New-York tribune., 1907-06-23
The Financial World.


| characteristics Brokerage offices are empty
Stock Exchange transactions are at q stano-
still. Efforts are made. some Of them hysteri-
I cal, occasionally to help along bear RAID; Due
such performances accomplish nothing This
week we have had two or three japanese wars
a Reading dividend rhystery and daily bulletins
of new litigation aimed at the Union Pacihc-eli
the stuff accomplishing nothing. Two or three
! frealxish Operators are hiring lawyers 10
undertake lawsuit campaigns: and these same
performers are more or less committed on the
short side of the stock market. But the dol
drum drift of quotations shows how insignificant
is the speculative following which the tacticians
/ command. 1t used 10 be different when the
United States Steel Corporation and Northern
Pacific and the Sugar Trust were under fre-oy
/ these same representatives Of reform finance
/ At present what actually summarizes the Wan
Street situation is in a statement made yester-
CAV by the head of an important banking
house.
! Most OF us have gone TO sleep; and few OF
US want to be walked up
! That there is some retrenchment in business
shows clearly in many ways. We have. how
ever none OF that disturbance which was SO
| much predicted a couple of months aso-what-
soever contraction Is evidenced representing
! conservatism which would seem to be amply
| justified by circumstances operating In special
| quarters Copper consumers, for example, have
| been naturally restricting purchases and con-
| tract commitments-in view OF the fact that In
! terests which financially seem to be OF the frsr
| Importance, and whose representatives are
! directly identified with the control OF the Copper
! Trust. are distributing cooling potions-
! In some conspicuous places it is bulletined that
| Thomas w. Lawson has returned from Europe
I 10 become the representative OF the Standard
/ Oil-the Copper Trust-in the security market
/ This sort of information does not come from
/ Lawson sources. Its apparent authority claims
/ Standard Oil relationships. In all probability
/ the representation Is false II seems 70 be
| foolish 1t IS well enough for the free and easy
critics Of 7. W. Lawson to accuse him OF multi
| tudinous wickednesses: but nobody far has
! been able to disclose him stupid.
There are indications that they who are most
! powerful in the Copper Trusts affairs sold the
stock by wholesale (and even at recent declines)
/ In order, perhaps, TO arnass cash funds where
| with TO fOrtify a relatively weaker position in
/ Union Pacific. st. Paul and New Haven COM
/ mitments. The New Haven security issuing
| campaign refuses, somehow, TO work smoothly
| In contrast with copper trade snarls Cor COP
per trade uncertainties If euphony may be
| required) there inspiriting records in the
| iron and steel situation Despite the fact that
| crowding prophets have been foreteIIng disaster
for the United States Steel Corporation. there Is
| daily registration of actual Improvement there
| 1t is not impossible that within the next year
may important independent properties COM
| binng and entering upon campaigns which IL
! Wall Street will be denominated as warliks
| against the Steel Trust; but Mr.. Gates and
| Mr.. Schwab (should they bring together their
| Republic. Bethlehem and Tennessee properties)
viii occupy position exceptional to the extent
! that they will not be new intruders in the Held
/ Will not have 10 attempt TO make headway at
| the expense OF the premier corporation. 1t may
| be that in the financial world there Will be even
| general exploitations OF the theory that the
| Southern and Western properties will be willing
| to consent TO absorption: but even among those
| who are most conservative in forecasting Amer
| lean steel trade development there will be no
| acceptance OF any calculation that taking over
I the control OF lusty independents Will represent
/ for the United States Steel Corporation any de-
| parture from progressive policy. The Gates
| SChwab properties independent. yet, OF each
| Other) beyond the experimental stage; they
! pay their way; they have made good; they are
| eXpanding-au OF them.
! 1t is but the tittle-tatte Of Wall Streets silly
season that affects to see any danger in the iron
| and steel corporation quarter
Still another contrast commands the attention
of even the most cursory students OF the Stock
/ ENCnaUSe SlluullOn STOCK dLidLIS 4@dSS
| year. inspired by prevailing optimism out West.
many Wall Street brokers permitted themselves
| to become sponsors for Western gold. silver and
| copper properties. Nevada was having boom
And SO 1t came 10 pass that local firms (sorne OF
! them OF high credt were willing TO identify
| their names with mining stock issuing PROPOSE
! tions. Most OF these introdUctions were
| given cOnspicuousness in the market upon the
/ Curb. were manipulated there after all the ira
| ditionaI fashions. boomers being hired 10 cry
| the wares--with the result that shares OF q
| par value Of tens Of millions OF dollars y ere
| distributed" Stocks brought out at a dollar
| or two per share We're jumped up arbitrarily 20
| three or four times that figure, and as thus
J made 10 look attractive were hUcxstered abun-
| dainty. But unable to stand tests. those same
| stocks so begging below their original low
price, and ii is not nspiriting 10 hear that there
| is in contemplation official inquiry into what
| in these particular premises some Stock Ex-
| change brokers last year Gas unIOaders) were
| willing to do.
There is 10 be Smelling Trust investigation
| by the United States Bureau Of Corporations.
/ Wall Street had a new shudder yesterday at
| the announcement that ST Louis & San Fran
| cisco is to ask authority OF its stockholders 70
| per cent. general lien bonds. \ little investga-
souri, laws there can be no bond issue unless
| there is equivalent stock issue The S4uV'-
| 100000 stock is merely a legal formality Aha
| of the bond ISSUE but little more than one-lal
| is to be marketed. This reduces the tranSacuo4-
! so far as the money market Is concerned, 20