Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-06-14
Financial News Letter
By ". G. NICHOLAS.
Special Correspondence OF The Star.

matched orders which have been a dis
graceful part of the manipulation for the
last ten weeks. disappeared entirely.
greatly to the disappointment Of the two
dollar brokers who handle the bulk OF
this sort Of decoy business.
The sharp slump in the aggregate of
transactions has produced slight change
in prices, huctuation going on about as
before. one day up and the next day on.
with nothing in the proceedings to indi-
cate trend. unless it be that values In
clined to sag little when left alone APP
parently the good things in the situation
have been to large extent discounted,
and the market is in mood to await fur-
Their political and trade developments be-
fore making decided start up or down.
| PROFESSIONALLY the near approach of
the national convention is the chief con-
tributory cause of the present inaction.
The market masters appear quite willing
to hold off until they see who is nom
mated at Chicago and have a chance to
study the platform. The selection Of Mr..
Taft as republican standard bearer is gen.
orally accepted as foreordained, but there
are other things to be considered beside
that mere fact 1t is regarded as OF mar
ket Importance to ascertain what kind OF
a taste the convention leaves in the mouth
of the public and whether or not irrecon-
cilable bitterances are engendered which
may weaken the ticket at the polls in NO
vember. 1t is considered of the very high
est importance among the great Industrial
corporations as to the degree of tariff re-
| vision which may be foreShadowed In the
platform. That there will be revision next
| year or the year following is generally
conceded. fact which is already having
decided market influence, remote though
the actual change may be.
though
republicans may retain control of the ma
| tional House Of Representatives by
small majority they will be able to pre-
vent sharp revision. for among the re-
| publicans of both branches of Congress
| there is and probably will be a. formid-
| able element likely to work with the DEM
ocrats for a drastic reduction from the
| high protective schedules of today. The
New England membership in Congress
| is expected to give material aid In this
| direction. a fact well understood in finan-
| cial as well as political circles. The agi-
tation incident to anticipated tariff re-
vision can hardly fail to exert a depress-
ing influence on stock quotations. espe-
| cially of the iron and steel issues. sugar,
| tobacco. paper, lead. leather, etc. The
great railroad equipment companies and
the electric companies will naturally be
benefited by the cheapened cost of raw
material. The railroads should also be
the gamer from the increased tonnage
due to an enlarged volume Of business.
| This latter point is urged strongly by the
| tariff reformers; it is, in fact one of the
| main points And then comes another
| intensely disturbing notwithstanding to
business and politics alike-the inevitable
readjustment Of wages which must fol-
| low important tariff reduction.
| All of these things are already in the
| minds Of men who have to look ahead
| and plan for the management of the vast
| interests entrusted to them. They are
| also in the minds of those dependent upon
| no0 hoi 1iYin0-the
| stockholders and bondholders, who now
number more than 100000.
| The revival in business. while percepti-
BILE. has not yet assumed anything like
the proportions of a boom. much as the
members Of the Sunshine Club would like
to have it appear that way. 1t is prob
ably true that the shelves of the mer-
chants throughout the country are not
| overStocked and that the warehouses of
manufacturers and wholesalers are far
| from glutted. yet purchasers of fresh sup
| plies are as yet rather Sparing. In mills and
| factories and workshops and in the build
| ing and other trades the increased volume
of orders finds reflection more in the
| longer hours to employees kept on the
rolls than to the hiring Of additional men.
This betokens a general lack of confidence
in the wholesale return of prosperity and
|
| already observable. The effeo1 of the cut
| in steel and iron prices and in ore can
| not yet be measured.
There is a difference Of opinion as to
| whether the price reduction will stimulate
business or whether intending buyers will
| hold off for a further concession. The
result Of the action of the big combine
in yielding to the pressure for lower
prices is being awaited with very great
| interest.
| The aggregate Of new corporation cap
ital during the first half of the current
year has been larger than most people
dream Of. Since the list Of January the
railroads and industrial companies have
authorized the sale of $205. 600. 600 in new
stocks and $1.037 OO0,OO in new bonds.
against about $J000o0.6C0 stocks and
$500. OOOOO bonds for the corresponding
have certainly made heroic grab for
| loanable funds in sight. For the time
being they seem to have got about all
| they want. although new fotations for
along. the latest being $13. 900 in New
| York Central debentures (notes) soon to
be distributed by Mr.. Morgan's house.
| The Union Pacific made a success of its
$50 600. 600 bond flotation here and abroad.
and Mr.. Hartman is again flush with
ready cash to liquidate the immense L.
P floating Indebtedness and continue his
purchase of such other properties as he
| may take a fancy to.
It took about four years to bring George
Gould to a realization that he was amen
able to discipline. He has at last learned
his lesson. however. admits the fact and
gives pledge of his withdrawal from the
field Of disturbance. He will hereafter
be a good boy if he is allowed to retain
control of his Missouri Pacific and
| Wabash systems with their natural eX-
tensions and allies He died hard. and it
was only when brought face to face with
the cold hard fact that II he did not
listen to reason and advice he would be
thoroughly isolated and backed off the
boards eventually. AS it is he has
formed a truce with Mr.. Hartman under
the terms of which he will be allowed
to complete the Western Pacific to San
Francisco. He must, however. abandon
his ambitius plans for an eastern ex-
tension from Pittsburg to Baltimore.
A we'll defined rumor is in circulation
that Morgan & Co. are behind project
for the consolidation of a number of the