Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-07-26
Financial News Letter
BY W. G. NICHOLAS.
Special Correspondence Of The Star.

OOOOOO Standard Oil fine was wiped out,
the judge who imposed it was criticised
by his seniors on the appellate bench, and
last but not least the big steel trust Is
taking steps to increase production
whether there is present demand for
the stuff or not-just to show that the
management has confidence In the future
and is willing to take chances on its
Judgment.
At the higher range Of prices establish
ed this week about half the ground lost
on the great slump of last year has been
recovered. At the low point which was
made last November the average OF 20
of the leading railroad stocks was about
SO, decline from the high-water mark
of the previous January OF 80 points. The
high level reached on the same twenty
stocks the middle of this week was 1O5
just half way back from the starting
point.
The price record OF the industrial stocks
Is even more remarkable. The high mark
reached in January, 1907. on twelve Of
the principal industrials was 30 and the
low point in November. SO. This week 10
was reached on the road TO recovery. This
latter figure marks rise OF rs. which Is
within IL points Of the top for last year.
The recovery in the whole market has
gone on steadily for more than three
months with only minor reactions. The
advance in the stock market has led the
recovery in actual business and in the
opinion of a great number Of conserva-
tives the bull movement has been en-
tirely too rapid. The market has moved
however, with entire Indifference to the
opinion of this hold back element. Manlp-
ulation has been glaringly in evidence
nearly all throughout the campaign. but
the price action has been just as disas-
trous to the bear party as though 1t was
genuine. The market has run over every
body and everything that got In the way.
The great market leaders have had the
command of an enormous amount of
money which was placed within their
reach by controlled banks and trust COM
panies and they have used it with ex-
trao<dinary courage and ability. By COM
mon consent the chief credit for the gi
gantic market upheaval is given to Mr..
Hartman, Mr.. Frick and their Standard
Oil allies. with Mr.. Morgan and his fol-
lowing lending late aid with evidenced
signs OF more or less reluctance. The
Morgan party was clearly drafted and
the bull movement is generally under
stood to have interfered with some of the
firms plans looking to the reorganiza
ton of certain railroad properties, nota-
bly, Erie and Southern. 1t now looks as
though these and several other corpora
lions which were under the harrow might
pull through. All they need to win out is
business. The apostles of prosperity and
sunshine predict that the business will
materialiZe In the immediate future. The
one tnln8 certain IS tHat IL mas not yet
appeared in evidence. 1t does not show
in earnings. Prosperity, according to the
rules of Christian Science, is all right as
far as 1t goes, but something more sub
stantial is needed to make a showing on
the ledger. The later phases of the bull
campaign in the stock market are based
almost entirely on faith and hope. If
there is virtue in concert Of conversation
along the lines of returning confidence
and prosperity, then indeed are We on the
ro. -
the big ones seem to be in accord In
prophesying good times right ihead of us.
Thus far it has been rich mans mar
ket. The general public has participated
in the speculative movement only to
limited extent. On the big break of last
fall and winter hundreds of thousands of
investors big and little took advantage
of low prices to get into securities. 1t
does not appear that the stock and bonds
then acquired have been sold out. The
bargain hunters appear to have taken the
stuff to hold. The time may come when
the securities will reach a point that will
tempt sales, but that point does not seem
to have been attained yet. The specula-
ton was originated and engineered by a
combination of very rich and very auda
cious operators in Wall street, backed by
the resources OF dozen or more of great
banking houses with Standard Oil. Har-
riman and Morgan affiliations Mr.. Thomas
F. Ryan is also supposed to be another
important factor. He is believed to have
accumulated vast amounts Of securities
under the hammer. Some Of his enemies
accused him of having helped along the
great slump in order that he might get
better hold Of properties in which he is
interested, conspicuously the New York
fractions. In this connection It Is said
that Mr.. August Belmont has entirely lost
his grip on the Manhattan situation, a
hint of which was broadly given In these
dispatches three months ago.
Control Of the destinies OF Shelters Is
reported to have been Entrusted with John
D. Rockefeller. jr. That highly moral
young man is credited with being in en-
tire charge of the Wall street end Of the
Of endeavor. He has run several cam
paigns. not all Of them successfully. He
was we'll trimmed in Leather a few years
ago. when he undertook to run a corner
In that stock. He put the price up to "a
for common, at which figure large guam
ties were unloaded on him, and he was
obliged to let the market down to 10 and
under. He hung on. however. and figured
In the subsequent reorganization, and In
connection with his friend ]. Ogden Ar
mour Is said to. control the property. A
feature of the junior Rockefeller's Wall
street campaign In Shelters is the circu-
lation Of flood OF bull tips. Thus far
the dope has been good. but the speculat-
ors who act on 1t are willy and nimble-
footed set. They will run at a moments
notice. Help from that quarter is dan
gerous. Too much company Of that par
ticular description Is making young Mr..
Rockefeller very nervous.
Persons in the confidence Of 20 Broad
way had the tip on that Chicago decision
nearly a week before 1t was handed
down. This Is another illustration Of the
fact that Wall street is always able to
get advance Information on important
court decisions whenever 1t wants to. 1t
has always been able to tap Washington
or Supreme Court decisions and seems to
have had no trouble whatever In reaching
the fountain sources at Chicago. Indeed,
some enemies Of Standard Oil intimate
that the decision might as we'll have been
written at 26 Broadway and that 1t reads
like brief prepared by Standard Oil at
tOrneyS.
Westinghouse in three days supplied ex-
citement to the put and call crowd on
New street. Some good killings" were
made by the votaries of PRIVILEGE" spec
ulat1on. And there were also some very
narrow escapes. J. Arthur Joseph, the
financial writer. Is kicking himself over
falling to get call on 100 shares offered
him at 611a for $50. He had made up his
mind to take the call, but turned his
head a moment to answer question, and
before he could get his money out another
man had grabbed the paper" The next
day the market jumped II points and the
day following 1S points more, which would
have netted $500. The joke in this par
ticular case was that the buyer of the
call referred to was satisfied to take a
half point on his 100 shares, getting back
his investment and $50. He, too, is kick
ing himself over having lost a golden
chance TO win prize in the lottery:
Once more the story of a reconciliation
between Hartman and Ceorpo Gould