Evening star., 1908-12-13
BULLS IN DILEMMA
At Loss for an Excuse for
Further Advance.
SHAPING FOR A REACTION
Disposition to Await Action of Con-
grSs on Tariff.
CARNEGIE STIRS STEEL MEN
Recent Utterances on Revision Dis
arranges Their Plans-Lively
Times Forecasted.
CARNEGIE STIRS STEEL MEN
Special Correspondence of The Star.

sometimes little above the line, and
most favorable conditions having been
discounted, the bulls are somewhat put to
it for excuse for further advance. The
chief bull factor at the present time Is
cheap money, which Is still in abundant
supply and available for the uses of fa-
vored market leaders, although the bank
ing interests are endeavorinG to impress
people with the idea that some time dur
ing the next thirty days rates may adj
vance sharply. Some Of the spokesmen
for the banks are talking and per cent
for call money between now and the 1st
of January. This prospect is not in the
least dismaying to the bulls. however.
They are not unfamiliar with % per cent
call money at the end of the year and
as high as 100 per cent has been paid
within the memory of the very youngest
members of the stock exchange.
The situation seems to be shaping for a
reaction OF considerable Importance. The
imminencc of tariff revision has beyond a
doubt produced chill in general busi-
ness, although for the moment the season.
able holiday activity in mercantile
branches gives an appearance of whole
sale and broadcast progress toward max
imum prosperity. In the background
however, it is an undcniable fact that
the situation is sackening and that there
is growing disposition to await the
actlon OF Congress on the tariff schedules
before becoming committed to plans for
the future. The purpose of Congress to
make only perfunctory revision and
have through with it as quickly as pos
sible is likely to be changed under the
pressure of an aroused popular sentiment
Tor real revision. 1t is now felt that the
House ways and means committee COM
mltted mistake in starting in on the
hearings at this early date, when there
was no particular occasion for it to mix
n INN 1fafN
this early initiative has been to start a
tarln agitation months before the meeting
of the Congress which will change the
existing law. This is now voted to have
peen grave error and to have been the
occasion OF disturbance in conditions
which might have been avoided However.
the cork has been pulled out of the bottle
ana there Will be no stopping the dis
turbance until the signature of the Presi-
dent is on d new bill. 1t is a growing
consciousness of this fact which is like
ly to 1mpart to the stock market a spirit
or dullness and reaction for the next few
weeks or months
1t is the chief reason why railroads are
not taking advantage of the cheap-money
situation to float new bond issues Nearly
everything they have to buy in the way
OF materials will be affected in price by
tariff revision, and they look upon it as
Dad hnanciering to fill their treasures
with idle funds when they are reasonably
sure to get what money they may need
later on They have drawn back into
their shells: They feel that they have
consequence they are contributing very
little to the booking of orders for next
years business. This makes the outlook
for most of the iron and steel companies
ana the equipment concerns very unfiat-
ter1ng. Thus far, however, the reflection
of actual conditions is not shown on the
tape So far there has been little dispo-
sltion to get rid of stocks, although for
the moment new buying is not in order
The market seems to be working stale.
Without important public backing or act
I've open manipulation prices are not in
way to advance much further The
public has symptoms of cold feet. What
the manlpulators will do cannot be fore
toid. Inc mind-reading equipment of the
forecaSters gets out of working order
when confronted with this question
Up in Arms Against Carnegie.
There are few people not lin the know
who can appreciate the depth and inten-
sity OF the aftermath commotion incident
to the Carnegie utterance on tariff. Rep
resentatives of every industrial in the
country are stirred up, and particularly
those engaged in iron and steel manufac-
lures. These people are In New York in
great numbers, and wherever they get to-
gether there is a buzzing like a nest of
angry hornets. They do not underest1-
mate the opinion-shaping Importance OF
Mr.. Carnegie's statements, and to his
open stand on the question they attribute
the changed popular sentiment for actual
revision downward. They are criticising
fllm with an earnestneSs that is genuine
beyond doubt. He has disarranged all
their plans and made it necessary for
them to go before Congress and the coun-
try and make a fight for their lives
Back of 1t all is a feeling that the big
steel corporation should be held RESPONSE
bic for the newly arisen unpleas SAINT cOndi- |
ton. A serious cut in the duties on iron
and steel and their products might mean
ruin to scores of independent concerns. |
while the giant corporation would in the |
end be gamer by reason of its enormous
resources and its advantages in the way
of cheap raw material and transportation.
Leading officials of the steel trust are
doing their best to counteract this I'M
preston, and it is known on the inside |
that Mr.. Corey will go before the ways
and means committee cooked and primed |
with facts, figures and arguments to con-
trovert every position taken by his Old |
chief. Mr. Carnegie. In the opinion or
the iron and steel specialists the prom |
lsed dispute between the president of the
steel trust on the Washington stage will |
be sensational in the extreme. The trust !
management feels that it has to make i
good with the independents or run the |
risk of trade fight which might bring |
disaster on the whole country and put an |
end to the harmonious relations which 1t |
has been the endeavor of the corporation |
to bring about ever since 1t was organ |
lied. The situation from a market stand |
point becomes acute and interesting. and |
may have decided effect on prices OF |
the entire Industrial stock list.
Tariff Governing influence.
The writer must be excused for giving
so much space to matters connected with |
the tariff. but as matter of fact this Is
likely to be governing influence in the |
market for many months and discussion
of salient phases is altogether timely |
Tariff revision is the one thing which will
hold up and delay a restoration of ac-
tivity for several months. Several times
during the last thirty years the public |
has stopped buying iron and steel and |
many other manufactured products on |
account of tariff agitation On some |
of these occasions 1t looked as though |
there never would be any more buying |
and periods of intense stagnaton have re- |
suited. These seasons have been marked |
by severe breaks In the prices of most |
securities. Veteran and experienced men |
In Wall street and in the Industries have |
their recollection sharpened and they are |
very much more concerned over the poS-
sibilities than the newer generation
They have gone through the mill and
know what it means for the buying pow
er to suddenly get stasnant They have
their ears to the ground for limitations
of recurrence of the phenomena. They