Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-06-04
A PERIOD OF DIZZINESS
Everything Points to this Condition il
Wall Street.
poudence of The Star.
BY W. c. NICHOLAS.


Special Correspondence of The Star.
NEW YORK, June 3. 1908.
Every indication points TO a period OF
market duIlness. Conservative commission
houses are advising their customers against
purchases and are counseling patience
They admit they see nothing very bearish
in business conditions, but explain that
there is an obvious lack Of bullsh en-
thusiasm, coupled with the absenteelsm of
lot of influential traders. majority of COM
meutators have settled among themselves
that the decline Of the last sixty days is i'll
- large part merely a reaction from over
speculation. The Misrepresentation referred
to was within very much narrower bounds
than is usually found in big market ad-
1-3nres and was confined to a very much
smaller number of persons. The multitude
refused persisteutly to engage in the game
and the buying and selling was done by the
professional and semi-professlonal element.
which was abundantly provided with funds
with which to carry on specuia I've cam
paign The investing public put a large
amount of money in bonds. but even that
demand appears to be satisfied for the mo-
ment and business therein is shrinking
TIE sales made these days are at conces-
sionS from best prices obtainable a few
weeks go and the drift seems 10 De sun
downward although not strongly so. Crop
uncertainties. Il Iul in Industrial activities
in certain dire ctions broadcast diStruSt of
financial management in high places and
slight touch Df uneasineSs over the poht-
cal situation among the things talked
of i'm explana ion of current market in
decision. Slight fear is entertained of seri-
Gus further decline, but most people appear
quite willing u hold off. 1t might be re-
called, however. that commission men and
market advisers are generally found luke
warm or bearish when prices reach the
lowest point after a break. 1t takes cour-
90 IN al hoe IN dull and 81
gish market whereas anybody can advise
Investments when things are booming.
Some months ago a bull campaign IN
Chicago Great Western common was wide
1y advertised IN the street The house in
trusted with the management of the manip-
ulati0n issued calls on the stock for a
large aggregate total and distributed them
freely among the touts and financial la
borers of the district. The deal ORA gged
through several weary months and finally
dattened out. the announcement being pri-
Nately made by the directing spirit that
conditions were not right for a bull play,
but that later on" something would be
done for the corps of helpers who had
contributed their services gratuitously to
the enterprise. 1t now turns out that the
sole purpose Of the deal to market a
block of Sl4 600O0 of the stock issued in
exchange for the Fort Dodge road a little
Iowa line cast off last year by the Rock
Island system Wide public interest was
aroused in Great Western stock bv the
very general and generous advertising given
the alleged bull movement, which, as stat
ed. was little less than a bunco game The
uteFary eontingent of Wall street is getting
Ieary or calls issued TO gain their good will
1t Is familiar and ancient trick of market
manpulators 20 buy the help of an indus
trlous and possibly influential element in
wall street by the issuance of worthless
cans but the practice has latterly grown
INTO distinct dsfavor. The worst frost Of
mat kind which has visited Wall street in
recent years was I'm connection with the
fotation of Steel securities four wears 400
cans were distributed to the extent of
tens of thousands of shares and II is NOT
OF record that in a single individual in
stance a dollar was realized on them nv
Their holders. That fasco may account for
the III will which is so often shown rnv,
IN IN talking clubs against representatives of
I dropped into one of the downtown res
taurtnts for early cup of coffee a day
or TWO ago and my waiter. a wiry little
SeotchFnln, handed me a morning paper to
glance over. at the same time pointing TO
paragraph of comment on the purchase
py !. erront Morgan of an ANTIQUE Gun
Tor 90 Tough amt it." he said and
then remembered that the little man had
toiu me Il Sorrowful story Il year and a
half ago about the loss of his entire savings
Tor period of ten years (s1 TO9l in a mar
aslnal purchase of Steel common. I re-
called also having asked the young man
what mad induced him to invest his hard
earned money in that kind of security to
whlch query he had made the reply that he
mad felt sure that anything to which Mr.
Morgan had lent his name must be all
right 1t was solely on account of Mr.
MorS1n's connection with the corporation
that the waiter had put his money into the
stock. hrst buying a fractional lot and then
q ~aF o. nTTf IT- Iii
shares TO his line the price declined fl
nally reaching the extinguishment point at
D. The little Scotch waiter is a type of
many thousands of others who nut their
money into Steel common about the same
time and with the same fate being in
f1uenced to do so by the self-same reason
1t would appear that Mr.. Morgan came out
all right He can pay $4,000 for cup or
any other extravaganza and could burn up
millions without the slightest inconveni-
ence to himself if the within should hap
pen to strike him. The walters. the bar
bers, the milliners, the blacksmiths the
clerks. the barkeepers and the small trades |
men who bet blindly their faith in Mr.
Morgan and his associates were not so
fortunate. Their experience stands out in
sharp contrast to that of the multi-mil-
lionaire. Mr.. Morgan sold his first" TO
use the phrase coined by member of Mr..
Morgaus firm in correspondence incidental
10 the formation of the malodorous ship
building trust 1t is by selling theirs first
that the big manufacturers of securities
in Wall street enabled to buy marble
palaces and enjoy the luxuries of steam
yachts and special trains.
A visiting United States senator just in
from Washington says it is understood in
the national capital that Mr.. Roosevelt.
while not seriously intending to force tariff
agitation next winter. will nevertheless use
that issue as a club to drive reluctant con-
gressInen to the support of his railroad
rate hobby This report confirms suspi-
cious entertained in the financial district,
b,rt fails TO entirely allay apprehension. II
disCloseS the White House incumbent as
Professionally holding to the background idea
OF tariff revision.
An authentic summariZation shows that
the eight leading life Insurance companies
OF this country pay s28. 1871 600 for salaries
: and that the thirty-two companies doing
business in the United States pay for the