The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-11-23
GOSSIP FROM NEW YORK
Recent DeveIcpmentuin Wall Sreet-Edwin HaweY's
Last Great Coup-Hariman II Control Southern Pacific
BY JOHN mARrHoL.

- Ew YORK. November 22.-The
furry In Wall street has had a
v marked effect on certain quarters
Speculation has become SO general IN this
community that the ups and downs Of
the stock market either elate or depress
scores Of men who are not supposed to be
in the least interested. These frequent the
great hotels and clubs and cut figure as
men about town. The mystery of their
existence is entirely solved when an Ill
wind blows on Wall street. They are as
chan blown before the wind. Detection
spreads over their countenances and their
efforts to make private loans to make
good depleted margins reveals their de-
plorable condition. Most Of these men
are bulls" They understand how ito
buy" but not how ito SELL" 1t seems
easy to buy on a rising market, but it
takes a finer nerve to sell in anticipation
of a decline One group-the Waldorf
Astoria Band of Pikers-were "out of the
market when the first rumbles Of the
earthquake came; they sold, and great
have been their rejoicings. At night they
sit about the great cafe allaying the fever
within them with Copious Wilson whisky
high balls. How many of these amateur
navigators of the high seas of finance be-
lieve their star of destiny points to them
a haven richer than the golden fleece that
lured on the young Ulysses?
There Is a good deal written and a great
deal said about Wall street that is infiu-
enced. The truth is not generally told 1t
may not be uninteresting to the general
public to know facts. They are simple
and they are few. There are three
classes, In the main, in 1.-The Street"
They are: First, pools operating to Sc
cure control, or to make offensive or de-
fensive alliances. These pools have the
interests of the properties in hand, they
work the properties or industrials for
their commercial value either as present
or future dividend payers OF for the I'M
provement of properties during coming
years and the consequent enhancement Of
their values. Second. pools operating to
keep up .zIe- value of heavily watered
properties originated by Industrial or rail-
road combination under the auspices Of
loose laws and the low price Of engraving
certificates OF stock. These manipulators
being largely in control of trust compa-
MES and banking institutions have nego-
tiated large loans upon them and are
compelled to sustain values to protect
loans. Third, the gambler pure and sim
pie who stakes his margin or cash on
high and low. These run from the grand
plunger to the small pilSer, from the man
who operates in ten brokers' offices to
the lamb who plays ten shares in a buck
ct shop. The decline of a billion in the
value of stocks should mean national
peril, but this enormous decrease in valu-
alton means nothing at all on the great
board Of registering gambling operations,
except chalk.
The loss of freights to the coal car
riers, the loss per ton on coal that was
not quarried, are actual losses and will be
felt On dividend day. The burning of
great factory, the destruction Of a bridge,
the failure of crop are genuine losses
and they effect values but the fiuctua-
tions OF stocks forced upwards by manip-
ulation or downward by the pressure of
raiders and the weakness Of operators to
finance them. In no way increase or de-
crease national wealth.
The so-called loss of one billion in val
ues does not affect the general comfnu-
nifty. 1t is purely local Yet, Ii local, it
is far-reaching. in so far as 1t always
produces or brings about a change in
arrangements of great properties.
1t Is well known that when James R.
Keene returned from Europe he sang a
song Of prosperity. There was then no
'encircling gloom" His skies were lit
either by the beacon lights of prosperous
trade conditions or by the aurora borealis
OF deeply rooted optimism. Whatever it
was his horizon was a primrose path to
higher values The following day his tall
ented son-in-law. the rosy-cheeked Tai
bot ]. Taylor with the aid of Uncle Sans
mail service. distributed a bun bulletin
loaded with statistics to prove that
Southern Pacific would charm with the
powers Of the multiplication table every
dollar invested In the new issue Of bonds
and the stock as well. But 1.-The best
laid plans of mice and men gang aft
aglee' and the pamphlet virtually killed
the issue. Edward H Hartman, who re-
sembles Haidee's father, or the father
in-law of Lord Byron's Don Juan. smiled
the smile that BODIED no boquets for
Keene. Talbot Taylor's office was long"
very long of Southern Pacific. The recent