Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-08-08
BULLS IN MAJORITY
Bears in Wall Street Outnum-
bered Ten to One.
RAIDS HAILED WITH JOY
Rush to Buy on Every Recession
Forced Upon the Market.
NEW TARIFF LAW AND STOCKS
Thoughtful Persons Convinced
That an Era Of Great Business
Activity Has Opened.
NEW TARIFF LAW AND STOCKS
Special Dispatch to The Star.

ingly the stronger. looks with astonish-
ment and Impotence upon the preten-
sions of the bear faction that now is
the time to play for a big reaction in
prices. They cannot understand the
reasoning of the bears, and fail utterly
to realize why it is possible for a serious
break to occur upon the eve Of the
harvesting of mammoth crops and the
temperance of general prosperity. For
fifteen months the stock markets and
the general business situation has been
working up to what is now in plain
view, and why there should be break,
now that hopes and expectations are
Undertaking into facts, is incomprehensi-
BILE to the bulls. Railroad earnings now
at the beginning of the new era are
very close to where they were at the
climax of the last upward swing two
years and a half ago. Net results. are
comparatively better than they were at
the apex of the last boom, showing in
creased efficiency and more economical
operation.
The enthusiasts describe the status of
the industrial situation good times
revived-next year a veritable industrial
and business upheaval. They fully be-
lieve that the nation is embarked upon
a period of the grandest prosperity in
it's history. and that the next three or
four years at least will be one unbroken
upward swing and broad expansion.
Why, in the face of such facts as they
are able to mass in support of their po-
sition. should there be a serious setback
i'll prices, they ask, in scOrn So con-
fident are they that their judgment is
correct that they hail with expressions
of open satisfaction every raid on prices
made upon the floor of the exchange by
an aggressive bear contingent. They say
that every man who sells stocks now is
selling himself into hole and will get
his neck twisted before he gets out.
They courageouSly buy on every recess
sion that is forced, and thus far evinced
no weakness in any quarter either in
sentiment or Willingness to back opinion
with new purchases. This does not apply
to the old gray foxes of the street who
have been for several weeks scaling
down their lines, largely in anticipation
of tighter money during the fall and
winter months. They do not look for
any important declines in prices, but
have been carrying tremendous loads of
securities money borrowed from
banks. The point has arrived when they
are ready to share the burden with 9TH
ers. The Others are unhesitatingly
putting their shoulders under the load.
Notable Bull Signs.
Cnauestionably there is a large public
in the market, a public different from
anything ever before seen after a bull
market has attained the proportions that
this one has. One notable feature of
the grand bull movement of the last fif-
teen months Is an absence of pyramid
Ing. crime against safety almost in
Var1ably attaching to stock market booms
of long duration. That fact constitutes
an element of permanency to prices
which Is quite consoling to hold ars who
like to study technical conditions
Morgan Is again dominant in Erie. AS
matter of fact. he never was really out
Il
looked to many as though Hartman was
boss of the job. 1t SO happened that
when the powers that be were gently
showing Erie into receivership Mr. Harri-
man was at very important stage In
the development of the greatest bull
campaign the country has ever seen, and
the receivership plans in connection with
Erie ran counter to his larger market
interests. He therefore organized himself
into a rescue party. provided funds for
the relief of Eries necessities upset the
reorganization project harbored in the
Morgan office. and made himself such
temporary force in the company that he
carried everything before him for the
time being. Later developments proved
the correctness of his judgment in re-
gard to Erie, which is now earning al
most up to the top record of 1906 when
Soo.oOO.OOO was earned. The incident it
self gave Mr. Hartman added prestige.
and the money loaned Erie was one of
the best investments ever made not only
for the advancement of Mr.. Harrman's
private fortune. the rescue of Erie from
bankruptcy, but also for the general
good. 1t put d stop to many reorganiza-
ton schemes which were quietly under
way. and forced the financial powers to
do with other roads what Hartman had
done to Erie. Now that the rescue of
Erie served its purpose Mr.. Hartman
has practically lost interest in the sys-
tenn and its control reverts again to the
Morgan party.
The Farmer Investor.
We find much i'm Wall street literature
and oratory these days about the farmer
investor. II has been discovered that the
farmer. collectively speaking is very
rich and that having blown himself in
uxuries and personal comforts for awhile
must have money to invest i'm securities.
Consequently the producers and statesmen
for the stock and bond houses are turn
ing their attention to him. and preparing
to descend upon him with their mer-
clandse. Indeed. the claim is advanced
that the farmer investor has already be-
come large factor. and that he is even
now owner of a goodly proportion of
bonds and shares in circulation. Not
content with ownership of billions of
broad acres he is seeking partnership in
the transport ation and Industrial lines by
way of Wall street. In view of the pleas
ing fact that our own farmer investors
are turning their money into securities.
maybe American manufacturers and
statesmen will let the French small in
vestor' alone. What is the use of pes
tering the small fry foreigner to take
line of merchandise for which there
seems to be a growing home market?
Superficial discussion in the financial
district favors the idea that the passage
of the tariff law will be the beginning in
stead of the ending of tariff agitation
The more thoughtful people in the street
are not ready to subscribe offhand to
that theory. They are convinced in their
minds that we are entering upon a great
era of business activity, and that by next
spring or summer everybody will be at
work and earning good money, a condi-
ton conducive to contentment instead of
agitation and worry. In other words
they are inclined to think that the "com-
mon people will forget the present dis
satisfaction over the failure of Congress
to revise the tariff for the benefit of con-
SumerS.
College Financial Writers.
Twenty college and university gradu-
ates of this years vintage have broken
into financial journalism through Dow,
Jones & Co. s. Wall Street Journal and
"white-sip service" Harvard leads off
with six of its young men. Yale, Prince
ton. Dartmouth. Columbia and Toronto
furnishing the rest. .nost of them have
specialized in economics, and the natural
bent OF their minds directed them to this
field, some regarding it as sort of a
postgraduate course. some with honest
intent to make financial writing life
vnv-1 othn Nir,or To fi,I