The Birmingham age-herald., 1907-06-16
TIE STANDARD OIL
 ADVISED BUYING Failure of MiIIiken Bros. Changes Situation THE EVILS OF PROSPERITY Governor Hughes Veto of Two-cent Fare Bill Has Good Effect on
 Wall Street Operations.
 GoldfieId.
BY w. c. NICHOLAS.

New York, June 15-The Standard Oil crowd, at the beginning of the week was advising it's friends to buy stocks especially Union Pacific, New York Cen tral and Brooklyn Rapid Transit This ! advice didn't turn out very we'll The fail ure of the structural iron firm of Mill ] liken Bros, while not in itself an event of such great importance. threw a cold I chill over the market. It brought home to Wall street very vividly lesson that has been preached during the past few months concerning some of the evils of prosperity. The trouble with the Millikens has been that they have had too much work and not enough capital. When their business expanded so that more capital was needed they tried to raise it by floating bonds. Some of the bonds were sold, but more capital was needed Then they borrowed money. They had to pay high rates for the use of money 1 When they tried to renew their loans recently the banks could not accommo- date them. They had to fail.
 Other business enterprises in this coun- try are in much the same condition. They are doing big business, but they are short on capital and they find that capital cannot be raised so easily now as 1t could a year or two ago. Not only does money cost more, but those who have money to put out whether in stocks, bonds or notes, are disturbed by the general anti-corporation campaign throughout the country, and are afraid to put out their money except in gilt edged ventures. Not only in this coun- try but in Europe one fact seems to stand out very plainly, and this is that the mechanism of business is not equal to it's volume. There must be a read Justment. The readiustment will probably come in the curtailment of the volume of business.
 The most reassuring thing that has happened in the financial world this week is Governor Hughes veto of the New York state 2-cent fare bill The veto re- calls Governor Cleveand's veto of a sim liar bill some years ago aimed at the New York Elevated railroad Wall street is pleased to discover that Governor Hughes is a man with a will of hls own, who Is not swayed by popular clamor, and that he stands for real fair play for vested interests. At a time when state legislatures all over the country are pass ing anti-railroad bills, 1t Is significant that the governor of New York state, de- spite his more or less advanced ideas concerning government control of corpor- ations, is thoroughly opposed to indis- criminate attacks on property rights. m tbis connection 1t may be well to note that Mir Roosevelt has made vari- ous attempts to form a political alliance with Governor Hughes, but the governor has intimated very strongly to those who
 
 that he doesn't mix into national politics. Governor Hughes is not Roosevelt man, and some political observers have an idea that he Is not losing sight of the fact that Albany in the past has been a very convenient halfway station on the road to Washington. Governor Hughes veto of the 2-cent fare bill has won many supporters for him in Wall street, and there is an evident tendency to call him a second Cleveland.
 It isn't alone the Wall street bankers and speculators who are worried by MT. Rooseyelt's strenuous investigations of the corporations. During the past few { days the President has been called upon to listen to some very plain talk by men of importance in the country's business affairs who journeyed to Washington for the satisfaction of personally telling him
 
 methods. Never since he has occupied the executive chair has he heard such free expression of opinion.
 It is no violation of confidence to say that he was nightly stirred. He was told bluntly that his policy of antagonism towards corporations had shaken conf dence and filled capital at home and abroad with dstrust. It was in vain he urged that he was not responsible for ha nf oradif oOr1pIafnad of xxhirb he held was due to the evil practices financiers. It was pointed out that tn his efforts to get at these people he was missing the culprits and hurting the entire country. and that if he did not speedily stop sloshing around disaster would follow. Some of the visitors were large merchants. They came from the big cities of the country.
 Fortunes do not grow wild on trees In Wall street. The fate of bond syndicates shows this Some of the younger bond houses are feeling pretty blue They came into Wall street when 1t was like running a mint of your own to be let into underwriting syndicates. Every un- derwriting was a sure thing, and the privilege of being admitted into syndi- cates was eagerly sought after. But now there is another story to tell. Under writing syndicates are being wound up at a loss, and the members are forced to take up their bonds and either put them away or else sell them at loss. One young house made sS0.000 last year, and this year hasn't made cent The Morgan vaults are carpeted with bonds that cannot be marked except at a loss and the Morgans are going to sit