavier percent
age of increase over year ago than for
many weeks. There are several groups
of railroad properties in which inter
change of securities and readJustment of
capitalization are In more or less immi-
nent prospect and the working out of
these plans can hardly do otherwise than
stimulate advances in security prices. The
railroad stocks Of this country have not
ended their advance, and are not likely
TO as long as urgent steps are being
taken to improve their status
Railway earnings. which make divi-
dends. must always be considered the
chief and basic factor in the stock mar
ket. The September and October state
Tnents Of earnings have been Of the same
nature as heretofore. showing a continu-
ance OF the marvellous increases in both
gross and net retuTns.
Railroad earnings in September. as re-
NIT SAMES AgmaaPosus-
INE TEETH GeyyWghn
DER 2s& e sosdS' Is5 SSIes1f gs1 Ms % 5eS,Yy,Yl e,yYl