The Washington times., 1902-01-06
Spe culators Bearish in Their
Views and the Outside
World Optimistic-Com-
ing Week May Give
Victory to One
or the Other.

market. because it will be in reality the
first week that will test the new condi
tions that are supposed TO begin with the
new year During the past week there has
been little, if any, effect from the January
disbursements of interest and dividends
and yesterday bank statement actually
showed decrease in surplus reserves in
stead of the expected and usual large in
crease for the first statement of the year.
The coming week will see easy money, and
next Saturday s bank showing is almost
certain TO be a good one. 1t is probable
too. that the investment buying expected
Will develop largely.
The street is bearish Investors and
the large interests generally are buliish
Inc conditions seem to favor a victory
lo- the public FOR this week at least if
not for prolonged upward movement.
New Northern Securities Plan.
1t seems probable that the Northern Sc
curities Company plan will be upheld by
the courts. This is matter of the great
est Importance to the financial world.
The next important development of the
past week was the retirement of the SIS
100000 preferred stock of the Northern
Pacific Railway Company. The only fric-
tion that developed in this enormous
transaction was that caused by irrespon-
sihle and speculative efforts to prevent
the consummation of a perfectly legiti-
mate operation. The bankers and capi-
talists who conducted the operation are
certainly entitled to great credit for the
skillful manner in which they handled it
Now that the Northern Securities Com
pany has come into actual ownership OF
ha nrf anif ,,,I h.
ern Railway companies no harm can
come; on the contrary, much good may
result from thorough discussion of the
merits and alleged demerits of the plan
for simplifying the railway situation in
the Northwest, both before the Supreme
Court OF the United States and before the
Interstate Commerce Commission.
Other Combinations May Follow
If the plan is upheld, as it has been so
far. the chances are that other compre-
hensive arrangements of a similar char
acter viii be carried out by those who
control various transportation lines that
should naturally be managed and operated
as unit
One OF the most interesting parts of the
industrial situation is the steel and iron
market. It's general interest hes in the
fact that. among staple products not di-
most the single market where prices are
normally hardening instead OF waverng
ana where consumption is racing closely
with production.
Outlook for the Steel Trust.
To the investment community. the iron
position has further immediate inter
est The fortunes of company whose
shares are row more widely distributed
fNNuWa gF
a measure bound un with this situation
Nobody doubts today that the forthcoming
statement of the Steel Corporation for
the quarter VIII make show of earnings
superior even to that of last September
Therefore the main question OF curiosity
concerns the future.
Part OF the iron markets prosperous I
condition may be ascribed TO the wisdom /
of The Steel Corporations management I
who have refused to force the scale of |
prices. Part is directly due TO the strike /
OF last summer, and the consequent held
ing up OF production, which is still max
ing up for tine lost in July and August
Part, finally, can be explained by the fact
that this very prosperity in iron has
caused immense demand for structural
material from newly projected iron and
steel mills, which will presently add their
resources to the general capacity for out
turn.
Must Have Export Trade.
This is perfectly healthy situation,
but it is one which may mislead hasty
reasoners as to prices. The truth un-
question2Dly is that when these new mills
are all at work the export trade will
again become as indispensable TO the
plans of American iron producers as it
has proved to be in the copper trade.
To get that export trade, lower prices
Will probably be inevitable.
But the conclusion drawn on this ques-
tion by the Iron Age that when this
struggle comes, no iron industry in the
world viii be equipped for the fray like
ours, is entirely sensible. The greatest
possible misfortune TO the trade, and TO
the great combination which controls so
much of it, would be frenzied boom"
in iron.
Following are the changes Of ! point or
more that took place in the active list !
during the past week, comparing Sat
urday's closing prices with these of Sat
u-day, December zS