Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-12-27
BEARS GET A BIC JOLT
Meet Ignominious Rout in Up
lift Past Week.
A SENSATIONAL RECOVERY
Closer Community of Interest for
Financiers.
SORE OVER CARNEGIE TALK
Iron and Steel Men Upset Over His
Remarkable Interference in
Behalf Of Public.
SORE OVER CARNEGIE TALK
Special Correspondence of The Star.

ing this week, and then there came
| sudden change. The big people. who had
been standing aside and letting the bears
have an inning, came to life all at once
It had been their program to stand aside
and let the market alone during the last
half Of December and give the banks
| and trust companies chance to finance
tho end of the year requirements with
out any strain on their resources. It
was discovered. however, that this task
could be performed very much more easily
than had been anticipated. Instead Of
there being stringency In the money
| market, abundance and comparative ease
was the situation. Furthermore, the bear
party, under the leadership Of hard hittin Z
operators like Brandt, Walker and Liver
more, the Boston boy wonder. took what
the market masters looked upon as Il
mean advantage of this withdrawal of
| support. They jumped on the market
viciously and not only hammered prices
down. but filled the air with all kinds
| of disturbing rumors. They even revived
sinister talk of certain captains OF in
dustry and great merchants being In trou-
bic. They very cleverly used the names
of men who had been tided over during
the stress OF last winter and who were
described as having difficulty in securing
extensions. All Of which, it may be said
here In parenthesis. was a purely imag-
mary state Of affairs. SO far as can be
learned.
Individuals and corporations able to
weather the storm of last fall and winter
should have no especial trouble IN get
ting through now, and as a matter of
fact no important disturbance or inabil-
ity Is discoverable. None the less, these
old rumors and stories served q bearIsh
purpose to help along stock market
decline. They also served to arouse the
Indignation of great capitalists who had
bnn IT,. OBJ - !,
stocks ever since last spring. 1t was.
therefore. the easiest thing in the world
for this element to make a demonstra-
ton. They came into the market the
first Of the week. and with unlimited buy
Ing orders effected a quick transforma-
ton. The bears, who had been in high
feather and had been pyramiding their ac-
counts with wreckless abandon. aWoke to
lively consciousness that they had been
caught in a trap. They Immediately be-
gan to climb for safety. VIGOROUSLY,
frightened bears are the biggest bulls.
| They want the stock when they want it
and they do not stop to consider the
cost. They run like a drove of stamped
ed cattle before a prairie fire. They saw
what they hau hopefully regarded as
triumphant campaign turned into igno-
minious rout in an hour. They were not
given any chance to get In on the soft
spots. There were no soft spots. In
some Instances almost tho entire loss
made on the sharp reaction OF last week
or SO was recovered. This did not apply
to such stocks as shelters. but the gen
eral list experienced a very powerful up
lift, and 1t was more evenly distributed
than Is usually the case. The leaders
spread their orders all over the floor.
Recovery Starts Gossip.
Tho sensational recovery In prices led
to The uncorlsing OF n mass Of gossip re-
lating to the general market situation.
The impression has gained strong hold
in Wall street that the really important
figures In the world Of finance. Transport
tation and industry are at this moment
nearer a close community of interests
than they had ever been before, and that
developments of the very highest signlii-
canoe are Immediately ahead These de-
Velopments are supposed to include ar
rangements looking to a clearly defined
division OF territory and business among
the railroads. and TO a concerted demand
upon Congress for Il law which viii per-
nit of pooling among the carrying COM
panies. This. of course, is not a new
thing, but 1t is believed that the public
has now been educated to the virtue Of
pooling and will no longer iuterpose the
sturdy opposition which has heretofore
defeated the efforts of the railroads to the
end they have desired. The harmony
above referred to is supposed TO now en-
brace leading interests among the ship
pers
The matter is all fixed w SO far as
Wall street goes. and meets with the
tire approval of stock spectators and in
vestors. as well as stock manufacturers
and statesmen. In the opinion OF most
people hereabouts that Is all that Is need
ed to impress Congress with the necessity
of Immediate and favorable action. All
that is needed Is the mere form of con-
gressional registry Of the wishes OF Wall
street in this matter and the thing is
done Wall street takes itself very seri-
ously and froWns on any spirit of levity
or disrespect manifested by the outside
world
The invasion of the southwest by 1Ir.
Hill in anneXing Mr.. 1iawley's Colorado
Southern to the Burlington system IS ac-
copied as evidence Of q Willingness on the
part Of Mr.. Hartman to permit the thing
to be done. 1t is not considered in the
| light OF hostile move, and it Is even
said that the Union Pacific magnate has
given his approval OF the purchase OF the
M. K. and Il. system by st Paul. In this
connection the report is received with
credence that Mr.. Harrimans influence
In Gould's Missouri Pacific system has
been strengthened almost to the point of
supremacy in it's management. If this is
the case. then the Rock Island Is the only
important system remaining to be taken
care OF In the grand plan of harmoniZa-
ton. 1t Is said that the Messrs Moore
Reid and Yoakum and their associates are
not unfr1endly to the arrangement and
Will be found working In accord with the
other interests 1t Is also said that for
insurance against the possibility Of a slip
up or attempted fencing i'm that tie
Rock Island people are reaching out for
control of the Wabash system which
would give them an entrance into the
eastern territory. This latter story also
| finds many believers.
Carnegie's Surprise.
| The Carnegie testimony has bitterly
angered nearly everybody In the iron and
| steel trade. Not a friendly word in his
behalf is heard. His benevolent interfer-
ence In behalf of the great consuming
public. at the expense OF industries in
which he was able to rear a mammoth
| fortune under high protection, does not
| sit well. 1t was at first feared that the
influence OF his talk would be exceedingly
| damaging and would build I'D such y
that there would be no wthstanding II
So far as can be judged, however, the in
cident seems likely to fall more or less
harmlessly on the Washington situation
The Wall street reception accorded the
Carnegie party before the ways and
means committee was one of almost
| ribald defiance. The old iron master was
fairly booted at. and the minor indus
trials, whose extinction has been suggest
| ed q result of harsh revision held
their heads up strongly, and many of
them have scored substantial advances
since the beginning of the week
There is no doubt that Mr. Thomas f.
Ryan is really retiring from as many of
| his business cares as he put oft on
other shoulders. For thirty Years Mr.