The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-03-11

aminer Kerst or his predecessor, S. T.
Johnson. Any investigation that only
hears one side of the story is farce.
The Stock Advance.
From Wall street, where prices of
securities have been so long on the adj
vance that many had begun to think
there was no end to it, has come at last
a note Of caution, and this week, for, the
first time in almost six months, there is
the color of conservatism in the fnan-
cial reports. For the past three weeks
the feature Of the stock market has
been the persistent advances with moth
ing new to account for them. Instead
of a development followed by response
in the market, or an advance and the
later discovery of it's basis in something
done, there have been advances, based,
SO far as the shrewdest investigation
could discover, upon nothing more than
the old bull arguments. These are a
little threadbare now. They embrace
a thousand minor points, and range from
easy money to the honesty and integrity
of: the president, from big prospective
railroad deals to the failure of most Of
the proposed antirailroad legislation to
pan OUT. and from probability of early
peace in the far east to the promise
Of a good American winter wheat crop.
That they have been, discounted it is
hardly necessary to say, but until now
the full measure of anticipation of effect
was thought not yet to have been seen.
The cry of still higher prices was very
loud. This week it grew fainter and
in some quarters it ceased entirely. A
few have even talked of recessions, in
dicating that despite all the bullishness
and the knowledge that concerted action
and manipulation may put them still
higher, stocks, on legitimate basis, are
today entirely too high. :~~.
A popularity about this market is
that the big men are not selling out.
Partly this is due to knowledge that
the market would weaken If any heavy
selling were traced to them, but more
properly the lack of offerings of big
holdings is due to fear. This is time
of warfare in high finance. Vast for
tunes are thrown into the balance from
time to time. The big men scheme and
combine, but individual ambition re-
mains, and groups of capitalists, tho
operating in harmony with other
groups, are found trying for the adj
| vantages of control. So complex is the
railroad situation Of the day, with ref
erence to ownership, that holders OF
great blocks of stocks, who, in all prob
ability, would like to sell them to the
public and buy them again later when
decline has carried prices away down,
hesitate to let go lest in some way they
may play into the hands, of their op:
ponents in the street. It is a situation
not exactly paralleled in past history.
To pick a stock at random take
| Union Pacific. Assume at once that all
the arguments favoring an advance
have been sound and give full measure
to the advantages of combination, or
community Of interest, or whether one
| cares to call it, and lump all the bull
| talk heard when this stock was down
to IS. Consider then that this stock
closed yesterday at 1854, Sand judge
whether this is not enough. No less
| dividend was earned and prospects
were no less bright at that time than
now. It is supposable that the men
who hold great blocks of this stock or
dinarily could and would let it 60 to
the public to the extent that the public
might clamor for it, and would then lay
back and wait for it to sink again and
| repurchase it. But it is dangerous to
try much of that now, for the capital
istic group that tries it may wake up to
find fight on for control of the prop
erty. g.. .- ..... --.
Probably we shall some day hear of
an arrangement between the big men
that will enable them to realize. Mean.
while it cannot be doubted that many
stocks are high beyond all reason. Yet
while the present conditions remain it
does not follow that they will decline
Indeed, 200 is the prediction for North.
ern Securities and other stocks are said
to be in for still further advances OF
20 and rs points. Some day, of course
they will come down again.
Whenever stocks get SO high that a
4 per cent stock sells SO far above PAL
that the holder realizes 8 per cent OF
less and other stocks in proportion, Their
the old talk is revived that our country
is going upon a permanent 8 per cent
basis. This is the surest indication OF
the beginning Of the end. Ours is q
new country, and not a 3 per cent coun
try like England, and when after a lone
advance and top-heavy prices. the old