Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-11-11
Financial News [ etter
BY w. G. NICHOLAS.

neve that Mr.. Hughes, the republican candi-
date for governor of New York. would do
less damage to vested interests than the
democratic candidate. Wall street now is
between the devil and the deep sea. The re-
publican party under the leadership of Mr..
Roosevelt is making an active campaign all
along the line against the trusts. The dem
ocraic party is just as anxious Mr..
Roosevelt to fight the trusts. The great is
sue in the New York state campaign was
the curling of corporate power. Both cam
didates for governor asserted that many
things were wrong in our body polite. Mr..
Hearst was more violent in his assertions
than Mr.. Hughes, and more radical in his
suggestion of remedies. AS a result the
financial community did not embrace either
candidate with open arms. The enormous
vote received by all the democratic candi-
dates except Mr.. Hearst in New York city
and the slump in the republican vote in
most of the upstate manufacturing towns
indicated to Wall street that ali these eX-
posures of graft in high places have stirred
up the people and made them uneasy.
Wall street, therefore, is looking forward
with much questioning TO the next presiden-
tial campaign and the effect it will have
on prices. Wall street expects that the next
democratic candidate for President, If it is
not Mr. Hearst, will be some other strong
Wall street has no great love for Mr..
Roosevelt. 1t took dislike to him when he
was governor of New York, and has dis
liked him more since he went to Washing
ton. Some of Mr. Roosevelt's radical oppo-
nents in Wall street said when he was
elected his war against the trusts would
seriously affect the country's prosperity.
Nothing of the kind, however, has happen
ed. During Mr.. Roosevet's administration
the country has been travelling along at top
notch commercial speed, and nearly all
branches of industry have made new rec
ords. Mr.. Roosevelts opponents say that
all this has been in spite of him, but the
evident unrest among the people and their
very plain desire to administer rebuke to
some of the powers in the financial world
who have been amassing fortunes at rap
i'd rate in recent years has set the Wall
street community to specializing over what
is to be the outcome of the next presidential
contest. The tariff issue was very concrete
One party favored high t.riff, the other
party low tariff. The trust issue is not so
concrete. Wall street has some idea of Mr.
Roosevelt's conception Of what the govern
ment should do to curb the trusts, but it
does not know how far a democratic admin.
istration might go in this work.
-.
The Presidents announced campaign
against the Standard Oil Company does not
disturb the financial community. Wall
street was all stirred up over the Northern
Securities fight when it was on, and many
bitter things were said against Mr. Roose-
welt by Mr.. Hill and Mr.. Hartman and
their friends, but while the Northern Sc
curities was dissolved the two railways in
volved, the Great Northern and Northern
Pacific, continue to do business at the old
stand A dissolution of the Northern Sc
curities Company did not AFFECT In one 1ota
the business handled by these roads or the
profits resulting from this business, and
Wall street has the same opinion about any
campaign the government might undertake
against the parent Standard OH Company.
The subsidiary companies would go on re-
filming oil and selling their products under
different form of general control.
X
Just at the moment the money market is
the thing of most absorbing interest in
Wall street. Some who had hope that the
money market would be easier toward the
end of the year now believe that the period
of tight money will extend longer. The
great prosperity of the country is more re-
sponsible than the speculation in stocks for
the dearness of money All over the coun-
try people engaged in business are spread
ing out and looking for more capital. The
real estate boom in various parts of the
country and the increased investment in
mining ventures in Nevada, Cobalt, Mexico,
and mining camps all over the continent
also calf for more capital. further in
crease in the Bank of England rate would
cause 20 surprise here. Bankers are look
ing for further relief from the Treasury De-
partment to tide US over until after the
turn of the year.
X *
The market situation is that the big men
have the stocks. to use the hackneyed
phrase, and that they expect to make. a
market at a higher level on which to dis
tribute some of their holdings. The big
men behind the market have by no means
exhausted the bull ammunition. Mr.. Harri-
man still has several good things up his
sleeve One story is that now that he has
taken absolute control of the Illinois Cen
trail he is going to lease 1t to the Union Pa
cific with an per cent guarantee. This is
more or less an old story which has been
hanging fire for year or two. Whether the
stockholders of the Illinois Central, who are
a pretty hard-headed lot of people, would
consent to accept an per cent guarantee
is a question. Illinois Central Is a wonder
fully valuable railroad, and many of the
stockholders think that some day its stock
will be worth much more than any per
cent guaranteed stock ever could be. Their
attitude is much the same as that of Hetty
Green, who as one of the largest holders of
Louisville and Nashville stock is always
opposed to any scheme to turn this stock
over on a guaranteed dividend basis. One
very large stockholder, Mr. Stuyvesant
Fish, who has just been OuSted from the
presidency by Mr.. Hartman, will probablys
oppose any scheme of Mr.. Harrimau's to
change the status of the stock.
4
Much bull ammunition remains in the
Great Northern Northern Pacific situation
Although Mr.. Hill announced little while
ago that the Great Northern ore lands had
been leased to the steel corporation, the
stockholders are yet to learn just how they
come out of it. The stockholders. by the
way. are not worrying, for they know from
past experience that Mr.. Hill will give
them all that is coming to them. Mr.. Hill
has always treated his stockholders with
fairness and liberality. 1t is expected that
the benefit of the stockholders from the
lease of the ore lands will be in the form
of a script dividend Mr.. Hill is now
working on the plan. The Northern Pacific
stockholders are also looking for something
luscious out of Mr. Hills melon patch 1t
is to be recalled that the Burlington, which
was taken over by the Great Northern and
Northern Pacific at $500 share in the
face of much bitter criticism of this high
valuation is now earning so much money
that Mr.. Hill does not know what to do