Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-09-26
LONG" STOCK MOVING
Liquidation and Distribution
Feature of Market.
PUBLIC CREDUllTY TAXED
Market Leaders Getting Rid Of
Unsold Surplus.
BEAR SENTIMENT ON U. P.
How the Trust Companies Bamboo
xle tho Inquisitive-1ron and
Steel Boom On.
BEAR SENTIMENT ON U. P.
Special Correspondence Of The Star.

NEW YORK, September %, 1909.
The liquidation and distribution of long
stock continues to be the leading feature Of
the market. On every hard spot the stuff
comes out. Spectators and eleventh.
hour bulls are getting the goods which
the bargain hunters picked up away back
there during the panic and the season
of depression which followed. The mer-
chant class and the real owners of cash
In large and small quantities preferred
then to take their money out of banks
and trust companies. where 1T was earn
ing nothing. and put it into securities
yielding and II per cent on the invest
ment. Now the situation has reversed.
and the same people are finding use for
their capital in their private enterprises.
Stocks have had an enormous advance
In the meantime, and are now yielding
on an average to 51s per cent. They
have ceased to be attractive to the peo-
pie who took advantage Of low quota
tons a year and half ago, and conse-
quently we are In the midst of a period
of readjustment.' Capital is being taken
out of the stock market and again
placed within reach of private enter
prises privately directed. 1t is entering
into the general business of the coun-
try. Europe, too. is sending back reams
season of red flag quotations.
Wall street Is getting more than 1t
really needs. and the effort of the great
market leaders is obviously to keep the
unsold surplus Of their speculative lines.
The workings of the machinery are so
plainly visible that 1t is almost as though
they were on public exhibition in the show
unreality are taking the place Of fact
and sober reason. The credulity of the
public is being taxed to the uttermost, and
no story is too wild or impossible to find
a myriad Of willing believers. And all the
time the wise old gray wolves are feed
ing their stock out.
Hartman and q. p.
A strong and growing bearish senti-
ment on Union Pacific is developing 1t is
grounded on the theory that e. H. Har-
riman alive was an asset of tremendous
value to the company, and that in the
nature of things the wiping out of that
asset is distinct loss. the Importance Of
which will be felt harder and appreciated
more six months or q year hence than
now. Those who are taking this position
refuse to concede that the withdrawal of
the Hartman personality from Union Pa
cfhc can by any process of sane reasoning
be tortured into a bullish market factor.
They say he was the soul of the prop
erty. and so thoroughly identified with its
wonderful growth from next to nothing
into one of the greatest railroad systems
in the world that deprivation of his sery-
ices Is blow of most serious conse-
Quences.
Talk, freely and fish bloodedly INDUCED
In by men who are glad he Is dead and
out Of the way, that Wall street and the
railroad world are well rid of him as a
disturbing and dangerous person, only in
furiates his friends and admirers without
making converts. There Is an earnest
bear belief that traders getting on top of
Union Pacific at these prices can ride it
down for 30 to 10 points before July, 1910.
The Steel Trust Is not the first big BUSH
ness concern to treat Its own departments,
bureaus and subsidiary companies as in
dependent customers. Years before the
Steel Trust was born a committee of Con-
gress had the late Phil u. Armour before
1t In an endeavor to get at the true in
wardness Of the budding beef trust, Of
which Mr.. Armour was father. The COM
mittee was especially anxious to learn
about the profits Of Armour & Co., and
the founder of the house was ordered to
produce the balance sheets. He did SO.
and 1t was shown that on total business
Of something like $5O.0O0OO0 a year Ar
mour & Co. Uhe parent house, had
cleared less than 100000. That was voted
a ridiculously small profit and the country
gave the committee such a laugh that 1t
soon gave up the hunt for beef trust op-
preston.