The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-06-27
FUTURE Of MARKET
IS NOT PROMISING
Ginger Is Lacking and Oper-
atoms Are Largely on
Scalping Order.
.RUMORS PLENTIFUL,
FACTS ARE SCARCE
Corporation Tax Proposition Con
sidered-No New Buying
Power in the Street.

| the weekly table viii convey an excel
/ lent idea Of the negative character Of
! the market There have been some SEN
| sational changes, but with the excep-
| ton Of a break Of So. in Union Pacific
! preferred and 90 in Western Maryland,
! these important gains and loses have
| not been in active stocks. Breaks have
/ been followed by recoveries and recov-
| cries by reactionary declines back and
| forth, with but scalping opportunities.
| Moreover the outlook is not favorable
| 70 any radical change from this condi-
| ton Of affairs until The big men who
hold. and will hold. the Wall Street
| business as in the hollow of their
| hands Clntil the bankers whistle down
brakes). shall find conditions just right
| for another hurrah movement
Mr.. Morgan is in Europe, Mr. Harri-
man is over there, and Mr.. Stillman has
! just returned. Judging from the signs
OF the times and the records of the past
| something may develop, If nothing more
/ than a rumor.
| Rumor has already indicated that
| something is coming, Union Pacific
plan for the benefit Of the holders Of
| the common stock being part of the
gossip, and il is backed by strong in
| side confirmatory information. Perhaps
| this rumor will make good
Steel is Safe.
The listing of a block Of Steel COM
mon stock on the Paris bourse was an
authenticated report. confirmed by high
authority, but it wasn't anything more
| than a rumor. and the chances seem en-
! tirely against 1t ever breaking into the
| exclusive circle. Had the Steel Cor
poration made the application 1t would
| probably have received favorable con-
| sideration-but 1t did not
/ The Steel Corporation can stand on its
own bottom without a listing Of its
! stock on the French bourse. 1t is ad-
| mittedly one OF She best managed cor
/ pOratiOng in business and the future Is
/ bound to see much higher prices-per-
haps not the immediate future-bgt to
the patient investor the returns viii be
ample payment for patience and tenn
porary uncertainty. The use OF steel is
| increasing, and the profits for the COM
| mon shareholders ere piling up and will
pile.
Put the Run,ors on Ice.
It would seem as Il this harvest of
rumors might IS well be put on the
/ ice and given chance TO hatch izto
| acJualities before thew were sprung on
/ an unsuspeeting public Perhaps a
/ market ike the one now working Its
way through the hot weather needs
I
| this and that serve to encourage the
/ big insiders 10 push the price list up,
and the room traders, professions. and
/ a few scalpers follow along leaving
/ stop-Ioss orders out behind their trails
| as a sort Of a life preserVer, because on
/ every advance the stock is fed out N
/ chunks.
/ No reference was made to the public
following. The public has long since
/ digested its speculative load and is in
/ tensely interested in-keeping cool. The
| public is too good a scholar. 1t mas
/ learned its lesson, the lesson OF IsOl-Oi,
and has tired OF laying the other Eel
/ lows game. But the public is buying
/ bonds-lots Of them.
The Tax Proposition.
/ The market is paying a large amount
/ Of attention to the 2 per cent tax on
! net earnings. When the subject was first
! preached the Street accepted just as it
/ did Government control Of railroads, the
decision in the Northern Securities case,
/ etc, II did not like it. but the market
\ had TO be held up, and 1t was there
/ fore Indifferent. The cents out Of
/ every dollar, and the supervision or ac-
/ counts and bookkeeping under Govern
mental orders will cut material hgure
! in future OperatiOs should II become
/ Iaw-and the chances seem very strong
/ ~ IN favor OF It. Before the Hepburn
| law the keeping of accounts IN a great
/ railroad system was IA from being the
complicated thing IT IL nOw-everyt hing
/ is done by rOte, every item divided into
/ its component parts as TO the proper
/ places TO put each cent-under the direG-
/ ton Of a distinguished statfStician or
mathematician. That this or some other
! complicated method OF keeping accounts
/ will be enforced ia corporations seems
/ likely. The annoyance, tho 2-cent-tOucn
together will raise many unpleasant sit
uations, and IL is having Its effect on
/ conditions It may all ne avoided, and
| it would be good for the market II 1t is.
| Railroad earnings are holding well
showing. liberal and steady increases.
Money is easy and plenty. The loans
of the New York banks have been re-
/ duced appreciably.
The crops are the hope OF the market.
They are doing splendidly. and much Is
expected of the report that will be
sent out by the Agricultural Depart
ment. July 8.
Tariff Making Nears End.
The making OF the tariff. so far as the
Senate is concerned, will be over this
week-in all proba billy. The conferees
will settle many disputed questions, and
until II Is out in toto there isn't much
use specializing on 1t. It took six
weeks TO get the Mckinley bill out OF
conference. 9. If the House was to have
the opportunity to debate and vote on
some Of the disputed points, II would
take as long to get the Aldrich bill out
ibut 1t will not.
DT. CleWS OplnlOu.
Dr.. Clews says Of the proposed 2 per
cent tax;
The great bulk Of smaller corpora
lions are private concerns. To compel
them TO file sworn statements OF their
business to the Government, with the
chance Of leakage through bribery, TO
rivals put into the law its most objec-
tiOnable form or Government espionage.
1t is TO be hoped that this proposal will
! be defeated. In fact, it is doubtful if
so astuTe a politician as Senator Aid
lrich really expects its adoption. The
most desirable form Of taxation Is q
stamp tax.
II Is known that Senator Aldrich is
for the corporation tax simply as a
means Of defeating the income pro-
vision II viii help the market II the
| corporation tax Is beaten.
Lastly.
When all Is summed uD. it is perhaps
the proper time to close with the re-
mark that prices for stocks are high,
and that no new buying element of con-
IL In 81 =