Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-07-04
BULLS GET THE MONEY
Bear Funds the Wonderment
of the Street.
STOCKS CONTINUE STRONG
Reviving Industry and Cheap Money
Market Factors.
TARIFF REVISION INFLUENCE
Flurries Over acknowledgements
in Good Shape for Emergency
Equipment Investments.
STOCKS CONTINUE STRONG
TARIFF REVISION INFLUENCE
Special Correspondence Of The Star.


The average of stocks is unuuestiona-
bly, very high. but the tape readers agree
unanimously that the tape says the mar
ket will go still higher. Every reaction
that occurs is followed by prompt re-
covery. and there Is constant repetition
of punishment inflicted upon the bears
1t has been a long time since the bear
contingent has made a dollar and kept
H. 1t begins to be a matter of wonder
ment where the bears get the money
that the bulls take away from them. Il
is nevertheless a fact that there exists
in the street a very we'll defined bearish
sentiment among professional specuia-
tors. based on the theory that price
levels are artificially high and that as
soon as there is a broad, general use
for surplus money great quantities of
stocks will be thrown upon the market
and prices undergo a general and Sc
we're decline.
From every hand news comes of reviv-
ing industry and improved business, yet
money continues cheap, and, so far as
can be seen, there has occurred no Noui-
datfon OF securities to amount to any
thing. Indeed. quite the contrary Seems
to he the case. for the rank and file of
commission houses say that they are being
are carrying less now than at any time
In weeks or months. Where the stuff
! has gone Is a mystery 10 most people,
The truth seems to be that there has
been going steadily on for year or more
incessant absorption by the general pub
lie.
More plainly every day is the fact be-
coming realized that the country was and
is richer than anybody conceived Of The
panic cut heavily into many individual
in,-o I,.fl
ings of the people went through the hard
times undisturbed. and prices are now
back to, about their formal level In
many instances standard securities are
hlgher than ever, notably Steel preferred
Less Speculative Enthusiasm.
There is less speculative enthusiasm In
the market than has been witnessed for
some time. This emotion has given way
to sense of serene confidence in the
future. Everybody seems to feel that
the country Is in state of extraordinary
solvency and that it is headed to-
ward long period Of progressive
prosperity. No better foundation could
| exist for permanency Of good times.
Everything seems to spell for stability
and endurance. There are some little
specks In the ointment. but nothing seri-
ously menacing is in sight. The labor
troubles which are cropping I'D In the
iron and steel trade may be regarded as
the most serious possibly, and these
troubles are not regarded In the financial
center as being grave enough to shake
faith In general industrial peace.
The opinion prevails among those most
familiar with the iron and steel situation
that the day Is over for union control OF
the mills. The prediction is freely made
that we are entering upon an era of
open shop in that great department of
labor 1t does not appear that the time
is yet ripe for emancipation from union
tyranny In the building trades in the
larf cities. although contractors very
generally agree that there is higher de-
gree of efficiency in that quarter.
| great deal is heard about the crops
these days Reports from the field are
almost without exception favorable. and
| the agricultural GU look may be broadly
described az exceptionally bright 1t may
be that the aggregate production of wheat
| will fall short of high. but the indications
are for a record-breaking corn crop. II
| is yet early to hazard estimates of what
| the total will be. yet on every hand the
| prophecy is heard that the yield will be
| 3, $50 NO.OW bushels. That seems extrava-
CANT. yet many of the reports heard seem
| to give good basis for that enormous fig
! ure. Crop talk crowds into the back
ground discussion about the tariff bill and
| speculation as TO when Congress will get
| through with the job and adjourn. The
speech made by Mr.. Taft in New England
Wednesday night is considered by
4
consideration. BY some 1t is looked upon
as genuinely disturbing and as indicating
| ndesirable political unrest from the mo-
ment Congress adjourns until another
! Congress is elected a year and a half
| hence
| Tariff Revision Sequence.
Many OF the best friends of protection
look upon the deplorable work OF the
present Congress In the matter of tariff
revision as the very worst thing that
could happen. and freely say that the
bill now being ground through will not
only not settle the question as hoped for,
/ but will. in reality. provoke the multi
tudes of consumers into acute and vigor-
Gus political action for another revision
of the tariff-next time downward. The
suggestion made by Mr.. Paul Morton that
| the most satisfactory revision would be
| per cent horizontal cut each year for
i've years seems to be meeting with favor
! In the financial district. 1t looks very
much as though the adjournment oil Con-
gress would be followed by Immediate
| agitation for IL better job. 1t is yet too
early for this matter to he market
! factor. but it is reasonably certain to
| become one in the course of time.
The next formal meeting of the commit
| tees intrusted with formulating plans for
the consolidation of independent iron and
steel companies Will be held at one OF the
! seaside resorts some time this month.
| The gentlemen are hard at work and ex-
| pect to keep at 1t all through the hot
weather. 1t will be one of the most scien-
tifc industrial creations ever seen. The
aggregate capitalization OF the company
that will be part of the independent Or
ganization is not less than $5N,UO,0OO,
but that affords no basis for estimating
what the capital of the proposed new COR
poration will be. The expressed opinion
of several Of the influential men who are
taking part in organizing the new COM
pany is that the capital should be kept as
small as possible.
1t will all be matter of exchange OF
securities anyway. and SO long as an
, equitable basis is arrived at the size of
the capitalization Is not Of first impOr-
lance. The one thing certain at this
stage is that ample working capital in
cash will be provided 1t will start off
fully equipped in that particular anyway,
and there Will never be any need OF go.
ing into the market to borrow money to
do business with or to tide over hard
times If the organization Of the new
company is completed by October the
chief spirits in the enterprise will feel
that they have made good speed.
Hartman Work Enduring.
The street pays less attention to the
daily bulletins about Mr.. Harriman's
health. Great pains have been taken to
impress upon the public the fact that
the Hartman properties will not be al
lowed to suffer. no matter what may
happen to the wonderful little financier
His affairs have been put In such shape
that he could die without change oc-
curing In the policies OF operations OF
dustrials over which he has ruled SO au-
tocratically. 1t Is altogether likely that
on his return from the other side ne will
gradually subside into state OF in