Omaha daily bee., 1902-05-06
SPECULATION IS IRREGULAR
Disposition to Take Profits Arrests Upward
Movement and flinders Buying.
HIGH MONEY RATES DISTURB MARKET
General Situation Gives Satisfaction,
However, Owing Largely to Inn
proved Conditions of Crops
During the Week.

NEW YORK, May 5.-(Special)-Henry
Clews, head of the banking house of Henry
Clews & Co., reviewing conditions in Wall
street, says:
been somewhat irregular, the upward move
ment being arrested by the disposition to
take profits, and by the general high level
Ing. Other disturbances nave been high
money rates incidental TO May disburse-
ments, the sensational movements in the
industrials, the Reading labor difficulties
and the evidences here and there of at
tempts to secure control of different prop
critics for extension of the community-ot-
interest idea. The extent to which the lat:
ter schemes, or, in other words, railroad
concentration movements, are anecuns
the market is not yet thoroughly apprecl-
ated, although they are more largely re-
sponsible for the high prices of good rail-
road shares than any other single influence,
Community of interest has put a stop to
railroad wars and secured better and more
stable rates for transportation. Traffic be-
Ing heavy because of the countrys growth
and activity, the railroads are enjoying a
period of prosperity far beyond what was
OF in%terrSption from new railroad building
while this community OF interests lasts,
1t Is the. ~permanence of this idea and the
division of the railroads of the country into
a few great systems which the big railroad
magnatee are endeavortng to establish.
Forces which they cannot control are driv-
ing them into these alliances; for one com
bination compels another, and the demands
for efficiency. economy and simplicity OF
lClHO U lItSlSllDlts tll INV wan
or no, railroad managers, or the systems
they control. are obliged to buy into this
road and that road In order to prevent
roads are being rapidly segregated into one
larger system or another. 1t is quite, un-
necessary to mention examples, they have
been innumerable during the last few years.
But what is the effect upon the stock mar
ket? Simply this: That the floating supply
of the best railroad stocks, once active on
the list, has been very much reduced by
corporation buying, and such stocks are
tenaciously held because those possessing
| control dare not risk its loss by selling.
Such a situation offers. the bold Spectator
with a few millions behind him a rare op-
through a~rtifces well understood in Wall
street, high priced railroad stocks are
course, such operations are OF no benefit to
the stock market; they do not encourage
buying, and everyone knows that the real
buyers for control do not rush in at the
top, but generally carry their points az
times unseen and unknown. Control q
| was obtained long before the price began to
soar. These facts are cited only as one
much above their intrinsic values. Such
securities are best avoided by the specu-
iator, not alone because they are too eT.
| pensive, but also because they are liable
to sudden and very severe breaks when the
artificial conditions which fostered such
! manipulation cease to exist.
The general situation continues s~atisfac-
tory. Crop conditions were improved this
week by favorable rains over a large Sec
ton of the country. Wheat is not in en-
tirely satisfactory condition. but there is
plenty OF time for Improvement. A large
corn acreage is promised. as a result OF
present high prices, and cotton planting
Is now progressing well, although the sea
son Is nearly two weeks behind the aver
age. General trade continues active. Mills
are producing large quantities Of goods and
merchants appear to have no difficulty In
distributing them. The chief complaints
are OF the increasing cost of production
and distribution, with a consequent diminu'
ton OF profits. This IL likely to prove a
constantly growing feature. There is nc
abatement in the demand for iron and ia
products, showing that the Industrial &C
tivlties OF the nation are still unwearied
The consumption of coal, iron, cope and
other raw materials continues on a phe'
nomenal scale. Money will soon be easy
/ again and is likely to so continue for the
next three months at least-an important
factor in the stock market. There Is more
or less expectation OF gold shipments, but
no apprehension need be felt on this score
as a few millions can be easily spared or
this side, and the decline of the Boer wal