Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-09-13
Financial News Letter
BY W. G. NICHOLAS.
Special Correspondence Of The Star.


The stock market merry-go-round con-
tinues to keep everybody interested. Manip-
ulation is undisguised Stocks having the
Hartman brand are still leaders. and seem
likely to remain in the foreground. The ac-
tivity which was for good while confined
largely to the issues under Mr.. Harriman's
direct control has spread to his allied COM
panies. The latest of these to show par
ticular animation is poor old Erie, the
common shares Of which have been
marked up to within easy speaking dis
lance of the senior issues and Of some of
the bonds. And this in spite Of the fact
that the road is VIGOROUSLY running be-
hind fixed charges and Is rightfully en-
titled to a place on the pauped list.
A certain rubber-shoed contingent hostile
to Mr.. Hartman profess to see in all this
intense activity in the Hartman stocks.
direct and indirect. a deep-sea conspiracy
to do the great railroad maSnate and
market generally. They say the plan Is
to make travelling so easy for him that he
will be encouraged to spread himself out
thin even as John w. Gates did after his
Louisville and Nashville coup, and as
many others have done who have been
marked for destruction. This theory is
probably far-fetched and without sufficient
foundation in fact.
The truth seems to be that Mr.. Harri-
man needs no assistance and no encour-
agement In his campaigns for the conquest
of the railroad world and the stock mar
ket. He does his own planning and runs
his own game without much consultation
with or thought of others. He is SUI
premely Indifferent of the good or i'll will
of Wall street or the public at large, and
especially of politicians He has found
that when and where he needs the latter
there is a way to reach Them way he
well understands and has Travelled much
His experience with politicians is extern
Sive. and his success in handling them re-
markable, especially in the mountain and
Pacific states. He has also some knowl-
edge OF courts and judges In that part OF
the world, and 1t is said of him that many
an appointment Whereabouts has been die
tated by him in times past, even since he
had his memorable falling out with the
gentleman of the big stick.
X
Mr.. Hartman says with a sneer that
much of the late trading in the stock mar
ket has been in circles" an open ad-
mission of manipulation. The same con-
dition is true of the money market. The
money and credit of dozen great rail-
road systems and industrias have been at
the disposal of the group of big market
gamblers and they have used them to the
full limit. They do not borrow money di
porations over which they have control.
They go through the formula of first de-
posting it with favored banks and trust
companies and then borrowing it of these
have maligned control. The money thus
borrowed has been employed for the last
three or four months in running a gigan-
tic bull campaign in stocks and Is still
being used In the same way. How much
longer the men in official control of the
hop nj niQc will rprYnif
this fragrant misuse Of funds to go on Is
an open question. They appear to be in
no haste to call halt and the work of
marking up quotations proceeds merrlly
and without serious interruption. Ranker
illustrations Of pyramid building or par
leying have never been seen In Wall street
Carried on by people Of lesser Importance
it would not be tolerated. The watch
dogs of the street would go cunning for
the guilty ones. AS 1t is, people can
the show will end.
The average Of prices of stocks Is now
higher than 1t was before the panic of
last October. There is nothing in earn
ings of corporations or In the general
business situation to warrant any such
level of prices. All the good things that
can possibly happen within the next six
months or year plus all the good
things that have happened since recover
ing from the panic started have been dis
counted in the advance which has taken
place. Some people claim that every
thing favorable has been double-discount-
ed And still while the banks and trust
companies are yielding up vast sums to
the gamblers at almost nominal interest
rates there appears to be no good reason
why the players should desist They might
lust as we'll mark Union Pacific up to
200, Reading to 175. Erie to 20, Steel
ganized opposition. no bear party and no
bears of consequence. They have the
game all to themselves. and as long as
they feel like trading in circles there is
none to say them nay.
A feeble attempt has been made within
the last week to organize an election
scare In the market, but the move fell
fiat. The only notice it attracted was to
raise a laugh of incredulity and the wise
ones winked their other eye and said
among themselves, "Oh, yes. we have
been looking for this. We have been
warned from the beginning of the cam
paign that a scare was to be thrown into
Wall street for the purpose of stimulating
campaign contributions. The game won't
work. We know Taft Is as good as
elected and what's the use of bothering
us with any fake scares. Just let US
alone and go about your business. We
don't care whether you have any money
or not" Wall street refuses positively
to consider seriously any talk that looks
as though there might be the slightest
doubt about the November result. Not
even an earthquake would disturb Wall
street complacency on that point.
The stock exchange committee has fin
ished Its investigation into the affairs of
the insolvent firm of A. 0. Brown &
Company and Is understood to have
agreed upon a report in favor of expelling
the two floor members Of that firm. This
conclusion has aroused opposition in the
board of governors and the matter is to
be threshed out at an adjourned meeting
ten days hence. There is much brave
| talk these days about the Self-puriflcatlon
which the stock exchange is about to
undertake in order to head off hostile ma
tional and state legislation. 1t Is gravely
doubted whether anything comes of these
heroic endeavorS. The stock exchange Is
not given to self-discipline. The clique or
combination in self-perpetuating control
Of the organization Is arrogant from core
to circumference and will have to be
brought forcibly under the yoke of legls-
lative supervision and control before 1t
will submit to taking the public into Its
confidence or treating the public with
any degree of fairness. So long as a
stock is active and commissions are to be
made out Of it, 1t will be kept on the trad
ing list regardless of whether the GER
tificates have any real value or not. All
talk to the contrary originating on the
| stock exchange must be taken with