The Birmingham age-herald., 1907-07-14
WALL STREEFSLOW ID CREDIT REPORT I Governments Plan of Trust
 Busting Causes Scare THE TRADERS GET BUSY The President and Ills Administration Are Becoming More and More of
 a Puzzle to Wall Street.
 The Coffee Market.
THE TRADERS GET BUSY
BY w, G, NICHOLAS.

New York, July 13.-(Special.) l.)-Wall street was slow to credit the Washing ton report that the administration was about to embark on a new plan of trust busting by having receivers ap- pointed for corporations accused of vio- lating the Sherman antitrust law. The statement appeared first exclusively in the columns of the Sun. It was so ex- traordinary that confirmation was re- quired and 1t was not until the next day that the street accepted the story as true The proposition was so start ling and novel that the community was 10th to believe. Then, when 1t finally dawned on traders that the move might be the beginning of a comprehensive campaign for federal ownership and seiz- ure of private property, they proceeded to get scared. When Wall street takes on this mood 1t loses no time In the selling of stocks.
 The President and his administration are becoming more and more of a puzzle to Wall street. One moment word Is received that Mr. Roosevelt, realizing that continuance of his aggressive pol icies might be unwise at this time, had
 
 kindly assurance, business men compose themselves and go ahead with a feeling that there will be no more agitation. They hardly have time to turn around before something happens with Washing ton inspiration to knock all these thories in the head.
 Nothing which has occurred in many months, however. was quite so disturb ing as the Washington advlces of the Presidents intended embarkation upon line of adventure in fresh fields where he could have freer rein for the exercise of his trust busting propensities. It is too soon yet to form judgment as to the ex- tent to which this new campaign is to be carried or what It's effect will be upon the stock market. To say that Wall street is much disturbed would be stat ing the case mildly. It is full of gen. uine alarm. more so than at any time since the President began to formulate his ideas on corporations.
 An entirely unexpected decision by a federal judge in New York, declaring the Belmont Ryan traction merger to be i- legal, has given the public utilities com mission an excuse for a prompt inVesti gation of the inlquitous deal. This Is one of the most indefnable pieces of job bery and stock watering in recent his- tory. The eliminating feature added $1OS,-
 
 capitalization. The outstanding stock and bonds of the various companies involved represents on the face probably ten times the cost of the plant. In Greater New York alone about $50, 000,0 900 Is collected annually by the elevated surface and subway lines, and in the city of Brook lyn about s20,0O0O00 additional. The Bel mont-Ryan combination does not take in any part of Long Island, confining itself to Manhattan and the Bronx. While the Metropolitan and surface roads of New York were under the control of the late William C. Whitney, that emil nent financier did some remarkable stunts, but in the heyday of his success he never attempted or got away with anything as wholesale as the final play by his successors Ryan and Belmont, in creating s1OS,OOQOOO new capital by a simple twist of the wrist and scratch or the pen.
 Back of the merger scheme there turks a sinister plot for the entire wiping out of one or more layers of share capital. The Metropolitan and Third Avenue stockh olders are sup posed to be marked for a slaughter. Dividends on this stock are guaranteed by a New York street car company which owns little or nothing, and wh ose stock In return is held in block by the Metropolitan Securities com pany. This company is doing the financing for the entire group, and In raising money to pay the guaranteed dividends it has created a big floating debt which Is behind and under the guaranteed stocks. The belief is cur rent that some day the guaranteeing company will default and the owners of the underlying obligations of the guaranteeing company will proceed to grab off everything in sight and there by eliminate the Third Avenue and Metropolitan stock-virtually wipe it out of existence.
 Whether the public utilities commis- sion will be able to stop this conspiracy is an open question. It may, however, bring things to a head and force an exposure which will reveal the full extent of the iniquity planned and be- ing worked out by those two great captains of finance and traction ex- ploitation, Messrs. T. F. Ryan and Au- gust Belmont. MT. Ryan is at present in Europe. MT. Belmont returned hur- riedly from the other side arriving here few days ago. He is looking after his fences and saying nothinHs' The interests which these two men dominate in the city of New York rep resent in bonds and stocks more than $500, 900, 900.
 The break in the price of copper which has been officially admitted con firms statements made in these letters for several weeks past of sales made below the fictitious quotations fathered by the big selling companies and pro- ducers The copper market has been virtually deadlocked for two months or more and whatever business was done went on behind the scenes, and at very radical concessions. The mark ing down which has just occurred establishes electrolytic copper on a basis of 22 cents up to tho first of September.
 It was loudly advertised that under the new arrangement there were heavy sales. Thus far actual business has been only moderate. representing the hand to mouth demands of consumers The opinion is held by many of the larger buyers that te copped metal market Is scheduled for a still fur ther break and they are not commit ting themselves any further into the future than they have to at present prices. Since the beginning of the year the great mines have been cur tailing rather than increasing pro- duction.
 Wherever possible they have been working on low grade ore and Ieay- ing the rich grades for reduction and smelting later on. The practical effect of this policy will be to pile up vast reserves of the better class ores with which to overwhelm some of the new has been proceeding for the last year
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