Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-05-03

w
Growing out of the phenomenal and, to
many, the inexplicable market Of the last
thirty days is a crop of rumors and ex-
plantations, many of them foolish and
freakish, and others strangely and sensa-
exceedingly well-informed quarters a be-
lief that the two most formidable parties
in the financial district are in deadly
battle. each side knowing the others ex-
act position and resources. and being bent
on inflicting punishment OF the most
serious kind. Here is the way the situa-
ton is explained by an experienced OPP
orator. whose sources of information are
as good as any mans in the street:
Il believe there is today tremendous
short interest in the stock market. not
scattering interest. such as might be rep
resented by professionals or by commits
sion houses sold short against their GUS
toners accounts. but by concentrated
equipped element, which Is
able to keep in the background through
its command Of the resources OF con-
trolled banks. trust and insurance COM
panies. and of the surplus capital OF cor
porations. Against this element or party
there is aligned a combination as strong,
If not stronger. In resources. which mas
been persistently and consistently buying
stocks ever since the panic of last fall
buying until it has absorbed practically
all the floating stock in several of the
active specialties and an immense mass
of speculative sales for short account.
"A factor that has been Of great assist
ance to the bull party has been the scat
tered buying of the small investors. who
in the aggregate have taken out of the
market millions of shares of stock. This
has made easier for the bull combination.
and enabled it to take and hold COM
poSition; in other words. 1t has
the stocks and all the money it needs to
finance its campaign, and Is strategical-
ly situated to compel settlement on its
own terms. The bull party is now play
ing on velvet and has the opposition
backed up against the wall. In my Opin-
lon the stock market is on a veritable
volcano. and IL the bull leaders are dis
posed to press their advantage we are
likely to see Mount Pelee explosion one
of these nearby days that will rend Wall
street as never before in it's history"
The theory as outlined above can only
have reference to hostile parties, one
headed by E. H. Hartman and the other
by ]. P. Morgan. The plain Inference is
that Mr.. Morgan and his faction have
been against the advance engineered by
Hartman. and that in fighting it they
have put themselves at the mercy of the
indomitable little tinancier. who seems
never to be at peace with himself unless
he is in the midst of battle-and the big
ger the enemy the better pleased he Is.
Time and again he has grappled with Mr..
Morgan. and in majority of cases he
has come out ahead. Is it possible that
these giants of high finance are engaged
in life and death struggle for suprem-
acy in this day of our Lord. 1908? Such
a spectacle would be fitting climax to
the remarkable duel which these le-
viathians in the money world have been
carrying on internationally for fifteen
years. An observer who has been watch
ing this fight interestedly said 1t Is a case
of 1.-The Hartman sword1sh against the
Morgan whale.
More than ever is Wall street convinced
that political ''dear' has been made with
which will insure peace in
the business world during the next five
ton of Mr.. Taft. According to Wall
street construction this deal involves a
letting up on governmental prosecution OF
trusts. an abandonment of further nag
ging legislation, the encouragement OF
political attacks of all kinds on property
and the appointment of judges on the gu
preme bench satisfactory to 1.-The inter-
\
eral amnesty for the harassed multi
class.
In return for this list Of favors a gener-
Gus campaign fund is to be subscr. Ded,
and everything is to be lovely for a rest
grafton of confidence. 1t Is remarkable to
what an extent faith in this story has
found Judgment in the Wall street popu-
lation. 1t has played an important part
In the manipulation of sentiment, which
to considerable extent is behind the bull
in the stock market.
The individuals who are variously
named as having contributed to bringing
about this beautiful ''dea" are Elihu Root.
Judge E. G. Gary of the steel trust, ]. p.
Morgan and Myron Herrick Of Cleveland.
The inspired word continues to be passed
along the line that Mr.. Taft will be IAN
acceptable candidate" despite his pro-
fessed allegiance to Mr.. Roosevelt's ad-
vanced views and to his much criticised
policies" The Taft gospel is preached
In every counting house In Wall street
and on the street corners. The name of
Hughes has almost ceased to be heard.
unless it Is accompanied by plying re-
mark that he should have been SO COM
pletely eclipsed. as he seems to be.
y.
The rise in the market. prior to the end
Of the-w week slide, has been almost wholly
confined to the railroad department. The
for. the most part did not
share ,in the improvement. Even United
States Steel was disappointment. The
,nderlvfn1 trouble nth the 1rf,,af trials In