The times., 1901-04-01
STOCK MARKET COMMENT
The Morgan Boom Attracting Al
-..s most Universal Attention.

A Far Greater Upward Movement
Than That Engineered by Flower
Two Years AEo-BeIief That Prices
Are Held Up by the Syndicates.
NEW YORK. March 3l.-WaH Street is
attracting more attention than at any
time before since the Flower boom two
ycl1sf aco. The Morgan boom is fer
greater than the Flower market was III
every way-inclusivc Of its spectacular
effects The tragic denouement of the
Flower boom in the death Of it's principal
actor is not likely TO find any counter
paat in the present campaign. however.
and il is therefore to be hoped that such
a tremendous smash of prices as fol-
lowed Mr.. Flowers death viii be lacking
also in the climax of the present market.
But that there must come a break in
prices, and serious one, at some time
in the near future nearly everyone seems
to believe
The questions are being asked in Wall
Street with more and more frequency, as
the steady rise In the general price level
continues, who is buying the stocks for
which such urgent bids are in the mar
kot, and what does the buyer propose to
do with them? If a mob Of speculative
insiders have for sale. as was the case
ir' January and April of 1899, the market
would be easy to understand. Fixing of
prices would then be governed by moth
ing but the duration of the publics craze.
In greater or less degree, this element eX-
fists in the present market But It is not
a controlling factor-certainly not in any
such sense as it was two years ago a
very large part of this outside element is
sl5eptical over the market and sells, there
fore. quite as readily as If buys
During the earlier stages of the move
ment institution buying played an impor-
tant part in decreasing the supply of
stocks But this propelling movement
must necessarily have slackened and dis
appeared as prices rose far above the bar
gain basis II is impossible to conceive
Of banks and trust companies as whole
sale buyers at the present level. EXecu-
tive boards who were to follow such
policy would encounter some instructive
comment at the next meeting Of the COM
psny.
Where shares are bought for control
with the shrewd purpose of selling them
over TO a second corporation and letting
the public eventually raise the settlement
money. the violent rise in prices Is IN
eyitable. To this buying, also, there must
in this seasons market is that even when,
as with the St Paul some weeks ago the
plan Of acquiring control Of property
meets failure, there is no sudden and con-
tinuous break Of prices. Most Of the peo-
pie who bought stocks under such condi-
tiOnS have seemed content TO hold. Yet
granting this fact very little light IS cast
on the question who really holds II. II
is difficult to believe that people who
bought the shares for investment
month ago. are still buying at present
- ll4a FFgz- IN
parently not yet selling and IN many
quarters Of the market some one else is
putting in buying orders.
II as "A prevalent belief that the stock
market is being held by powerful syn
dicateS. pending completion of various
railway combinations still under confer
ence. The motive fer effo1ts Of this kind
efforts which seem 70 be tracedble IN
the money markets plain enough. Such
stocks as the syndicates buy in their
pending operations the public must take
up later-either directly, as in the case
OF the st. PAU, or through a substituted
new security, as with the Erie, Pennsyl-
vania, and Southern Pacific undertakings.
A crash in the market, frightening
away these expected outside buyers. or
convincing them Of cheaper bargains lat
er On would seriously hamper the syndi-
Gates. Probably such an accident would
upset and defer some extensive plans al
ready announced as under way. This
part OF the syndicate attitude lends in
terest To The progress Of events. That
st2ge escapes one Of three pitfalls for
the anipulator-nigh money rates, Sc
Tious disappointment in some attempted
and expected deal, or really bad news
from some unexpected quarter.
The possible influence OF news develop
nleutS has been shown very lately by the
action Of the coal stocks. Nobody seri-
ously looked for q strike at any time;
Yet the chance Of it halted for some time
that quarter Of the market. Now that
the Danger IS announced to be positively
past. there is a corresponding recovery
The truth is, however. that the result of
the coal negotiations is a drawn victory,
and possibly victory for the union.
The mine owners, individually. have as
serted their independence. but capital,
which stands behind the mine owners,
has shown distinct tlmldity. thus en-
couraEing the union for renewed efforts
IT, as the union leaders claim capitalists
who control the operating companies
have actually promised formal Tecogni-
tion Of Mr. Mitcbetls union later on.
then they have sUwn the wind 70 serious
purpose. All goes well while the owners
are able to grant whatever the union de-
mauds. and that has been the case this /
season. Some time. however. the union !
viii certainly ask too much or the owners
be too straitened TO grant anything what
ever.
IT would be the irony Of fate II, for the
purpose Of avoiding obstacles TO the COM I
binations 10y which invested capital
means 10 defy the demands of organized
labor in the future. the hands Of labor
were deliberately strengthened. Yet this
ie apparently what has happened Al
ready the yielding Of capital, for political I
motives in 1900. and for financial motives
construction OF the enormous labor com
bination which is likely. by all precedent
% confront the Industrial company con
Eolidations created since 1897.