The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-12-03

New York Dec. B.--There has been an UNI
usual number OF failures during the week in the
brokerage business and In small banks around
the country. The brokerage failures have been
particularly heavy. AS the public Is invariably
long of stocks, and as the market has been rising
enormously about the only Inference that can be
drawn Is that the failed houses have not done
a brokerage business. but have, directly or indi-
rectly .'bucketed their business. One of the
recent failures that Of an avowed bucket
shop with private wires all thru New England
and even Canada. Three other failures were OF
local houses having Consolidated Exchange mem
berships and doing a very large current busl-
ness. The customers Of these houses are e, heavily
long of stocks on paper only. Al tne,t
buying has not taken any stocks OUT
of the market. 1t has merely put
the houses the short side of the market, tor-
cling more or less short covering right along.
For the most part, these houses carry large
accounts with Stock Exchange houses, where.
of course, heavy margins are exacted ana All
usual precautions are taken to guard against
times of trouble. These failures now have no
influence the stock market as whole, for
they have little or no result in actual buying or
selling Of stocks. Drastic measures are appar-
emily being taken to lessen the number OF
'bucket shops in the street. but there Is notS-
ing In the world like strong bull market to
make an end of them.
The Waldorf party expects the market to con-
tinue about 1t has been for the past week
MORE. but with greater activity on the whole
Naturally. reactions are expected any day, bu'
it is believed that unless something unusua
happens the average decline will not be more
than 2 per cent, as has been true all thru the
present market
Prick and Schwab.
It 10 said that H. G. Frick has bought so. 00t
shares of Pennsylvania. $4,000 shares of Norfoll
& Western, and equally large blocks o.
Atchson Reading, Erie and Baltimore & Ohio
1t is said that Frck has actually invested be
tween 81, 500. 900 and So 600 in railroad stock
within the last twelve months Practically al
of these holdings were purchased around the low
prices prevailing during the early part of tn
year, and the extensive advance In the marke
during the last FIVE months must have given hin
truly enormous profit on his investments.
Notwithstanding the numerous rumors wh1c
circulated last year regarding the heav
losses suffered by Charles NJ. Schwab. there
excellent authority for stating that his profit
on operations In the United States Steel issue
have been fully large those Of Frick.
"For the last month there has been unmistak
able evidence Of heavy proittaking This is usual
ly sign Of a reaction" said prominent broker
THE expected reaction. however has failed
put in appearance. Such outcome of cor
sentative predictions has the natural tendency g
encouraging the belief that some miracle ha
been wrought and that reaction will not occu
until some time in the indefinite future Yet
do not think that the old standards of measu
ing and gagng a speculative stock market hav
entirely lost value tho they seem lackin
in accuracy at the present moment. The littl
warnings The market is receiving in the harder