Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-08-11
Financial News Letter
BY W. @. NICHOLAS.

BY W. @. NICHOLAS.
Special Correspondence Of The Star.
NEW YORK, August 10. 1907.
The market manipulation for a rise. I'M
dertaken several weeks ago and continued
for nearly a month, not only did not at
tract the public, but at the finish insiders
found themselves with more stocks than
| when they began. Every time they tried
to unload prices gave way and the big fell
/ lows who were engineering the game
finally gave up in disgust The severe de-
cline which has taken place since was very
| largely the result OF liquidation by the
same interests that had been bulling- the
market as a preliminary to distribution.
The decline was sharper than the rise
and left the general average Of prices
lower than when the artificial stimulus was
applied. The interests which were respon-
sib,e for the advance were in control OF
many Of the leading banks and trust COM
panies Of New York, and as a part Of the
game they made call money easy occasion
ally letting the rate down to 2 per cent and
under. The play was foredoomed to fail
ure however, for the public has been edu-
Gated to keep out Of obviously manipulated
stocks. There has never been time in
| the history of Wall street when outside
investors were so thoroughly informed as
to what Is going on in Wall street and as
" TIE motives influencing uuCtudtiOilS
From present indications the big people
will go into the season of tight money car
rying their own load of stocks. The pubic
has given ample notice that it will not help
lug the burden through the fall and winter
months. Possibly. rather than undergo
the sweat the big ones will go ahead
throwing their securities overheard at
whatever prices they will bring II this
should prove to be the case, lower prices
than have yet been reached may be ex-
pected soon. The bottom levels of last
2Iarch may yet look high. The banks and
trust companies are already preparing for
arduous times. They expect a western
and southern demand this year, even larger
than usual, in spite Of the confident claims
of country bankers that they will be able
to market the crops. The truth is interior
banks. west and south Of the Alleghenes.
are loaned up closer than usual and will
begin making early drafts on their reserves
in New York and other eastern cities
either that or eastern and corporation
paper now carried in the west will be
dumped back on the New York institutions.
In all probab ility both conditions will pre-
vail. The time money market is continual
prospect of gold shipments than was the
case two three weeks ago. the danger Of
foreign call upon our stores of yellow
metal Is not over.
For the first time Mr.. H. H. Rogers. the
iron nerved and lion hearted leader of the
Standard Oil forces. Is threatened with a
breakdown. He has been carrying a ire
mendous load for years and with advancing
age his burdens and responsibilities in
creased rather than decreased In the car
rying out OF his colossal enterprises he
found himself uncomfortably spread out
and for months has been an actual borrow
er of money. There Is good reason to be-
lieve that a very considerable share of the
extensive liquidation which has bsen going
on for the last ten days has been for &C.
count of Mr.. Rogers and his associates.
After the hasty return of Mr.. Prick this
selling proceeded in increased volume. The
sleuths of the stock exchange, who are q
pretty wise lot have been saying that Mr..
Frick Mr. Rogers and William Rockefeller
| have been getting out from under. not only
withdrawing support from their own spe-
cialties. but dumping their securities re
| CARELESS" The sharp decline in St. Paul.
| Amalgamated, Shelters. Reading, Union
| Pacific and other stocks with which these
| men have been intimately identified is cited
| in proof OF the correctness OF the street
conclusion. In some quarters the gossip
goes so far as to credit the Standard Oil
multi millonaires and their friends with a
purpose to convert their securities into
money with all possible speed and retire
! from further active direction Of corporation
affairs. Inasmuch this group of men
owns millions Of shares of stock. the carry
| ing out of any such plan would spell ruin
| in Wall street. The plain truth Is it would
| be next to an impossibility for these men to
| get out of their securities in any reasonably
| brief period Of time. Buyers could not be
| found for their shares in the present condi-
ton of general dfstrust
X
| 1t is within the range Of possibilities,
| however, that the Standard Oil element may
| be nursing a scheme of revenge upon a
! country which they think is treating it very
| badly. This could very easily be worked
| out. Even under adverse conditions hum
dreds Of millions Of dollars might be realized
| by these people from the sale of securities
and the money locked up The object les
| son which any such mercilcSS action would
| teach would be one ne>.r to be forgotten.
| It would wreck half the business interests
| of the country: yet 1t Is well within the
power Of this handful of nien to accomplish
| just that result. and as they are in a gen.
uine fury these days-mad clear through. as
the saying is-they might do that very
thing.
The belief is held in Wall street that the
| house of ]. P. Morgan is stronger in cash
| than ever before In it's history and that
| the head of that giant institution is still
| very far from being optimistic On the stock
market or the International business sit
| uation. He was among the first to foresee
| the turn in the great tide of trade and to
put himself In shape to meet any emergency
| that might arise. The long decline in the
| stock market which began last fall and
| eliminated In March of this year was
| marked from start to finish by continuous
selling of Morgan stocks. While this was
going on the Standard OIL party and the
Hartman Schiff party we're trying to sup
| port their specalties. thus reversing the
position of the factions lined up four
years ago. Then 1t was Mr.. Morgan who
| was spread out, and 1t was the Standard
| Oil. aided and abetted by the Kuhn. Loeb
| group. that was cunning for him. They
had the great banker backed up against
| the wall. Today he is on easy street and
! they are scratching gravel. That Mr.. Nor
gan is enjoying the play goes without say
| ing While his ancient enemies are strain
| ing every nerve to tide over he Is wallow
| ing in real enjoyment buying art treasures
| by the million dollars worth. That he Is
| the real principal in the $5.OOO.OOO art pur-
chase in Paris this week is believed to be
almost certain.
The weakness In copper and iron metal