The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-02-14
Nicholas Says Some Of the biggest
Men i'm Standard oil Are Associated
with SuIIy i'm Cotton.
,eeia, 70 the Indianapolis Journal.

The street had about made up its mind 70
look with compacency the Russo-Japanese
war. provided the struggle could be confined to
those two nations. but the panic in the cotton
market and the Baltimore fire were incidents
too near home to be viewed with Indifference.
From strictly waIl-street viewpoint the cot
ton deal has been the chief feature. The week
marked the elimination of a collapse that car
ried the price of that staple down s25 a bale
under the quotation reached about the begin
ming OF the current month. Daniel J. Sully,
the bull leader, had made arrangements to take
a long rest and in the quiet of some winter re-
sort plan what he might do with the S12, 900
and $15.oOOOOO in profits made the bull side
Of the market during the last year.
He abandoned his vacation. organized another
bull pool and at last accounts again in
the cotton pit laying the foundations for another
campaign scale even more extensive than
the last. Associated with him of the
strongest spectators in the street and he is
supposed to have absolute control of larger
cash backing than was even given James r.
Keene when placed in charge of the manpula-
tion OF United States steel stocks.
1t is an open secret that some Of the big
gest in the Standard Oil associated with
sully and have been. They have the utmost
confidence in his generalship and in his thorough
understanding of the cotton situation.
Terrific losses suffered by the public
the slump in cotton. and the bucket shops that
wlthstOod the pressure back all they had
lost and more, Cotton planters. for the most
part disposed of their product before the
climax Of the advance. and the real substantial
interests of the South not materially af-
fected by the riotous furry in the speculative
pits.
The break in cotton disclosed the fact that
close intimacy existed between stocks and the
gamble in that commodity. Great numbers of
stock spectators had gone into cotton and one
effect OF the crash was TO cause alarm among
the stock houses TO the solvency OF many
Of their clients. Indeed, not few Stock Elk
change concerns were themselves hurt badly;
so badly In fact that they have announced their
intention to give up their in the Cotton
Exchange and get out of that line of business
entirely. There have been innumerable freeze
outs of speculative accounts due TO the cotton
huke. but remarkably small number of actual
failures such as attract public notice
The decision Of group Of strong bankers
TO virtually underwrite the securities of the
fire insurance companies served to prevent
dangerous stock market panic after the Balti-
more fire. Tens Of millions of dollars of fire
insurance money is invested in hgh-class stocks
and bonds. 1t is notorious that this class of
securities is the hardest to market without
sacrifice in narrow. nervous panicky state
Cheap stocks on the active list are much more
easily handled and are really less dangerous
for banks u carry collateral than OF the
gilt-edGed shares that sell at premium of 100
TO 800 points. on the sale Of few hundred
after the Baltimore fire. break OF points or
ern and Northwestern have wide swings on
trades OF limited lines. There many others
which might be named, but these will
to illustrate the point.
The position taken by the bankers syndicate
in regard to the securities of the fire insurance
ccr,1r ,arties an To he
bear leaders in the stock market who had
looked for a big killing When they met with
resistance they were not long in locating the
cause.
The old stagers Of the stock market have for
some time past been buying Steel common pay
ing for it and putting it away in the bottom
of their strong boxes. l asked one Of them why
he did not buy preferred instead of common.
What's the use the reply LOT buy
ing one share of stock.at 80 when you can buy
five share for the money? When condi-
tions legitimately warrant advance in Steel
preferred the common will so up with it, not
quite so fast. perhaps, but nearly L expect
TO make twice much may be three times
my investment in Steel common l would
If l went into the preferred"
1t is the habit of a considerable class of ex-
perienced operators IN Wall street to invest in
low-priced stocks when the market is dragging
the bottom Mr.. ID. o. Mills is of the
most successful men in this line OF investment
lie had re3mS upon redmS OF Baltimore * Ohio,
A Pacific
acquired when these stocks were at their very
lowest ebb after the reorganization Having
the mercantile trait strongly developed. il is
SAFE 10 say that he let 80 or a goodly portion
/ of these securities when the market bump
ago. Mr.. b. O. Mills. by the way. is one "a Of
the very richest in America. lie will ''cut
up close SlV0 00.0)O. II is estimated by those
/ in a position 10 form judgment Of the wealth of
\ the multi -mliOnaires
! There is more than a suspicion that John w
| Gates. the Western plunger, was acting for the
/ Standard OIL interests IN the recent bull manip-
\ ulatiOn and that his principals succeeded in I'M
loading an immense quantity or securities at
good average range OF prices. a level cOnsidera-
! bly, above that now prevailing.
] IL a recent letter / mentioned that Mr.. Gates
! and the Rockefellers had established a commun-
/ ity OF interest and the street IS just beginning
/ to hear and believe the quiet gossip Mr.. Gates
succeeded in working up a considerable furore
| in the stock market ana MS Following for a
/ time had the game all their own way.
| Then something hit the boom amidships and
| came a wholesale collapse. The Gates orators
on the exchange and in not a few Of the Of
as they were bullish around the top. The news
papers Were full OF cutlery over the bad judg-
| warnings To the public TO hereafter fight shy
OF his leadership. 1t is not improbable. how
! coup for the Standard oil principals.
BY the way. the ex-goyernment official who
Standard oil crowd Is quoted having said a
/ few days ago that his people would probably
more.
| During January the United States Steel Cor
poration sold 5000 tons of finished steel prod
ucts daily which compares with sales OF 30.
tons daily during January 1893 \ considerable,
portion Of this business was for export trad,
! at prices which while netting the company :
proft. considerably under the prices OBJ
tanned in January, 1893. Now that the railroa al
are succeeding In selling securities and piac
ing themselves in position To make needed i'm
prOveuents. United States steel people believ,
that there will be rapid change in steel trad,
conditions due to the placing of railroad orders
The well-known fact that there is an intimat
connection between high finance and high poll
ties is my excuse for the introduction in thi
letter OF a paragraph ON national politics.
am in a position to say with positiveness tina
behind the hippodroming of various presidential
possibilities the New York Democratic leader
! are carefully nurturing movement in favor q
Mayor Mcclellan. II their plans do not misear
| ~ the mayor OF New York Will be presente
! 10 the ma tiona convention. hacked by the unite
| delegation from the Empire State.
The Iammany Chieftain. Charles F. Nur
/ phy. makes no concealment in conversation VIII
| intimats friends that he is not for Judge Par
I onize HIM Parker IS the candidate OF the paHf
| Bennett Hin faction, anu for that reason
/ FOR no other, ne viii be opposed In the en-
! by the new Tammany control. which holds hir
/ ia as IN regard Croker ever did
The Tammany support would be cheerful
|. | given Mr.. Cleveland, but very few people loo
/. , On tho nomination of the ex-President as
serious possibility. The reserve or backgroun
! candidate OF the real leaders OF New York an
the one Gpon whom they are likely To dnall
unite UNDER the operation OF the uni rule
Navor Mcclellan. Colonel Mcclellan has thil
TAR beCa very creditable executive OF the cit