Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-01-10
BROKERS SENSITIVE
Stock Market Now a Zone of
Disturbance.
SLIGHTEST RIPPLE JARS
Court Decisions Start Era of Side
Stepping.
THE DISTURBING INFLUENCES
Trading Element on Change Appre-
hensive of Tariff Changes-Hin-
ORANGES to Price Movements.
THE DISTURBING INFLUENCES
.ial Correspondence OF The Star.

|
| Special Correspondence Of The Star.
NEW YORK. January 9. 1909
The stock market seems to have drift
ed into a zone of disturbance. Things
that happen are no longer passed over
with Indifference, as became the hablt
of the street during the almost I'M
broken bull movement covering a pc
Rod of more than six months. During
all that time accidents did not count
Whole chapters of accidents were passed
over without making the slightest rip
pie Now it is different. Every time
noise is heard Wall street jumps and IN
voluntarily side steps.
The Supreme Court decision is the oCn-
solidated Gas case gave the market
| first shock this week. and it has not yet
entirely recovered its tone or nerve. The
decision came a complete surprise.
1t had been tipped off persistently and
Tor several weeks that the decision
would be in favor of the company. On
the very morning of the day in when
/ the Supreme Court acted parties were
going around the street offering to bet
$1,000 to $500 that the court would de-
| eide for the company. The tfpsterS had
| it sure" and they pretended to nave
| their information from 26 Broadway
(Standard Oil headquarters). If they
| had any inside information down there
as to what the court would do. 1t was
evidently used for the purpose of making
| a market for Con Gas upon which to
| unload. Indeed it would now appear
| that such might have been the game. for
disclosures since the forty point break
prove that the street was literally plas-
tered with that particular stock.
Dumped With the Goods.
A great deal of the stuff was bought
around top prices on margins of 10 to -
points The market broke through mar
ginaI protection and left many broker
age and commission houses hung up with
the goods. OF the houses that found
| themselves in a gap a good many hung
on, hoping that there would be a sharp
| recovery. which would enable them to
work out without loss. This experience
| has created d good deal of i'll will, and
has led to Il general comparing of notes
among the victims on the stock eX-
| change The conclusion which seems to
have been arrived at is that d mass Of in
| side stock WIS unloaded on a manipula-
| tive rise based largely on the wholesale
| and Industrious circulation Of misleading
| and false information OF course, no.
| body can complain about having been
stuck through believing in what might
| be stated OF the intentions Of the SUI
preme Court Of the United States. The
mere fact that sensible people should be
| fooled by that kind of advices would
| shut their mouths against public com
plant. If any of them should "squeal''
| the verdict would be- served EN- right"
Keene Makes Usual killing"
In this case everybody in Wall street
| knew what was going to happen in
Washington-and then it didn't happen
| that way. So far as can be learned.
there was only one man in Wall stree
who made a killing on the bear side, and
| that was Mr. Keene.
| According to gossip, he argued that even
| though the court decision might be as
| tipped off. the stock had enjoyed all the
advance it was entitled to ana that the
receipt of the best news that could be
given would be followed by taking
i on a scale sure to cause d break in quo
tations. He is said TO have cleaned up
more than $250,000 on a little line of TO-
900 shares or such a matter He just
! took little flyer. as it were.
| The real hurt from the 40 point break
| in Consolidated Gas is found in the fact
| that the slump forced SPECTATORS in that
stock to sell out other securities in order
to protect their accounts in gas The ef-
| feet was felt most strongly in the high
priced stocks Pkers did not NEEDLE
with gas to any extent, or if they did 1t
was on the thinneSt possible margins and
| they were wiped out the first crack out
| of the box when the stock broke %
| points in about three m nutes. Low priced
| issues were not Jared so seriously. The
reversal of the $4,000. 600 fine case
! against Standard Oil did not make much
of stir. It's importancn was overshadow-
ed in local sense. and in stock market
| Importance by the ga decision.
| Bull tips are suspiciously prevalent in
Reading. The wise ones had it tHat the
stock is going to advance 20 to 30 points
within the next ninety day. What basil
there is for the expec alton Of a big
! rise in that spr ciaity Is not disclosed. In
| fact every moment in Reading is found
ed on mystery. It has happened many
| times in the past that the talent ha
been shamefully dumped in Reading, and
in some quarters the be lef holds that the
doleful experience is to be repeated The
tactics employed now in Reading bear
points of similarity to those used in boost
ing Consolidated Gas from around 1O up
to 165.
Coal Trusts Case.
Inside information is af1oat that the
hearing in the governments suit against
the anthracite coal trust is going to be
exceedingly favorable to Reading and be-
fore long this fact will become definitely
known. This inside tip does not tally
with advices which come from other and
entirely disinterested sources. From that
point of the compass reports blow in that
the current of testimony Is very strong
ly against Reading. and that those who
look for a triumph for the coal trust or
any of the roads connected Herewith are
slated for grievous disappointment 1t is
! barely possible that the real insiders,
who ought to be 'in the know" are or
| ganizing a campaign to unload. Surface
symptoms are certainly suspicious.
| The strongest point looking to a re-
sumption and maintenance of broad
bull movement in stocks is found IN the
assurance of abundant and cheap money
during the early part of the current year.
Money Is flowing into New York from the
| interior at the rate Of $4,OOO.O0O to 5000
GOO a week, and as the end-Of-the-year
distribution Is over there is a general
sense of relaxation In this fiscal center.
! During the year 1908 New York gained
about $3.50 900 from the interior, a
total likely to be very materially in
! creased during the ensuing few weeks.
Inasmuch as railroads are not likely. to
| attempt the fiotation of large issues of
bonds except for refunding purposes and
the retirement Of floating Indebtedness.
there Is promise of a large continuing sur
/ -, f,, In iun