Evening star., 1907-08-06
BULLS AND BEARS
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, August 6.-While in inn
portant financial and railroad circles it is
not believed that the parent Standard Oil
Company or the subsidiary company oper-
ating in the state of Indiana will be COM
PEELED to pay the full amount OF the fine
| imposed last Saturday by Judge Lands. it
may be taken as fact that the action of
| the court is regarded of great Importance
and no little significance. 1t is freely ad-
mitted that this action will not only be fol-
lowed by similar actions along the same
line by federal authorities against corpora
tions and individuals, but also that 1t will
lead to further activity on the part OF am
bilious state authorities. man who was
long prominent figure in political life at
Washington, and who had unusually close
relations with large corporate interests, re-
Gently Ekened the position OF corporations
and those responsible for their direction to
a patient suffering from a severe attack
of typhoid fever. He remarked that, as in
the case of that particular afflictton, the
period of convalescence would be long and
the patient subject to frequent relapSes.
Until recently some optimistic persons had
persuaded themselves into the belief that
the period of convalescence had nearly
ended and that no more relapses in the
way of fresh attacks upon corporations
need be expected.
Those who are watching the whole sit
uation closely believe that for some weeks
to come corporate interests will be COM
PEELED to pass through one of the most
disturbing periods to which they have
been subjected since federal and state
authorities began their aggressive policy
against large aggregatons Of capital.
Important banking interests believe that
not only will those responsible for the
direction of the large railroad and in
duStrial corporations be greatly disheart-
ened by recent developments, and those
expected in the near future. but also that
the small investors, both in this country
and in Europe, will lose still more con-
fdence In the earning power and security
of the stocks and bonds of our railroads
and industrial corporations. An impor-
tant legislative official of one Of the larg-
est railroad systems In the United States,
in discussing the fine imposed upon the
standard Oil Company and the action
taken by the authorities in North Caro-
lima lima and Alabama against the Southern
hallway Company, said that, although
he Is always inclined to be optimistic,
he could not see much of a hopeful char
acter IN the situation at the moment,
except with respect to the agricultural
interests of the country
One of the most hopeful features in
every period of great depression for
American securities has been the fact
that European investors have always ap-
pear"d as buyers when the prices of our
stocks and bonds Reached abnormally low
levels. Those who are in close tough
with important f1nanciers in London, Ber-
lin and Paris indicate that never before
mas there been so great uncertainty in
the minds of European investors with re-
spect to the future Of our leading secur-
ties as exists at the present time. They
report that instead of being inclined to
become investors in our stocks and bonds
Europeans are disposed to sell them on
every advance. These would-be investors
point out that even important American
interests are wholly unable to predict
definitely the outcome Of the present dis
tnroed state of corporate affairs On this
side, and, consequently, that they, who
are not in a position to get as good in
formation or form correct an idea as
our leading interests, are very much in
the dark.