Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-09
Financial News Letter
By W. G. NICHOLAS.

NEW YORK. September S-Flagrant
manipulation continues to be the conspicu-
Gus feature OF the stock market, accom-
panied by distribution Of shares throughout
the general list. Speculation in the half
dozen favorites which have held the center
of the stage for the hast six weeks was
carried to spectacular excess and under
cover Of the rigging process insiders
have succeeded in unloading quantities Of
shares. Impressed with the ease with which
the trick was turned. the market leaders
have gone into other things, hoping to en-
gineer fresh deals before the turn comes
compelling a change of front The public
takes fright quickly and IL remarkably
alert to unfavorable symptoms. Hence it
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. however. and the
big combinations continue In supreme COM
mand of the speculative situation. furry
in the money market was organized for eff
feet 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 COM
ing to the rescue he had to be satisfied OF
the presence Of real, legitimate need for
the available treasury funds. He has a
prejudice against lending government as
sistance for the mere encouragement Of
speculation. though apparently always
ready to lend friendly ear to the demands
Of the business community as represented
by the agricultural commercial and indus
trial classes His avowed policy Is to i'm
part to the money situation as much needed
elasticity as the law allows, and even to
go out Of his way in emergency to estab-
| fish precedents. His helping gold imports
is case in point. 1t Is fact, however,
that most important interests have made
their money arrangements to carry over the
Id of cd Il IL
rates will not hurt in influential quarters.
although the sentimental effect of sky
scraping figures may be temporarily bear
ish when the pinch comes. 1t could hardly
be otherwise.
-
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 pro-
found impression and the example will be
followed very generally, the most conserva-
tive directories evincing willingness to
adopt a more liberal treatment of stock
holders, amounting to almost reversal Of
form. Even Standard Oil, whose influence
has been steadily against prodiRaltty to
shareholders, seems ready to loosen up at
last 1t not only approved Of the Harri-
man departure, but Is yielding in other not
able directions. A case in point is the
dividend on steel common. which came as
a complete surprise. In that particular
instance 1t Is stated as a positive fact that
not even members Of the finance commit.
| tee OF the trust knew what was going to
be done until the vote was taken It ia
related that Mr.. Trick stopped on his way
to the meeting to pick up Mr.. MORAN He
found the great banker In q particularly
Igrouchy mood and was met with curt
refusal.
NO" said Mr.. Morgan, 81 viii not go to
the meeting today or to any other meeting
OF the directors or finance committee until
| dividend Is paid on the common stock
1t is an outrage that the stockholders
should be deprived Of participation in the
earnings of the corporation when its treas.
ury amply warrants the payment"
Come along, then, IL that's all" replied
the iron man. I'VE hadn't been thinking
OF dividend right away, but we might
as we'll begin today as any time. I can
vouch for Mr.. H. H. Rogers"
The assurance az to the Rogers attitude
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
X
Now comes q strongly defined intimation
that Pennsylvania Is to be put on Z Der
cent dividend basis. and that very soon.
This time the report bears evidence OF re-
liability. 'Pennsy" can well afford to 70
on that plane and is scheduled for the
| raise according to the best information
The Pennsylyania like MANY ofhAr frn-