The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-23
POWER OF THE BIG STEEL TRUST
NEW INDEPENDENT CONCERNS W.
ABLE TO COMPETE WITH 1T.
Western Railroads Lead the RecOv-
Losses by Bear Operators.

market Values had been unduy depressed
and when the turn came it only nat
ural to expect sharp action. A rally of
to Is points in two weeks represents from
one-quarter To one-half the ground lost
during the decline extending through a
period of nine months. This bulge covered
a good deal of ground with astonishing
speed-too fast, in the opinion OF many eX-
perenced operators, TO last. Consequently,
Wall street is full of people who look for
a setback of considerable proportions. On
the rally the fact was revealed that there
was an enormous and unwiedy short in
terest, and its buying to fill outstanding
contracts of sale contributed more than
anything to the advance. The partial
elimination of this short interest deprives
the market of a feature of strength and
imparts to it technical weakness. The pro-
fessionals are on the watch for such de-
velopments and stand ready to take ad-
vantage of them.
The Standard Oil group of industrials.
notably the Coppers and Smelling, have
been conspicuous in the rally. Urgent de-
NAL is made of the stories of settlement
i'm the copper war, and specific contradic-
ton is entered of the report that Heinze
has been taken into camp by the Anal
gamated Copper interests Wall street
listens to these denials placidly, but pre-
fers to be governed by the testimony of
the tape rather than by the verbal state
ments of the mouthpieces of the Standard
Oil crowd. The tape confirms the reports
Of settlement, and the accuracy of the
settlement theories is not questioned among
those who have the best sources of real
inside information.
The Western roads have led in the ad-
| vance in the railroad quarter. Union Pa
cific, Missouri Pacific, Atchison and Rock
Island were conspicuous, with the last
named distinctively the leader. Rock
| Island common pounded down under
20, although it is notorious that the prop
erty is earning . to 10 per cent. on the
| junior issue. A larger short interest de-
veloped in that stock than in any other
on the exchange. 1t happened,
therefore, that on the up-turn there
was a larger volume of outstanding
contracts to buy in. Attempts to cover
| led to the discovery that the floating sup
| ply of Rock Island common light. On
| the slump il had been absorbed by inside
interests and taken out of the street. This
|
forcing the stock in less than a week to "a,
| an advance of SIS d share from the inside
figures made the first of the present month.
! The spectacular performance of this stock
called attention afresh to the remarkable
| group of men in control of this property
which now embraces nearly 1900 miles OF
owned and controlled railroad, extending
through greater range of territory than
ther In
who are behind Rock Island, and who have
developed it in two years from 1900 &c
| 1900 miles, are doing now precisely what
Col. Tom Scott did with the PennsyI-
| vania thirty years ago. and what Comrno-
| dore Cornelius Vanderbilt did with the New
York Central. Both Scott and Vanderbilt
| were denounced i'm tneir day wild specu-
| lators and unsafe men who were fifty years
| ahead of their time and We're jeopardzing
| their fortunes and the fortunes of their
| friends by hazardous attempts to do toe
| much. The Pennsylvania and New York
| Central stand as monuments to the wis
| dom of the creators of the TWO great sys.
| TENS. The friends of the Moores and REID
| and Leeds anticipate equally successful re.
suits in the case of Rock Island money
Garner.
Many of the independent steel and iron
works erected during the past two years
with the money derived from the sale OF
-
poration and other big industrials are or
the market, and numerous offers to sell Out
have been made to the Steel Trust of late
In every case they have been rejected in
| pursuance of a rigid policy decided upor
from the first 1T became apparent soor
after the organization of the United State:
Steel Corporation that the construction Of
opposition aud independent plants was be
|
announced purpose of those engaged il
the business being to compel eventual pur
chase as the cheapest means of Sitting
competition. Too late the men who pu
their money into these opposition enter
prises find that they cannot compete will
the giant trust and that their fate will b,
ultimate extinction if they keep up a one
sided fight. They have not the capital t,
successfully combat the trust, and they ar
already realizing that fact. In grea
ma jority of cases they are Obliged to bl,
raw materials in one form or another from
the United States Steel Corporation, which
more than a year ago decided to mask III
the prices of everything sold to competi
tors. There was hard fight in the man
agement before this policy was adopted,
considerable element taking the position
that the corporation would make friend
by being generous with its enemies. Tn
more merciless view was taken. however
and rivals find themselves taxed at ever,
point where taxation is possible. Standar
Oil methods are being followed whereve
they can be applied to the business of tn
United States Steel Corporation Compe
tition is being discouraged i'm every quar-
| ter The iron hand is not being openl
shown, but il is, nevertheless there. and a
prices decline the inilexibility of the trust
plans will be more clearly disclosed. Wit
| a cash working capital of $75000,o00 tn
fsteel trust expects to dominate the situa
| ton and keep its machinery going when tn
| fires are banked In the furnaces of ever
other concern i'm the country. 1t claims L
! be able TO manufacture cheaper and {
undersell both in the home and foreigi
markets Ii is the confident expectation
| of the management of the steel trust tina
| IL will be able 10 give employment TO nearl
| its entire force OF men throughout an
period of hard times which may come upo
| US and thereby give an object lesson of IN
| value of the concentration of business.
, The financial district OF New York is no
| inconsolable over the growing prospect
of defeat of financial legislation. Oppo
sition 20 this class OF legislation is far fror
being confined 10 the West. 1t is foun
| right in Wall street. and among the mos
conservative people there. Uncle Joe
! Cannon's Characterization of asset eur
! rency as rubber money finds smiling re
| Spouse among men who have been conf
IDENTIFY counted upon as warm friends c