Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-07
Financial News Letter
BY W. G.. NICHOLAS.


NEW YORK, January 6.-Prudent and
wary followers of stock market specula-
ton could WISH perhaps, that eXpecta-
lions of a big boom in prices during Janu-
airy We're little less general The splen-
did enthusiasm with which the bull forces
carried their market over the end of the
year, making stocks like Steel preferred
and Union Pacific sell at new high rec
ord prices. and others like Steel common
and Amalgamated Copper at the highest
prices of three years, served to strengthen
belief in q broad continuation of the cam
paign for higher prices. The signs that
commonly preCede wild public specula-
ton, indeed are very much in evidence,
and it would be surprising if the bull
market should collapse just when condi-
tons seem so to favor an extensive dfStrl-
button of stocks at higher prices, but of
all the hackneyed proverbs on Wall street
the one most worth repeating is that it is
always the unexpected that happens in
the stock market. The chief flaw in the
outlook, in fact, is the danger that lies in
OVer-COnfidence.
The demonstration In the last week of
the old year, already alluded to, was
made with call money lending at 40 to 125
per cent rates, but owing to the over
whelming confidence of the large holders
of stocks security values actually adj
vanced, and the big people, so-called, were
obviously more inclined to increase their
three times before in the history of Wall
street has the stock market been so In
different to the limitations of the money
market as since the beginning Of last au-
tumn and the result was that the end of
the year found the banking position of
New York weaker than it had been at any
corresponding period in the last decade.
Amalgamated Copper.
wear ago Amalgamated Copper was the
target of the most unique bear campaign
that has ever been waged in Wall street.
It was the Lawson campaign. The man
fought with new weapons, and his initial
success was bewildering. There were many
clear-thinklng people who felt that the
men at % Broadway being responsible for
Amalgamated Copper, could i'll afford 10
suffer their stock TO be raided and damned
around In the market Their seeming In
difference created harmful Impressions out
side of the financial community and great
ly strengthened the prestige Of the Boston
leader. 1t is reported that MIR. Henry H.
Rogers, when upbraided by his personal
friends for suffering Lawson's attacks to go
unchallenged, retorted In effect: II will not
reply to Lawson except through the stock
market, and in time l will put Amalga-
mated Copper TO 125, where every holder
in the land may sell out to me IL he wishes
to do so" The stock was selling then be-
between 60 and 30. Lawson had broken it
down from above so, and it seemed mere
childs play for him to smother 1t every
time 1t raised its head
SIX months or more ago financial interests
associated with the so-called Standard OIL
crowd openly committed themselves to the
prediction that Amalga mated Copper would
cross par before the end of the year 1905.
The prediction was slow In being redeemed
but once the insiders took hold of the
stock in earnest its advance was Irresistible
In the last stock exchange session of the
year the stock sold above Ill. 1t Is sup
posed to be on It's way to 125 Its wonder
TlIt in ta bo
notable incident of the last three months of
the old year in the stock market. 1t served
more than any other one thing to discredit
the Boston bear leadership.
Lawson Discredited.
The rise In "coppers'' has appealed
strongly to the public The tale of "Fren-
zed Finance" turned chiefly upon cop
pers," and the author of the Grimes of
Amalgamated" has been discredited in the
last six months in every prediction that he
has made concerning either the metal mar
ket or the stock market. For six or eight
months he has been predicting a crash IN
the metal and panic in the stock market,
and both metal and stocks have steadily
advanced. Now people from all over the
country are inquirlng If Lawson is 'aIl in
If he has really gone broke, etc. Their Curl
osty about him is Unsuitable. Lawson him
self has sought to increase 1t. He has ad-
vertised alleged losses through bearish OPP
eIdllOHS III metal ana SHOCKS running into
millions of dollars, and has also given wide
publicity to the fact that he recently mort
gagged personal real estate in the city of
Boston.
1t is interesting to hear from Boston peo-
pie who know Lawson that In their opin-
ion he is very far from being broke. Some
of them even assert that he has been win
ming instead of losing. He is without any
doubt the best-informed speculative opera
tor in 'coppers in the whole country He
not only knows more about the speculative
side of coppers than any other one man.
but he knows a good deal about copper
mining. since he has copper properties of
his own.
Union Pacific.
There Is no longer any doubt that the
Hill-Morgan interests have bought through
the open market very large interest in the
Union Pacific railroad. Through the Union
Pacifie's participation In the Northern Sc
curities affair II became a large holder of
Great Northern and Northern Pacific stocks
both Hill securitles-end Mr.. Hill discov-
cred that he could not work out his plans
respecting those properties without enrich
Ing the Union Pacific treasury. The Union
Pacific would be benefited by anything that
he might do to benefit his own stockhold-
ers. These benefits already have amounted
TO many millions OF dollars and will amount
to many millions more, and in order to have
some interest In the profits that were being
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