New-York tribune., 1907-10-14
THE WEEK IN WALL STREET.

had been in progress since late in the previous
year. but at the emo of last week almost all
stocks stood at lower levels than previously in
1907, many OF them at new low record points for
q series OF years. and seemed destined to go
still lower That the reaction in business has
not been fully discounted seems probable from
the fact that it was the report from San Fran
cisco, subsequently denied by Mr.. Hartman.
that orders had been given for sweeping re-
trenchment on the Hartman system, involving
the discharge Of 10000 railroad employees which
caused the severe break in stocks on Saturday
But other causes then the expected slowing
down Of the business pace have been operative
in the latest of the three sharp market slumps
of the current year One has been the heavy
selling of American securities by Europe, due in
part to money market stringency there. but in
part also to increasing distrust Of the stability
if investment conditions in this country, the
popular antagonism 10 corporations in many
states exemplfed by the anti-railroad legisla-
tion being regarded by foreign investors with
anything but equanimity. Still another cause
which has operated both here and abroad has
been the unsettlement of confidence produced by
the series of disclosures in the Metropolitan in
vestigation-
The testimony of Anthony \. Brady as to
the sale by him 10 the late William c. Whit
ney of a street railway in this city which has
never yet been built. the acquisition of the
property by the Metropolitan Securities Com
pany at a price nearly four times its cost to
Mr.. Whitney and the distribution of the diff
ference among the latter and some Of his asso-
ciates will probably not be followed by any sue
cessfuI effort TO compel restitution of the enor
nous profits made on this deal as neither Mr..
Whitney nor any Of his fellow beneiciaries We're
directors of the securities company at the time,
and therefore were technically not occupy
ing z relation OF trust TO 1t. The surviv
ing Philadelphia capitalists who received their
shares Of the profits have explained that
the sums received by them from Mr.. Whitney
through Mr. Brady, represented merely the
repayment Of money lent by them to Mr.
Whitney, but despite their explanation the stock
of the United Gas Improvement Company. Of
Philadelphia, in which they are the dominant
interests, has fallen sharply in the last week.
Such disclosures as these and the testimony Of
Mr.. QUigg. showing the lavish employment Of
a great corporations funds in the "acceleration'
to use a felicitous expression which has been
welcomed to a permanent place in Wall Streets
vOcabuary-of public sentiment for the further
ance of the corporations ends. have not only
given rise TO the suspicion that even more un-
justified use of the money of the stockholders Of
this corporation may be brought to light by Mr.
IYins, hut also have caused the stockholders Of
many other corporations, who have not yet for
gotten the developments in the insurance in
Vesrgation to wonder If the men in control OF
the companies in which their money is invested
have been faithful stewards. Many abuses We're
swept away result of the probing of the
affairs of the great insurance companies, and it
is probable that the inquiry into the Metropoli-
tans financing methods will work future good
to investors everywhere, through providing an
object lesson to the dominant interests in cor
porations OF the peril to themselves OF using
their actual or virtual trust for reprehensible
ends
Little attention was paid last week by the
stock market to the government crop report.
which showed some impairment in condition Of
corn and wheat as compared with the Septem-
Der report, but nevertheless indicated harVests
Of around normal size, which will add tremen-
dously to the wealth Of the country. Prices OF
cereals have advanced with great rapidity, but
are not sufficiently high to stop the exports to
Europe, where, fortunately for the United
States, serious shortages exist this year. Busl-
ness is reported to be still active throughout
the country, and the great steel manufacturing
companies working their plants 70 capacity
while the railroads need their full equipment TO
handle the traffic offered them. Everywhere
however, II is recognized that a recession in
business is making gradual progress, which will
not run to disastrous lengths unless confidence
shall be destroyed. Money is still tight the
world over, but conditions in Europe are re-
ported from the best Informed sources to be
gradually improving, the remedy there being
the same that which is being applied here
a slowing down of business activity. The price
of copper continues to decline, in London as
well as in New York, and the bottom seems now
nearly reached, although decided advance IN
the price Of the metal can be looked for until
increasing ease in the money markets shall make
It feasible to resume the interrupted process Of
developing the many projected plans for i'm
provements and new enterprises involving the
use Of electricity.
Foreign exchange rates in the week just ended
have advanced 10 figures suggesting the posi-
blity Of the beginning of an export movement
al 1ph nal l1x at lie ffa
ton Of the metal, rather than its expectation
would be expected. The Bank Of France Of
fered for day 10 allow interest In transit on
exports. its desire to obtain gold being supposed
to be related to the Egyptian drain; but that
desire proved not urgent, as the "facilitation"
offer was speedily withdrawn. There has been
an active demand for remittance, due to the
necessity Of paying for the mass of securities
turned back upon the United States by foreign
investors and to the need of meeting maturing
obligations, among them those on account of
large amount Of New York City warrants. Cot
ton bills, which usually sent into the mar
ket in large volume at this time, in abnor-
mally small supply, as the planters still gen
orally holding their cotton in the expectation OF
higher prices. In September the exports of cot
Ton only 196,3S6,11S pounds, against 265,-
1O5.S27 in the same month last year. The staple
cannot much longer be held back, however and
with the offering of cotton bills in heavy vol
ume the danger of gold exports this fall viii
disappear.
Money rates are high, but not unusually high
for this period. The Secretary of the Treasury
continues placing government funds in deposit
tary institutions in various parts of the country
and this policy has lessened to some extent the
demands the New York banks for money for
crop moving purposes. The extensive liouida-
tion Of the last week in the stock market mas Of
course improved the position of the loca! banks
the calling of loans by which, IS precautionary
measure, in view of the lowness OF the surplus
reserve. one OF the causes OF the break in
prices. The surplus now stands et well over.
81 ,020 600.