Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-03
Financial News Letter
By W. q. NICHOLAS.


Special Correspondents Of The star.
NEW YORK. September 2. 1905.
The stock market did not Immediately re-
spond to the peace announcement as most
people expected. On the theory that the
market would react on the receipt Of good
news the professionals sold stocks freely,
and several Of the heavyweight plungers
took profits on large lines. This caused the
market to sag appreciably in the face OF
what the public looks upon as the most i'm
portant piece of bullish news that has been
received for year. The European markets
have been acting better than those on this
side of the Atlantic. There has been con-
certed action on the part Of the conserva-
tive interests to check any tendency to un-
due speculative exuberance. The feeling
exists, nevertheless. that all the elements
entering into the general situation tend to
Improvement. Holders of securities are not
lessenfng their lines, and the prevailing SEN
timent is that prices will work materially
higher between now and the end OF the
year. Conditions could not be shaped bet
ter for wholesale dealers in securities, and
they are acting as though they had only to
wait to obtain very much higher prices for
their goods than they could obtain at this
time. The money market at home shows
Some signs of overstraining, but our credit
abroad is unlimited, and SO are supplies Of
funds in the foreign centers. This is re-
garded as insurance against money string
ency In America during the remainder of
the year.
John Mitchell, leader of the coal miners
of the country, is becoming more outspok-
en-, and his utterances are having more or
less market effect. 1t would appear that
Mr.. Mitchell has succeeded in organizing
his forces and will make demands on the
anthracite producers which will at least
command respect. Mr.. Mitchell Is not only
good labor organizer. but he is leader
and diplomat. He is getting ready to go
against the trust with case which will
appeal strongly to the public. The an
thracite coal roads are making money at a
prodigious rate-they are making more
Their properties are soaring sky high, and
In this very fact lies the danger of the
mine workers. 1t is more than barely pos
sible that the insiders have affected dis,
tribution of their stock at high figures. and
that they will encourage a strike in order
to break the stock market, make a Wall
street coup and get back their stock at
lower prices. This is an old trick of high
finance. There has been an extraordinary
manipulative advance in all the anthracite
stocks during the last six months, accom-
panied by the widest possible advertise
ment of enormous earnings This has ex-
cited the cupidty of the mine workers and
was the inspiration Of Mr.. MitchelFs move
mant for a demand for higher wages and
SHUfleT uouTS lneTe mas Deen no STOCK
jobbing scheme in view, but If there were
the game could not be better framed for
its success On the Wall street tips which
have been sowed broadcast the public has
been invited to buy the stocks Of the an
thracite railroads. and 1t must be that the
play has accomplished its purpose, for be-
yond the question of doubt there has been
heavy distribution of inside holdings on the
big rise. Naturally there would be every
incentive for inside manipulation for a
break. Mr.. Mitchell is clever in his way,
but it is quite possible that, in his innocent
japanese way, he is playing into the hands
of his friends the enemy
He may only be a pawn in the hands OF
the sharks of Wall street. If he can be IN
duced to pull off a strike and thereby break
the stock market, particularly the anthra-
cite coal stocks, he may unwittingly be
acting as a mere agent for Wall street
combination. Two and half years ago
the anthracite coal stocks advanced during
the entire progress of the strike. At that
time sinister rumor was afioat that the
employers could pull off the strike whenever
they got good and ready to do so. This
was serious reflection on Mr.. Mitchell
yet when the market was in a proper state
the strike was called off The finish
was apparently triumph for the labor
leader and discontinue for the insiders.
Wall street laughed at the public's con-
structton placed on the denouement The
tape never lived for minute throughout
the entire program of the performance. 1t
had steadily told the story from beginning
to end. Mr.. Mitchells integrity is not I'M
der discussion. No proof ever pro-
duced that he turned any kind Of trick
to his own advantage two and a half years
ago, although many covert charges were
af1oat to that effect. In a paramount de-
gree he is the ablest leader unskilled labor
has had in a great many years, and If he
can impress the employing class that II Is
to their advantage to keep him In the fore
ground he will very likely be able to get
more for his followers than anybody else
could.
X
Now that George Gould IL back from
Europe, interest is rearoused as to what he
will do toward financing his many ambi-
tious schemes In connection with his exist
ing railroad systems Coincident with his
arrival there appeared In newspapers which
derive inspiration from Standard Oil banks
and Kuhn, Loeb & Co. articles reviewing
the Gould financing Of those properties dur
Ing the last year. The object manifestly
was to discredit the new securities bearing
the wisdom of the enterprises and the abil-
ity of the men behind the guns to success
fully carry out their projects 1t would
not be surprising to a bitter warfare
break out between the Gould and Hartman
factions. The Hartman people have been
inviting such warfare, and II George
Gould should take 1t into his head to fight
back 1t Is in his power to do considerable
damage. He might. for instance, inaugu-
rate a rate war which would be effective
In 70 per cent of Union Pacific territory.
Noteworthy in this connection is the fact
that, like his lamented father, George
Gould has prejudice against making
money on the bear side Of the stock mar
ket.