Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-12-20
TWO ELEMENTS AT WORK
Manipulators and Bank Interests
Figure Differently.
HUGHES COMMISSION VIEWS
Brokers Openly Favor Probe-Fla-
grant Cases for Inquiry-How the
Public Gets Worst of It.
Special Correspondence OF The Star

Special Correspondence OF The Star.
NEW YORK. December 49, 1908
The stock market has lapsed into
state of holiday desuetude, with
the talent working to get its daily
scalping tribute from the public. A
very decided difference of opinion has
developed as to the immediate future of
the market, however. and it may now be
described as distinctly two-sided. \ very
powerful element in the market is con-
WINGED that the advance has gone far
enough and that only the rankest manipu-
lation can put prices materially higher.
Even the big manipulators. who have
time and again demonstrated their mas
terry of the speculative situation. seem
indisposed to crowd things. Bankers, as
a rule. are on the side of the conserva-
tives,- who thing a reaction IS in order
and would be healthy. They are calling
In loans moderately and getting them
selves in shape for the end-of-the-year
calls. which will include the sending out
Of checks for something like $l75 900, 0CO
in dividends and interest. This calls for
a shortening of sail. but as money Is very
plentiful the operation is not drastic.
At the same time the bankers are trying
to make it appear hard as possible. in
order that they may have an excuse for
marking up the call rates which have
been perceptibly hardening for some time
past. This phenomenon is of annual re-
currence, however. 1t is looked for in
December as regularly as the almanac
announcement of the arrival of that
month. At the same time the banks are
obviously against any disturbance which
might throw the market into state of
MIND which would only be satisfied by a
harsh decline in prices The banks have
money to sell. and would like to get as
high price for it as possible. but not at
the expense of a big disturbance in the
market at time when the patient is
being coddled along through the middle
stages of convalescence
Ihe. professionals have been against"
the market for week or ten days. That
attitude is made known in a variety Of
ways. Down to date 1t seems to have
made small outside impression. To all
surface appearances the great body of the
ice still seems strong and firm. It is
noticed. however. that a good many air
holes are appearing. This is shown main
~ IN the odds and ends. This class Of
stocks have been marked up and put in
line with the rest of the market during
the last month or two and have seem
ingly. Joined strongly in the big general
broad movement. 1t is observed, however,
that whenever anybody wants to sell some
OF these insects as they are called. in
substitution for the old designation cats
and dogs" trades are made at a very
sharp concession from last quoted prices.
Brokers often find it impossible to get
within one or two points of the market as
1t looked to be before an offering of real
stock materialiZed
Several Lively Topics.
Wall street has had several things to
talk about this week. One is the Supreme
Court decision in the Hartman case. An
other is the appointment of commission
OF eminent citizens by Gov. Hughes to
Investigate the financial district and
formulate a plan for its reformation. The
third topic is the progress of the tariff
hearings before the ways and means COM
mittee, and last but not Of least Importance
is the unexpected development of talka-
tiveness on the part of Mr.. Taft The
moral effect of the Hartman decision
was unfavorable. 1t seemed to give to
Insiders of corporations a license to ex-
plot the treasures Of these corporations
by immunity from haraSsment for private
purchases of stocks and their sale to the
companies controlled by said insiders
AS matter of fact the decision gives
no such freedom of action. Upon that
point no opinion is expressed. The ruling
merely puts a limit on the power of the
interstate commerce commission in its
examination of witnesses. The effect of
the decision is that another method will
have to be found to get at men charged
or suspected with having wrongfully used
their powers as officers of corporations
for their own enrichment at the expense
of the stockholders. Evidently they cam
not be reached by the process attempted
by the government in this particular Har-
riman instance. Until the right way is
found men of the Hartman. T. F. Ryan
type will feel freer to go ahead with their
eXploitations.
From the teeth out Wall street gives
joyous approval of the Gov. Hughes plan
for correcting abuses of business ethics
and practice in connection with the Sc
curities and banking game. Back of the
ma SIX, however. there is good deal of
uneasiness. The machinery of Wall
street is admittedly necessary 10 the buy
ing and selling of stocks and bonds and
to the transaction of large affairs involv-
ing capital in iunusual amounts. Never
theless. both the banks and the stock eX-
change are vulnerable to attacks for fail
ure to give proper protection to the pub
lie 1t is hard to say, which is the great
est sinner. The banks are VIGOROUSLY
given to lending themselves to the use of
the public's money for whatever purposes
it may be desired by favorite interests.
A most flagrant case in point was the
experience Of the panic last year in the
period Immediately subsequent thereto.
Depositors were kept ont of their money
for many weeks. clearing house certif-
Gates being issued to the amount Of near
ly S1O0.OOOO0O.
III was lhen charged ana is now 1ullV
believed by many that the money thus
withheld from its rightfu owners was be-
ing loaned to great market operators for
the purchase and accumulation of stocks
then on the bargain counter Similar
charges have been frequently laid at the
doors of New York banking institutions.
but rarely has there been such strong
evidence available to prove the accusa-
ton as that furnished by the panic and
the record of what Immediately followed.
Exchange Has Grown Arrogant.
The stock exchange has grown arrogant,
and has time and again refused justice to
the public when it has been flagrantly
outraged through the misfortunes and
swindling operations made possible only
by the misuse of the machinery Of the
exchange. That body, which is nom
incorporated association. lodges many
legal responsibilities by reason of it's
form or non form of organization, al
though on every occasion calling upon the
law for protection and guardianship. Its
rules are framed for the protection of
members against each other, and these
rules discriminate against the public in