The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-02-04

Special to The Journal.
New York, Feb 4-One hears very little Of
Russell Sage nowadays and while he still loans
big money to brokers at rates trtfe sitter
in the doings Of the street. Since he ceased
dealing in options there has been practically no
market in privileges in Wall street. During his
career Sage sold options on hundreds OF thou
sands Of shares and made fortune out of puts
and calls. Twenty years ago privileges figured
prominently in the speculation Of the day. In
the Harlem corner old Daniel Drew was com
mitted to the extent Of 81, 200, 900 on calls. He
had joined the bear campaign in the stock by
selling calls thousands Of shares. Commodore
Vanderbilt cornered the stock and succeeded In
advancing the price to 1885,. Drew became DE-
paying Vanderbilt $1,000, 900. There are today
4 few dealers in privileges in Wall street, but
when Spectators desire to purchase options on
London f.G market John W. Gates has been very
successful in his dealings In options. Some years
ago he and several associates purchased calls
on nearly 100000 shares Of Baltimore & Ohio
price more than 20 points. His profits on his
calls amounted to good.sized fortune "f
~~ An Uncertain Outlook.
ket at the present time, altho favorable factors
predominate. The public is again n1bohng at
the market, which Is hopeful sign. Many
persons have heard their bankers say that the
to good advantage. So eager is the demand
for high Understanding bonds that the supply
is Short
Among the reports current was one that the
Chicago g. Northwestern, the Union Pacific and
the New York Central were to be consolidated
in management, If not by holding company n:
Northern Pacific BY the st. Paul dependent
upon the outcome Of the Northern Securities
case(. and third report claimed that some I'M,
! portant developments would soon be announced
in connection with the Omaha.
Important interests declared, when questioned,
that SO far as physical consolidation was con"
cerned there was no foundation for the reports
Cooperation of ownership was. another matter,
and the theory of cooperation could NOT De 80
quickly denied. Thru heavy Rockefeller invest
ments in the Vanderbilt lines there Is strong
bond between the Vanderbilt system and the
entire Hartman systen-sunicient to constitute
very friendly transcontinental system: Eur
thermore If the control Of Northern Pacific can
be secured BY the Hartman interests IN inc
necessary combination will be-by mutual own
ership-the st. Paul and the Northern Pacific
the St. Paul becoming the feeder OF the North
has become the feeder of the Great Northern.
| This takes it for granted that the Northern
Pacific will relinquish It's control Of the Bur
lington, which it now holds Jointly with the
! Great Northern.
There is at present greater speculative activ-
ity in Union Pacific than in any other three
| stocks the list. In numDer OF Respects
Union Pacific is the ideal speculative stock. It
| has an unlimited market and has great free
dom OF movement. Traders buy the stock on the
reaction because Of its intrinsic value, and sell
| it on the bu1ges the belief that it will re
act after each substantial advance. Traders
who would not dare to sell more than 1,ooo
shares of st. Paul short, 60 short OF Union
Pacific to the extent Of from 5000 to 10 o0o
shares. Southern Pacific is also rapidly devel'
oping into speculative favorite. In this re.
spect the Hartman stocks strongly contrast with
| the Gould issues. The Gould interests have
never been able to make the stocks Of the com
panies they control speculative favorites. In
| spite Of the most strenuous efforts, 1t has beer
| impossible to create a large speculative follow.
! ing in either Missouri Pacific or Wabash Trad
ers are continually taking "hyers'' in the Gould
stocks, but there is not that continuous specu.
| lative activity that there is in the Hartman
stocks. .---...
One reason for the practically unlimited mar.
ket that exists for Union Pacific Is the fact that
the banking interests identified with the com.
pany are continually operating in the stock.
! These banking interests control enormous blocks
Of Union Pacific, which are owned outright and
are carried as an investment. On reactions
these interests sometimes accumulate anywhere
from 50, 900 to 100000 shares.
! s., 8, Schro6,