Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-25
Financial News Letter
By ". q. NICHOLS.


NEW YORK. February "a, lyU6
POOL manipulation has been much in evil
dence this week. ciicque stocks were put
to the front and given market leadership.
Although there was reaction later under
pressure, prices were marked up the f1rst
of the week In direct conflict with news
and influences OF pronounced bearish tenor.
This was conspicuously the case with Read
ing, and to lesser degree with other coal
roads, which would naturally have been
adversely erected by the Supreme Court
decision and by threatened Congress in
yestigatfons- The excuse given tor pool
activity IN these stocks was that a taclt
compromise agreement had been reached
between the coal operators and the miners,
under the terms OF which peace would be
assured Tor another two years. Industrial
stocks were also given a whirl, and then
followed the standard railroad stocks and
lastly some of the Iow-priced issues. Alto
gether, the market had most unnatural as
pect and seemed highly artificial. The Hill
group was doomed energettcaliy, on the
strength of the deal for turning over Mr.
Hills ore properties to the steel trust on
royalty basis. No cash is involved IN
this transaction. but under its operations
the trust Is to come into possession OF some
hundreds OF millions of dollars worth OF
cheap iron, and Mr. Hills railroads will de-
rive direct compensation and largely IN
crease its tonnage. Inasmuch as 1t is high
ever sell any part Of their holdings, the
floating supply Of his stocks is very light,
and 1t Is an easy matter to mark up quota
tons to seemingly absurd heights. Everybody
who has bought into the Hill stocks ana
stuck by them has made money. That has
given him great Following. which Is loyal
almost to the point OF fanaticism Ihefe
is no length to which they Will not go IN
blind obedience to what they believe mas
the proper inspiration. This is a remark
able testimonial and Endorsement. anu
places Mr. Hill in a position unique in the
annals Of Wall street. The devoted orators
and historians enlisted under the Hill flag
are trying to make it appear that thelr
hero has been INDUCING himself in the
pleasure of colossal self-sacrifice in turn
ing over his lands to the steel trust
for the benefit OF his railroads-ore lands
that cost him originally less than $oo0OJo
and which, according to actual reckoning,
possess value of several hundred mil
lions under the terms OF the new deal,
official details OF which are looked for with
curiosity. 1t might be mentioned In this
connection that Mr.. Hill Is turning ever
to the steel trust only a part of his ore
lands. The area which he retained Will be
in the position OF vacant city square
which is about to be surrounded on all
sides by skyscrapers, the construction OIL
which Will multiply his land Thousand
fold in value. 1t will be seen, therefore.
that Mr.. HIS wise generosity In the In
terest of his railroads contains clause
comforting a gift of fabulous value to MS
trayed into the commission OF an act OF
seeming prodigality 1t Is sometimes We'll
to take little peep behind the curtain.
Any jury will acquit Mr. Hill of charge
Of needless charity.
The street Is being morphined in the mat
ter of congressional investigation into do
ings of coal roads and other transportation
companies playing the dual role of carrier
and producer. In this case. however, the
anesthetic does not impart the desired re-
suit, for there is a strongly. defined feeling
that if Congress is really In earnest there
is trouble in store for some of the big COM
bfnes alleged to exist in fragrant violation
of the laws. 1t is of common knowledge
that there is already stored in the Depart
ment of Justice In Washington proof noun
tain high of the existence of an anthracite
coal trust. Congress has only to call upon
the department for this evidence to make
at least one invincible case. Wall street
cannot pretend to long remain in ignorance
indifference the latest outbreak of con-
gressional curiosity on the question of COM
bnations in restraint OF trade.
The financial interests behind the rail-
roads are easier in their minds, yet not en-
tirely satisfied with the Washington outlook
touching rate regulation The commonly
accepted theory that Congress will do moth
ing to really disturb the status Is not held
SO universally by the big people might
be supposed from hearing the inspired ex-
preston on the subject vigorously con-
Quoted investigation along lines indicated
by latest Washington advices might set In
motion forces which cannot be controlled, |
as the case with the life insurance In
curry. Washington, 1t will be perceived, Is
likely to be factor in the market for sew
eral months to come. 1t will be the part
of prudence for investors and spectators to
keep an eye on the nations capital and not
be lulled into sense of overconfidence or
oversecurity by reiterated reports that there
will be nothing doing in that quarter.
NpW DR. PSTDENT MpD