Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1903-08-01
THE SLUMP IN STOCKS
Walls Street Situation Summa.
rfzed by Horace White.
FALL WAS INEVITABLE, He SAYS

Well Known Writer ON Financial
Topics Believes Bull Movemen,
Mystiied All In the Stock Ex.
change Until Men Responsible
Were Revealed - Then Every One
Tried to Buy.
Horace White, well known New
York writer on financial topics, who
has summer cottage at York Harbor
Me-, was asked the other evening as tc
his opinion of the cause of the recent
slump in stocks, says the New York
| Herald.
Looking back at the bull move.
| ment, he said, (which carried prices
OF securities to such a height that a
corresponding fall became inevitable at
some time, it will be remembered that
Wall street was for long time COM
pletely mystifed by it. Nobody knew
who was under the market till months
atterWard. 1t was eventually discov-
cred that the lifting power was sup
piled chiefly by ]. p. Morgan and ]. j.
Hill on the one side and by e. III. Har-
rlman and Kuhn, Loeb & Co. on the
other.
THE movement began with an at
tempt on the part of the former to &C.
quire the Chicago, Milwaukee and St.
Paul railroad as an annex to the North
ern Pacific and Great Northern roads
by purchases in the open market That
foi ~ ol@
ject, supplied great lifting power to
the market. The operators and the
public generally, being ignorant Of the
purposes which lay behind it and not
knowing who furnished the steam for
it, concluded that it was sign of gen.
good time to buy stocks. So they
turned and bought also. 1t was i'm
possible to boom st. Paul in such
fashion without booming other proper
ties more or less.
'"This was only the beginning of the
boom, however. When Morgan and
Hill found that the control of st. Paul
could not be bought in the open mar
ket they turned their attention to
Burlington and adopted better tactics.
They went to the large holders Of the
stock, mostly Boston men, and nego-
tiated with them. At the same time
the buying Of Burlington shares was
continued on the Stock Exchange.
''The upward movement Of the latter
excited the suspicion of the Union Pa
cific people Schif and
others. They soon found out what
was in the wind and, as it was too late
to prevent Morgan and Hill from get
ting control of Burlington, they set
out to acquire Northern Pacific The
SPECTATORS and the public generally
were as ignorant Of the causes Of the
upward movement in Burlington and
Northern Pacific as they had been of
that of st. Paul. They ascribed these
also to the general waste of prosperity
and were confirmed in their opinion
that it was good time to buy stocks.
"The word was passed around that
you couldn't make a mistake in buy
ing anything. This was really believed
by many of the old and most cautious
operators on the exchange. Advantage !,
was taken of the speculation craze to
launch swindling projects on the credu-
lous investing people or lift prices to
an abnormal height in swindles pre-
viously launched.
when the Northern Pacific corner
broke the stocks that had been bought !
at the prevailing prices were mostly |
In strong hands, They did not fall to
their former level, but it was pretty |
certain that they would do so some
time. That time seems to have come.
'"The fact that certain railroads Of the |
first rank, such as the Pennsylvania, /
he New York Central and the Burling- |
on. have negotiated or are seeking vast
Oans seems to me to be the immediate
cause of the recent tumble in prices.
Whatever money they take out of the
boom market they take from other bor-
overs, and chiefly from those who are
carrying stocks on margins. The banks
must take care of their mercantile GUS
omers first, and, when it becomes
necessary to choose between different
classes Of borrowers they will first call
N the spectators to pay up.
'"The railroad demands mentioned are
leemed essential as being part of the
ountry's growth, already too long neg
ected. The general business Of the
ountry, too, must be kept going. Those
Who are carrying more stocks than
hey can pay for must accordingly suf-
er If there is really shortage of loan
BILE funds
"These are differences which l draw
rom reading the course of events in
Vail street, but do not pretend to
ave any special knowledge"
AS to the business outlook of the
ountry generally Mr. White said:
"The general business Of the country
, in my Judgment sound. l think 1t
7ill not be affected by the decline in
tocks."
Leo Sleeps.
lest came, as to an infant tired with
play,
Most calm and sweet. Sublimer the re-
pose
4 Leo than Of other kings whose sway