The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-09-09
Is the Conspicuous Feature of
the Stock Market
EXCESSIVE SPECULATION
The Public Takes Fright Quickly and
Is Remarkably Alert to Un-
favorable symptoms. FURRY
In Money.
BY W. G. NICHOLAS.


ket. accompanied by distribution of shares
throughout the general list. specula-
tion In the half-dozen favorites which
have held the center of the stage for the
last six weeks was carried to spectacular
excess and under cover of the rigging
processes, insiders have succeeded in I'M
loading quantities of shares. Impressed
with the ease with which the trick was
turned the market leaders have gone into
other things hoping to engineer fresh
deals before the turn comes compelling
change of front. The public takes fright
quickly, and is remarkably alert to I'M
favorable symptoms. Hence 1t is that
the outside spectators and the semi
professionals are actually landed with
fewer goods than the insiders would like
to see The juggle admits of almost
unlimited manipulation for the rise, how
ever, and the big combinations continue
In supreme demand of the speculative sit
uation A furry in the money market
was organized for effect on the federal
treasury and to furnish excuse for gold
imports. There had all along been valid
reason to believe that at the right time
Secretary Shaw would listen to the cries
of Wall street. but before coming to the
rescue he had to be satisfied of the pres
enee of a real, legitimate need for the
available treasury funds. He has a
prejudice against lending government as
sistanee for the mere encouragement of
speculation, though apparently always
ready to lend a friendly ear to the de-
mands of the business community as rep
resented by the agricultural, commercial
or,l fr1 rfoI old lie mol
Icy is to impart to the money situation
as much needed elasticity as the law al
lows. and even to go out of his way in
emergency to establish precedents His
helping gold imports is a case in point.
1t is fact, however, that most impor-
tant interests have made their money ar
rangements to carry over the period of
expected stringency, and high rates will
not hurt in influential figures, although
the sentimental effect of skyscraping fig
ures may be temporarily bearish when
the pinch comes. 1t could hardly be 9TH
erwise.
Settled Purpose.
There is evidently a settled purpose on
the part of railroad arrangements to con-
tinue the policy of enlarged dividend dis
bursements as fast as earnings Justify.
The hit made by Hartman produced a
profound impression and the example will
be followed very generally, the most con-
sentative directories evlncing willing
ness to adopt a more liberal treatment
of stockholders, amounting to almost
reversal of form. Even Standard OIL,
whose influence has been steadily against
prodigality to shareholders seems ready
TO loosen up at last. 1t is not only ap
proved of the Hartman departure, but Is
yielding in other notable directions. A
case in point is the dividend on Steel
common, which came as complete sur
prise In that particular instance 1t is
stated as a positive fact that not even
members of the finance committee OF the
trust knew what was going to be done
until the vote was taken. 1t is related
that Mr. Frick stopped on his way to
the meeting to pick up Mr.. Morgan. He
found the great banker in a particularly
grouchy mood, and was met with a curt
refusal
NO." said Mr. Morgan, IL will not
go to the meeting today or to any other
meeting of the directors of finance com
mittee until a dividend is paid on the
common stock. 1t is an outrage that
the stockholders should be deprived of
participation in the earnings of the cor
poration when It's treasury amply war
rants the payment"
Come along then, If that's ALL" re-
piled the iron man. I'VE hadn't been
thinking of dividend right away, but
we might as we'll begin today as any
time [ can vuch for Mr.. H. T. Rogers"
The assurance as to the Rogers att-
tude was enough, and the two magnates
repaired to the executive offices. Twenty
minutes later the street was startled by
the wholly unexpected announcement Of
the dividend.
Pennsylvania Stock.
Now comes strongly defined intima-
ton that Pennsylvania is to be put on a
7 per cent dividend basis, and that very
soon. This time the report bears evil
denee of reliability. "Pennsy" can well
afford to go that plane, and is sched-
uled for the raise according to the best
information. The Pennsylvania, like
many other important systems, is in sight
of the end of wholesale Improvements,
extensions. new equipment, costly term
inals and the general WORK of reconstruc-
tion and with the certainty of increased
earnings resulting from the stupendous
outlays, 1t Is facing the future comfort
| ably and serenely. Another eighteen
months should see the work practically
| completely and the railroads equipped
for the handling of the highest pressure
| traffic the country will be able to fur
nish for many years. In tnat. connection
| the uneasy thought arises where is new.
| business for iron and steel MILLS coming
from when this stupendous reconstruction
| is finished, or at least we'll off the hooks?"
Relaxation in that quarter will not be
| ,lnexnected Indeed something of the
sort is looked for,( although Mr. Morgan
| and other giants of the financial and In
dustrial work resolutely shut their eyes
| to the possibility of serious setpacks. In
no community is hope for the future OF
the iron and steel industry brighter than
right in Pittsburg, where every man,
| woman and child Is expert on the sub
ject In no other city is there heavier
per capita investment in steel shares
than in that same Pittsburg. Critics say
| that Pittsburg sentiment will be unsafe
| to allow too far because of a lack of
perspective; that local feeling is too apt
to be based on local conditions without
proper relationship to the rest of the
| country.
United States steel.
| Mr.. Andrew Carnegie still owns $240,
100000 of the underlying bonds of the
United States Steel corporation. The
| bonds repose in the vaults of J. p. Nor
gan &. Co.. who mail him a check every
month for 100000, interest on this par
ticular batch of securities at the rate of
| 5 per cent
| This announcement will be the first
| knowledge outside of select few of the
exact amount Of Mr.. Carnegie's holdings
| He has a large income from other sources
besides the s12, 600 steel trust inflow
probably not less than $4,000 900 annually,
! from which it would appear that the lit
| tie giant of the iron world is in no i'm
mediate danger of going over the hill
| to the poor house. The Morgan banking
| house pays out every year approximately
100000, 900 in the income on properties
| for which it is fiscal agent, manager or
trustee, this vast sum going into the
nockets of Investors. The disbursements