Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-05-13
Financial News Letter
BY ". G. NICHOLAS.

Special Dispatch to The Star
NEW YORK, May Publish specu-
lators and the investor class have Mr.. H.
H. Rogers and his Standard Oil associates
to thank for stopping the decline in the
stock market and taking a powerful initi-
alive for the advance. AS everybody Will
recall the rally began on Friday, May 4,
the day the Presidents message on Stand
ard Oil iniquities was sent to Congress and
published broadcast through the news
papers. Usually the people at 26 Broadway
have first knowledge Of what is going on at
Washington, but on this occasion they had
failed to get hold of an advance copy Of
the message. although 1t was in New York
ION release" for quite little while before
its formal issuance. 1t was not until Thurs
day about noon. that the Standard Oil
magnates had q look at a copy of the mes
sage. Mr.. Rogers was mad clear through
when he read the President criticisms Of
Standard Oil and Commissioner Garfleld's
standardization of the facts in his posses
sion. For two or three days the bears had
been attacking the market viciously on adj
vance information from Washington. They
were moved to this course by q belief that
the message would create an overwhelming
hostile sentiment against Standard Oh,
which would take the form of slump In
prices When Mr.. Rogers completed the
perusal of the Washington documents he
grimly remarked that the bears who were
expecting to make a profit selling stocks on
that message were going to get the surprise
of their lives, adding: 1T will be many
long day before they see profit on sales
they make around these prices"
The Standard Oil has at last established
publicity department under the direction
of a 500 GOO a year director, a,/fact which
has been heralded broadcast and which ere
ated little disturbance. This departure
from an established custom comes under
the head of a novelty. 1t Is very doubtful,
however, whether the move will accomplish
the purpose intended, for the reason that
from now on everything originating in the
publicity bureau will bear on Its face the
brand of interestedness and will invite sus-
pcon and distrust. The Standard Oil lost
a psychological time for helpful publicity
when 1t ignored a magazine invitation to
permit the publication of an authorized
statement Of Standard Oil as colossal in
dustrial enterprise, such statement to be
truthful history of the upbuildng Of the
business and an exhibit of what it actually
stands for as monument to the genius in
dustry and courage of small group Of
American citizens associated for CONNER
ciaI and industrial conquest. Coming from
a disintereSted source and at the phsycho-
logical moment given circulation the story
might have gone far toward the creation of
a friendly sentiment, but now anything of
the sort appearing in the newspapers or
elsewhere would fall short of the wished
for effect. 1t would look like a specious
defense and piece of special pleading.
*
Wall street will be heartily glad when
Congress takes final action on the rate bill.
The discussion has dragged along tiresome-
~ and has worn on the nerves of the sub
stantial interests concerned in the stock
market effect OF hostile legislation. The
prevailing belief is that the worst has been
discounted and that whatever changes In
railroad methods will be made necessary
under the new law will be beneficial to
stockholders and to railroad property in
general. Statutary admission that the courts
have the right of revew-a right conferred
by the Constitution. which could not be
taken away by Congress, will have dis
tinctly soothing effect and will go a long
way TO restore confidence In investments.
A deep-seated fear that legislation and po-
litical action might take the form of vir-
tual confiscation has given place to bet
ter feeling everywhere, and 1t may find re-
Election In an uplifting of prices of securi-
ties. settlement of the question is given
as one of the reasons for the better tone in
financial circles.