Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-11-28
BULLS GATHER CASH
Take Advantage of Oil Deci-
sion to Start Selling.
SECRET OF COPPER BREAK
Question Over Further Progress of
Alleged Merger.
NO STEEL DIVIDEND INCREASE
Gossip Busy With Affairs of Rock
Island System-American's Rus
sian Railway Contract.
NO STEEL DIVIDEND INCREASE
Special Correspondence Of The Star.

OH decision. 1t has awakened to real
ize that the finding of the court does not
presage the contiscation of values and
that nobody need fear the results IL they
have been oh&ying the law or If they will
take the trouble to conform to the law.
Even In the event of dissolution of the
illegal Standard Oil Company Of New
Jersey. there is still open the simple way
or combining the long list of subsidiary
corporations by direct purchase of their
assets by the single corporation and the
retirement from business of the various
decoy outfits under which the great COM
bine has been doing business under cover
Tor SO many years.
The government contention is not
against responsible and acknowledged
ownership OF property, but against I'M
lawful combinations N restraint of trade
ana Tor the destruction of Independent
competition. Inns straightforward way
out or its troubles has always Deen open
TO the Standard OH Company and it mas
only to take that path and emerge into
the open. This is probably what will be
Done eventually, tor the tenoency of
court decisions, backed by Overwhelming
popular sentiment, points to that as the
on conclusion.
Before Wall street could get this angle
on the situation, there occurred very con-
siderable liquidation IN the stock market.
especially OF those things which seemed
to be threatened by the court action.
conspicuous In this list were the copper
stocks, which had been doomed tor weeks
on the prospects of a gigantic comb.na-
ton OF the leading mine owning and SELL
ing companies. The who list sympa-
thlzeG to some extent with the break in
coppers, although on every setback it
was noted that the strongest people in
the street were picking up the stocks.
The decline was sufficient, however, to
give the nimble professionals chance
TO nip off substantial profits in many in
stances.
Stalwart Bulls Busy.
Wall street is overrun with stalwart
bulls. many of them the richest men in
the country, who Joyously take advantage
of any little panics which may induce
nght-walsted liquidation or short selling.
INTO the accounts of people of that class
have the stocks which came out this
week passed. A hunuled good reasons
might be cited In support or the wisdom
of the buliish aItltuae unaer the stress
occaslOned by the judicial nnding against
the legality of the S.anaard Oil trust.
Before the United States Circuit Court
hit the oil trust that wallop the big cop
per merger had maze such Roadway that
Its success was almost assured. The ar
rangemen.s We're in the hands of a con-
terence commission composed of John ID.
Ryan, Thomas l.. Cole, Daniel Guggen-
nelm, w. E. Corey and George w. Per-
kins. The leading producing and fnan-
clai interests i'll the copper industry were
represented on the COMMISSION. An agree
ment had been reached to take over
Amaigamated on q BASS of par and Ana
conda at to, par %. The Guggenheims
wanted to put Utah in al %. The COM
mission proposed %, and they were hag-
Cling over that issue when that awful de-
clsIon came across.
In the meantime, the status of Phelps,
Dodge & Co. had been esta blished. That
had been one of the fractional points.
Phelps, Dodge x Co. had been building for
a quarter OF a century or better, and had
grown into an enormously strong propo-
sition, owning many of the best mines
in the southwest and hundreds of miles
of railroads. 1t had great organization
and had declared it would not come into
any combination it could not control.
1t was finally induced, however. to be-
come an outside party to the merger as
sole selling agent for 1t, with the addi-
tional condition that the United Metals
Selling Company would be retired from
the field entirely. 1t must be the whole
thing or it wouldn't play. These terms
were agreed to as the only way for
handling the great Independent company,
which. by the way, is very largely under
the personal direction of Charles BROKER
of Connecticut, a republican politician of
affluence and national influence, and a
wonderfully forceful personality.
Speculation Over Copper Merger.
Then the bolt from the judicial blue,
and everything went into the air. Now
the question is, will the promoters and
principals of the copper merger dare go
ahead with the play in the face of the
Standard Oil decision and the near be-
ginning of a new Congress session? The
very foundation and essence of the COM
bine was control Of the copper output
and the price of the metal, a plan dis
tinctly in violation and defiance of the
law as construed In not only the Standard
Oil case, but in every other case which
has Travelled the route to the Supreme
Court. The Wall street mood is to bet
that the merger, if pulled off at all, will
be along modified lines. and that it is
likely to be delayed Whatever the tenn
porary market effect of the changed po-
sition of the copper people, it may be
safely stated that the general prosperity
of the company will in no manner be
affected. Neither will the price changes
in stocks be of sufficient Importance to
cause more than momentary disquietude,
and that in a very limited way.
It would be very strange If the revela-
tons concerning the iniquities and cor
ruption in the sugar trust do not eventu-
ate in wholesale liquidation of sugar
STOCKS. LIE StOCkS i'll llliS TRUST AEe
distributed among 1900 investors. The
facts which are coming out go far to
show that very considerable part of the
500 100000 or better in dividends which
have been distributed since the wilson
tariff bill went into effect was money
stolen from the government. The single
fact that during this period the books Of
steamship companies show 100000 tons
more sugar received in New York alone
than is accounted for at the custom
house is of itself sufficient to account
for stealings aggregating $13O,O0O.OOO or
more. The average duty on sugar has
been $33 Il ton
1t is an easy matter to show apparent
loss in revenues to the government Of the
amount mentioned and it may be larger.
The government having accepted $1,000
COO In settlement of claims against the
trust, it is extremely improbable that any
more of the loot can be recovered. The
question of vital interest to stockholders
Of the corporation centers on whether 1t
can honestly make dividends at the rate
1t has been paying. 1t would seem that
dividend distributions have run along
within speaking distance of the amount
which seems to have been stolen from the
government.
Earnings and Stealings.
1t is not impossible that honest earn
ngs have been going to the stockholders
right along and the stealings into the
pockets of insiders. 1t would not take
a very great stretch of the imagination