The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-06-04
GOSSIP or WALL STREET.

Wuu0 uo TlLt8OuTB tn'oSo"'
eventually rried out by the Goulds. was
being planned between Andrew Carnegie
on one aide and Messrs. Connor And Herrick,
controlling the wheeling and Lake Erie, on
the other. as told In this column several Gays
ago, Mr. Carnegie at one OF the interviews
said: why not extend your Wheeling ana
Lake Erie TO conneaut also. Hcauemsnf !
am going to lid big plant there ana you
may have the tonnage Then. outside
Of the business In hand, Mr.. Carnegie added
abruptly: 7 can tell you, gentlemen. not TO
have any steel stocks Mr.. Carnegie at that
time was perha ps the most for nidable indi-
vidual figure that has ever appeared In the
Industrial Affairs OF this country. he was
intent upon campaign OF aggression wn'on,
had It been carried on, undoubtedly wonid
have demoralizsd the steel industry. railroad
conditions in the East and collateral lines OF
business TO an extent beyond the understand.
ing OF any layman. To overwhelm ana
tsrrorize competition In his own teld OF steer
making wss but one and not altogether the
most disconcertins feature OF his program:
He proposed to make war upon his railroad
enemies. In his feud with the Pennsylvania
he had reached point where ne was 90
tsrmined to have bis own railroad facilities
east and vest from Pittsburg. HIS oner
70 furnish all the money to build the Wheeling
and Lake Eriee extension to Pittsburg was
characteristic. Without disclosing his plans
in detail, he announced that after the Wheel
ing and Lake Erie had entered Pittsbure ne
would have railroad OF his own TO tidewater.
and nobody who knew him then doubted
for an instant that he would have II. NO
achievement within the range OF his enormo's
resources at that time could have ahoroeo
him creator personal satisfaction than to
break thu Pennsylvania hold upon the rail-
road situation at Pittsburs and he seriously
meant 10 do IL. His hatred OF the Pennsyl-
vana was an astonishing passion. No other
one man has ever nnenaced the industrial ana
railroad interests OF this country as Mr. Car.
ne gle nenaced them az that avenging perioo
Of his career, and the knowledge that Anoy
Carnegie" was on the warpath struck Wal!
Street with CONSERVATION. He himself hao
said: 7 can tell you. gentlemen, not 10 nave
any steel stocks The situation called for
heroic measures. and II was Mr.. Morgan who
employed them. He formed the United
States Steel Corporation. and Mr.. Carnegie,
In the midst OF his hostile preparations. was
induced to sell out.
Tho haste which characterized the Torma-
ton Of the United States Steel Corporation
merely reflected the extreme necessities OF
the situation. 1t 10 still the opinion OF disin-
terested mon who were In touch with that
situation then and who see II now In It's proper
perspective that the creation OF the United
States Steel Corporation met crisis IN the
business affairs OF the country. and that BY
no other means could disastrous warfare
have been averted-a warfare. It is asserted.
which very likely would have caused break
ing down in general business. They believe
that in this one achievement Mr.. Morgan and
his associates prolonged for several years an
era OF industrial prosperity the continuation
OF which depended very largely. II not prl-
m arily, upon the elm nation OF Mr.. Carnegie
and his policy OF aggression
Although as a speculative influence the
bank statement yesterday was entirely dis
REGARDED In the stock market. which showed
no perceptible change Of tone in the last half
hour Of trading, the disappearance OF so u IN
cash is a thing that tho conservative Dull
element will want to have fully explained
Toward the end OF the week there had been
some rather heavy calling OF loans. and by
this means the loan account was so reduced
as partly to Offset the disappearance OF cash
holdin "a, but there was nevertheless shrink
age OF nearly Is. 800 900 in surplus reserve.
which brings the total OF surplus reserve down
to 4 point where there Ia left a very slender
margin, some think. for extended operations
on the bull side Of the market. This Is the
opinion OF operators who for several weeks
have been waiting only for the opportunity
and incentive TO become more active on the
y
them feel somewhat uncomfortable and less
confident. and although they believe that the
money market will straiRhten itself out and
that this decrease In cash can be satisfactorily
explained. they admit that II money sh, lid
become permanently less accessible than It
has been 1t would upset . good many market
calculations that are based upon the pros
| pect OF very easy money market conditions
| through the summer and we'll into autumn
somewhat more conservative and non
! oommittal atti tude toward the market was
| shown yesterday In quarters where only a
| weak previously the feeling had been that a
! turn upward in prices was near at hand
| This increase OF conservatism was due. APP
| parently, more TO consideration Of the
various outside infrenees affecting senti-
ment adversely. notably the influence Of the
| Equitable affair. than TO anything existing
| in the market itself touch OF uncer-
tainty a. to the money market probably
had something 10 do with IT, An operator
| who represents this body OF conservative
| sentiment said yesterday: TT Is MY en-
perience that when Clouds overhang thu mar
ket IL Is better to let speculation get into the
| narrowest nut possible and remain tn.re
until things clear of. feel scarcely less COLI
fdent Of higher prices than ! have felt. bit
| I see things here that are likely to restrain
! outside buying for a while. and under the
| circumstances think the wiser policy Is to
| ait down and wait" Brokers assert that the
| EQUITABLE affair Is awakening In the public IS
mind feelings Of dlstrust and suspicion which
| are inimical to the stock market.
! very prominent Stock Exchange house
| that has been billing Anal gamated Copper
for some time writes: 1T has not been de.
cided yet whether a report will be made to
the stockholders lat the annual meeting on
Monday, but the facts in the case are these
| Such report was compiled last Febr AIRY, and
| 1t was compiled with the understand that
! Il should show the exact condition of the
| company All doubtful items that might be
olassed a. assets we're carefully eliminated.
! and We know from those who have seen the
report that II 10 absolutely astonishing and
reflects the superior wisdom Of the mana ge-
ment The condition Of the company 10 a
| revela ton. Based upon our knowl-
| edge Of the situation we venture to predict
| that Anal gamAted Copper will In Z short
| time be placed on a per cent. basis and that
| tn stock will sell well above par"
| The activity on the long side Of Reading
| last week was the FIRST manifestation OF q ten
| dency which s expected TO become much
more pronounced in the near future II market
| conditions favor sustained operations for the
| rise. It will be entirely feasible, bullsh
| commentators believe. to create an active
| speculation In stocks whose investment
values may be raised before the end OF this