The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-07-19
ROCKEFELLER MEN IN CONTROL
PRACTICAL SUSPENSION OF BUYING
STOCKS FOR INVESTMENT.
Industrial Situation Is Considered
Sound, but Bankers Are Not Opti-
mistic Over Money Market.

IL is an exceedingly difficult matter TO
make any prediction as to the future course
of the market. During the dullness of
the past few weeks a better feeling de-
veloped and the hope of better market
inspired many to begin speculative opera
lions on a small scale. There was nothing
In the situation to warrant the fear of
further bad breaks, and even the warnings
concerning the money outlook were
garded as being due rather to extreme con-
servatism than to any actual bad features
In the situation. The sudden break in the
market, which began toward the close of
last week and has since attained such ire
mendous proportions, has completely
neutraIized the fncipient bullishness which
began to manifest itself There is a grow
ing feeling in the street that the market is
being made a football of to further the
ends OF powerful group of capitalists. To
put it more plainly. the sudden break in
stocks is directly attributed to Standard
Oil tactics, and the way in which New
York Central has Jared has accumulated
this belief. 1t is a fact very well known,
that in the course of a short time the
Rockefeller interest in New York Central
will be practically a dominant one, and
friends Of the Vanderbilt interests as late
as last week said that William X. Wander
bilt was heartily sick and tired OF the
whole proposition and perfectly willing to
shift the responsibility to other shoulders.
1t is AN old saying in the street and it is
by no means a fiction, that the Rockefeller
interests, when they want anything. will
try to get it at the expense of values
rather than by any other kind Of market
tactics. AS a consequence. assuming that
the premises are correct, the whole mar
ket has suffered in order to further the
plans Of the Rockefeller group. 1t fs not
going too far to Say that the street, or at
least the speculative section of 1T, is at
the mercy Of these particular operators.
A decidedly discouraging factor in the
present situation Is the practical suspension
Of miscellaneous investment buying. Usual
ly the July disbursements for dividends and
interest are followed by marked activity
in this quarter. During this month fully
sl50000.0O0 will be paid out by the banks
and financial institutions as returns on
stock and bond holdings. Practically none
Of this if opinions of experts be accepted,
has found its way back into the market
account. The usual investment business
has fallen off greatly also and this is SIM
ply reflected, especially in the bond mar
ket. The prices of gilt-edge securities CIV
ing Substantial returns on the money in
vested have fallen to abnormallt low
figures. 1t is sufficient comment to note
that New York Central 3h per cent. bonds
which have sold as high as ia, sold within
the last week below Sc. There can be no
question about the value of these bonds
and the decrease in the price certainly can
not be traced TO the vagaries of the stock
Other equally well-known and good bonds
are selling at prices relatively as low and
are going begging for want of purchasers.
Investment demand more strictly repre-
sents the actual temper of the money hold
ing class than anything else. For this
reason the dizziness in the bond market and
in the demand for investment stocks would
seem TO point q particular lesson. ..
1t is generally admitted by bankers that
the situation in the industrial and financial
lines is all right, but they do not seem to
be quite so optimistic over the money mar
ket. That is. in fact, the one bogy which
they hold up as warning to those who
would seek to bring about a heavy spec
ulative movement. 1t is very difficult to
discover wherein the trouble lies in the
money market. There is, of course, the ex-
ample of last year with it's stringency and
make-shift policy TO induce conservatism,
but the feeling now. especially among bank
ers, seems to Ae of the ultra kind. Factors
that determine the situation I'm the money
market are, the whole, favorable. For
the past six months, at least, the market
has either been dull or subjected to drastic
liquidation. There has been no speculation
to amount to anything which would cause
a drain on the monetary resources or the
banks. Gold exports there have been, but
not ON very heavy scale, and the inflow
of gold from the klondike has begun earlier
than usual. Currency from the interior has
returned up to the present time in unus-
ually heavy volume. and IL private reports
and the government crop report be taken
erage this year will be decidedly less than
| t was last year; consequently the demand
for money from the West and Southwest
for 10 be
prospect that the Panama Canal payments
will disturb conditions, but 1t is almost sure
that these payments will he made through
| the medium of bills of exchange and the
actual money held in this market. Banking
interests are seriously opposed to any
heavy speculation, because of the money
such great grounds for worry as some of
them would like to make appear
sxs
During the past month there have been all
sorts of rumors of certain speculative in
| terests in the street being in trouble. The
| variety of names suggested leaves one In
| doubt as TO whether there was any actual
| foundation for any of the stories or not. II
| is a fact, OF course. that some of the
| plungers of last year are very much chas-
| tened in spirit and weakened I'm bank ac-
/ count by. the sharp reverses of the past
| few months. Gossip has had it, to be spe.
cifc, that a certain former railroad man
| who was identified with the Louisville q
| Nashville deal, had suffered severely. This
can be denied specifically, but one thing oil
| interest in connection with his affairs car
| be asserted with equal positiveness. Ii Is
| a fact that the Iowa Central and Mime.
apolis * St. Louis are for sale, and at the
| first up-turn in the stock market they will
| be sold. The purchaser is not definitely
| known and ii would be idle to speculate
| but private information on this subject Il
| insistent.
| disappointment has been expressed sew
eral times at the failure of the directors OF
the Louisville * Nashville to increase tn.
dividend. The disappointment is. in al
! probability. most keenly felt by prominent
holder of Louisville & Nashville stock who
figured very prominently I'm the origina
! coup by which the road was wrested from
/ The Belmont interests. This particular indi
/ yiduaI has at least % 900 shares of the stock
! bought ON the theory that when the Allan
| tic coast-line took over the property IN,
| dividends would be forthwith increased Il
| per cent. and perhaps Z. The actual re
| suits are well known. and the stock Is nov