The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-10-18
But Industrial Stocks of All Descrip-
tions Are still Suffering Because
of Recent Liquidation.
NATIONAL CORPORATION LAW
RECENT EVENTS CALL ATTENTION
TO NEED FOR SUCH A STATUTE.
A "Tenderloin" Tragedy Said to Have
Indirectly Caused the Collapse of
the Shipbuilding Trust
pecial to the indianapolis Journal.

NEW YORK, Oct. 1.-THE railroads are
pulling away from the industrials in the
stock market. With few exceptions the
dividend payers and junior issues on the
active railroad list have experienced no de-
cline Of late, while in some instances
substantial improvement has been made
On the other hand there is hardly an indus
trial that has not suffered severe deprecia-
ton. The iron stocks have led on the down.
ward plunge and the other industrials have
receded in sympathy. There are two or
three railroad stocks that are conspicuously
on stills and will have to undergo considera-
bic decline before they come in line with
the rest of the market. These stocks are
being subjected to severe pressure and dis
play yielding tendency, although strong
cliques are supposedly under them. 1t
would seem almost as if the wind and
water had been entirely squeezed out of
the 1nduStrials and that there was little
room for further fall in prices. In the case
OF United States Steel the common stock
would be worth current prices If dividends
were entirely suspended without hope of
resumption for five years. The good as well
as the bad has suffered in the general
slump, although not so seriously, perhaps.
Even such enormous earners as Peoples
Gas, American Sugar Refneries, United
states Leather, Shelters and Pressed Steel
an end TO all things, and there must be an
end TO the existing depression in indus
trial securities. The crowd is as bearish
on these stocks, however as 1t was wildly
bullish on the whole list year ago The
play then was to copper" the crowd and
the more experienced traders are doing
the same thing now, namely, going against
the mob.
The astounding shrinkage in the securities
of industrial corporations and the revela-
lions touching upon the methods of
their organization and fiotation call
attention anew to the need of national
corporation law. This is something which
has been mildly agitated before Congress
for a number of years, but in the absence
of vigorous effort no special Roadway was
ever made for favorable action. The recent
unhappy experiences of shareholders in
many Of the large corporations organized
under State laws is more than likely to re-
suit in a lively campaign in Washington
during the next two years. 1t has been esti-
mated that there are at least 100000 share
holders in the several industrials whose
stocks are traded I'm on the exchanges of
New York, Pittsburg. Philadelphia. Bos-
ton and Chicago. These people have suf-
fered loss or at least u, coo 100000, of which
something like $500 0O0, 900 is represented by
the depreciation in the stocks and bonds of
the United States Steel Corporation. Dur
Ing the lie or the industrial COMMISSION,
established by act of Congress, the ques-
ton OF national corporation law was
frequently brought up, and the views of
great many men of prominence in the bust
ness world were asked and obtained. A
large majority of those whose opinions
were sought Endorsed the idea, some of
them IN strong terms. This expression will
probably be summarized and form basis
upon which to ground a request for national
legislation at the coming session of Con-
gTesS.
The miscarriage of the Shipbuilding Trust
and the chain of sensations that followed,
finally convulsing Wall street and disturb
ing the entire country, are directly and
peculiarly traceable to "Tenderloin" trag
edy, having at the time not the remotest
connection with Wall street or it's affairs
One night a woman of the town, one of
the lowest Of her kind. was murdered by
her crazy lover. In the course of a day
or two the murderer was caught. He
proved to be a degenerate grandson of
Brigham Young the famous Mormon
apostle In looking about for friends or
relatives the authorities discovered that
the father of the young man was John w
Young. who was in Paris on financial
mission for wall-street interests. This cir
cumstance was mentioned in the Associated
Press dispatches, which came TO the atten-
ton of the parties with whom Young was
| dealing in the French capital. The 1dentlh-
cation disturbed the French fnanierS, who
were about to close with Young and take
| So OO,OG0 of the bonds or the Shlppulldlng
Trust They held up negotiations and the
result of INQUIRY set on foot by them led to
| their withdrawal from the deal and repud-
| iation of their tentative agreements. This
| action threw back upon the American pro-
motors that amount of securities, which
/ they had supposed were securely placed.
| The default led to all kinds of compiled tons
on this side of the water, ultimately bring
| ing the Trust Company OF the Republic
| to the verge of ruin and saddling a mass
of obligations upon the friends OF the en-
| ternrise in New York The publicity re-
the bankruptcy of lie Roy Dresser, the
| chief promoter of the scheme. the destruc-
| tion Of q dozen regulations and score of
| fortunes, and the blasting of oyerweenins
| nolitical and social ambitions. The bullet
/ that killed a street-walker in a cheap
| s"Tenderloin room reached the heart OF
/ wall street. The coroners record shows the
| taking of only one outcasts life Wall
| sfreet annals tell convincingly that tbs
poor maniac who eomni.tea th ,h1 IN in9 haTfl
| filled a cemetery. Instead of single muir
/ der. II was q massacre, the 1ull story Oh
| which has not yet been revealed: Inc M mise ser
| of the bars of a lunatc asylum MS ueac
mistress lies in Potters field; and hnancia
corpses are thickiy strewn throushou' 'h'
money community.
| .-renderloin'' character by her maniac lover
| Il would have taken Wild leap OF the
| iYnaeina ton to have conceived a chain o.
| circumstances which would develop into tn'
greatest sensation Wall street has seen IL
| SSesrs These two people were utterly IN
| significant il the affairs or the world InsN
| were LITTLE more than human insects IN tn'
| ereat proposition. Yet, it is wildly clear Il
ThCse conversans with the Facts that put 10
| The ort-of-t he-way tragedy there woul'
| rae been no slip in the organization or tn
| limited States Shipbuilding Company or II
the sale of its stock to the public. In
Goods would have been landed and the pro
| Snoters would have collected their mllIlon
Of so-called profits. The sequel would nav
been a different story.
| In conversation with an ofhciai OF IN
| Sn,elting Trust the other day the exper
on;nion was advanced that the production
| Of gold In the United States had for tn
time being reached its maximum Their
| has not been any great variation In Tn
aggregate for the past three or four years
and although new mines are being con
tinualIy uncovered and developed. the nes
finds do not very much more than onse
,be exhaustion OF old fields. The amount o
| cold mined In Mexico is on the increase
| snd the same is true of the important dis