Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-02-21
BULLS AND BEARS
Special Dispatch to The STAG.

Special Dispatch to The STAG.
NEW YORK. February 21.-It Is con-
coded on all sides that the advance In
prices OF stocks yesterday was due almost
altogether to the character Of the decision
In the Illinois Central case. Those in .
position to know the nature OF most of
the buying orders that followed the an
nouncen1ent of the decision say that they
were very largely for the account OF pro-
fessional operators who were committed
to- the short side, and that only in a small
way did they represent new commitments
on the long side. While the highly specula-
tive element thought 1t would be wise to
close out part Of their contracts in the
event Of Mr.. Hartman winning. 1t is
doubted that this class Of operators gave
serious consideration to the principal
points Of the courts opinion.
-
1t Is known, however, that railroad man
ayers and prominent bankers in this city
gave very careful consideration to the
synopsis Of the opinion that was publish
ed here yesterday and regarded 1t as Of
bearing on the Illinois Central situation,
but upon the whole railroad situation with
respect to the ownership by one corpora
ton of the securities OF another. Very
little had been said about the matter, but
1t Is true that prominent railroads and
financial interests had been exceedingly
apprehensive for some time OF what would
happen in the event OF the decision being
in favor of Mr.. Fish.
A prominent stock exchange member
who is closely identified with large
number OF powerful corporate and imam
cial interests. in discussing the Illinois
Central decision. said that in his opinion
the decision would have q decidedly bef1e-
fetal effect upon investors. both In this
country and in Europe. He believed that
the effect abroad would be particularly
notable. In his judgment the Importance
points made by the court with respect to
the ownership OF the securities Of one cor
poration by another as in the fact that
the decisions which are coming to hand
clearly indicate that our courts can be
depended upon to correct the nnista. les
that have been made by legislative bodies
and executive officials. He thinks that
this Will carry more weight with Euro
pean investors and capitalists than the
technical point OF any particular de-
cision.
In the opinion of the more important
stock exchange interests this Is not the
time to bring about great activity in the
speculative market. no matter how many
favorable announcements may be made
These interests almost without exception
agree with the statement credited to e.
Fl. Hartman yesterday that the most i'm
portant matter TO be considered is the
financing Of corporations, particularly the
railroads, in the old-time way by the sale
Of stocks and bonds.
In connection with this idea the sale
yesterday by prominent railroad OF a
block of short term notes did not produce
a good effect. Bond houses find that the
market for their wares is not pick
ing up as they had hoped 1t would do
soon after the city bond sale was carried
through. Railroad managers naturally
are giving first attention to the labor
situa ton. Without exception they say
that wages must be brought down in pros
portion to the present volume of traffic.
Same of them are apprehensive of serious
trouble resulting from a perpendicular
reduction in wages and others are trust
ing to the common sense OF the men and
their leaders.