Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-06-07
BULLS AND BEARS

NEW YORK. June 7.-One direct Wan
street effect of any developments tending
to diminish the business of one or more
insurance companies is usually lessening
Of bond market buying power. 1t does not
appear that the Equitable affair has SO
far been reflected to any serious extent
in the bond market but there is no ques-
ton as to the influence of this scandalous
episode on the stock market. and that is
why professional Wall street has been and
is hoping in its happy go-lucky way for
settlement"
Brokers and spectators alike cry peace, "
but there is no peace; directors whose
names have In the past been words to con-
1ure with are dropping out. some with
prestige all gone, and the interests that
control the society show no signs of adopt
Ing the one sure course by which the Equit-
able can be made to continue a going con-
Germ. 1t is hard to see where the thauma-
turgist, for whom Wall street is hoping is
coming from.
AT the present time. by official admis-
sion. the Equitable is practically out Of
business. To all intents and purposes 1t is
In process of liquidation now, If, as appears
TO be the case. the comparatively trif1ing
amount OF new business Is exceeded by the
policy cancellations from death, maturity
ana surrender for paid-up or cash values.
Undoubtedly the Equitable like any other
oid-lne company whose business has been
conducted according to fundamentally
computed averages, can liquidate all its
policies to the last dollar. 1t can continue
receiving premiums on it's existent policies,
investing and outstanding its funds and
paving policy claims as they fall due. pro-
cess likely to stretch over two generatio
IL that Is what the controlling interest in
the Equitable desires. that is what it can
have.
Some drastic measures are necessary,
however, according to certain interests in
touch with investment sentiment through
out the country, If 1t is desired to put the
Equitable once more in the way of doing
active business, and more than that, If 1t
is desired to seize a splendid opportunity
that is offered to begin the slow process of
reviving and upturning the delicate plant
OF public confidence In conduct of corpor
ations in general and fiducary institutions
in particular.
This plant was sadly blighted by the
events which made necessary the "rich
mans panic" in 1908 and has been rendered
all but moribnnd by such revelations as
that which showed the city banks connec-
ton with the Montreal and Boston manip
ulation, the Bigelow case in Milwaukee and
the overshadowing Equitable affair.
Should all the remaining directors of the
Equitable resign and a new board he con-
stituted with one awe-inspiring head that
would, In the opinion of men competent to
tGuSe, 10 Itlle 10 accomplish tne neeuIul
results indicated. Should new officers take
the places held by the present ones, from
Hyde and Alexander down, that would do
little more.
There Is. as the situation is received in
some important quarters, one certain way
to bring right results to pass, and that is
by surrendering control of the society to the
policyholders. If this surrender cannot be
forced by existing law or by legislation.
and by carrying out most If not all the
recommendations as to changes in methods
of writing insurance and conducting bust
ness which were made in the shelved report
of the Frick committee
Meanwhile, depressing as are the de-
velopments in the Equitable affair, all
that can be aScertained by careful inquiry
goes to show that stocks are very strong
ly held in hands able. barring crop fall
ures and a general business paralysis
two improbable events at the present out
look-to carry them through a season of
uncertainty and unrest. Wall street COM
mission houses are in an easy position
apparently, and there are evidences that
the short interest is largely affording an
element of strength to the speculative
situation which offsets to an extent the
lack of public interest AS for stocks
themselves. a sagacious investment
broker said today, Real values remain"
The Coal Trade Journal says:
mo particular change marks the trade
reports which come to hand this week,
and the bituminous market may perhaps
be best described as drifting. AS time
goes on it is gradually reaching the goal
OF better prices and more active condi-
tons slow though the progress may be,
When we turn from soft coal conditions
to the state of the anthracite trade we
continue to find a difference as marked
as the change from darkness to light.
The anthracite tonnage for the month
of May was something extraordinary
about 5000, 900 tons the preliminary esti-
mates indicate, and very large percent
n
wards The tonnage of coal taken by deal
ers during the summer will have an i'm
portant bearing on results next year, and
il is possible that some operators at least
will not be at all anxious to effect sales
during the summer, but would rather
look first to the requirements of their
own stocking places
And. of course one of the great events of
the summer from a trade standpoint will be