The Birmingham age-herald., 1909-09-12
JUGGLERY ON THE
 STOCK EXCHANGE Manipulation After Harriman'S Death Is Very Evident DANGEROUS ELEMENT GONE Situation in World of Finance Has ln- proved With the Passage of liar
 rinan and Better Times
 Are Expected.
DANGEROUS ELEMENT GONE
BY w. G. NICHOLAS.


 vance in Union Pacific and other ae- tive stocks Friday was impressive. Whether it will take away from or add to the store of public confidence is a debatable issue.
 MT Morgan Is credited with hay ing inspired and generated the tre- mendous move and there are many important people in the financial dis trict who question its wisdom. It was 50 obviously manufactured that no- body was deceived. The work was raw and the opinion was generally voiced that sober, second-thought op- orators and the public would be more likely to be frightened away than in- duced to come in. The important banking interests were relied on to come forward with supporting orders in the event of rush of sentimental selling, but there was certainly noth- ing in the death of MT. Hartman to convert a previously nervous stock market into wildly bullish one, yet Fridays exhibition of financial ath- lethics was clearly designed to create just that belief.
 In some Hartman quarters the jug elery on the stock exchange Is be- lieved to have concealed an ulterior intent to discredit Union Pacific with careful investors and traders and make it easier for pirates to accom- plish their black flag purposes with the Hartman treasuries. This theory seems to lack tangible backing.
 A fish-blooded construction the mar Iet manipulators would like to have the public put on the demonstration following MT Harriman's s death IS that the situation has been improved by the effacement of a dangerous ele- ment. Mir Harriman's passage makes for harmony in the world of trans portation and finance and in the mar ket place.
 The ghouls have the market" was the comment of a disgusted friend of the late magnate.
 The funny work" which has been done in the stock market lately has had one very evident effect. It has chilled popular enthusiasm. There Is not as big a public in the market as there was up to within the last cou- ple of weeks; nowhere near as big a one There has come upon the out side speculative world realization that the average of prices Is pretty high and that there may have been going on a larger volume of profit taking than had been commonly sus- pected. This is not easily provable, however. as there seems to be all most as great scarcity of real stocks.
 The floating supply appears to be small in almost every quarter; that s.. to thara iG OVGrWle lmln2 flood of stuff offering. It only takes moderate amount, however, to cause prices to break. Not alarmingly and not to the depths but sufficient to engender uneasiness and fill the market with nervous chills.
 People are asking themselves if it may not be true that the good things in the situation have been discounted sufficiently for the time being In the general advance which has already taken place. True, there has been some recession from top prices but the sharp and important breaks have been confined to few specialtles; al most entirely, as matter or 1act, to the Hartman issues and affiliated or connected stocks.
 Steel common is picked out Tor the market leader of the future. It is the most popular trading stock on the list and mas a degree of merit which makes II very attractive An impression prevails that there has been considerable shifting of stock ownership among the big interests lately Standard oil people are believed to have lessened their holdings materially and the Morgan party to have increased its lines heavily. There are many things which go to confirm this theory. The Morgan clique is very noisy and very 1nsistent in the claim that Steel common will cross par before the end of the year.
 They amass convincing estimates or business and earnings for the next year or two. They call attention to the fact that during the quarter-April, May and June-the period of cutthroat competition when prices were 8 to $5 lower than they are now and when corporation was only about 75 per cent capacity net profits were about s9O GOO 0O0 or S11 GOO more than fixed charges.
 With capacity running 95 per cent and prices back again almost to where they were before the cut if is very easy to fg- ure s39. .0000O0 to $40000 900 the current quarter and above s400Oo00 for the Ia quarter of the year For 191 on a capa- city of approximately IA 00,00 tons they figure over S20o coo, coo net earnings. This conclusion is reached by the very sim ple process of multiplying tons produced fy $15 The experience of years shows that the Steel corporation averages just : about sl5 per ton on output. The pros poet thus presented is one which Is an unceasina ''come on' for investors and speculators.
 The outlook for 1910 is for at least 20 per cent earned on the common stock and makes 1t practically certain that after the first of the year 1t will be put on al least a s per cent basis. with possibilt- ties for increase which certainly al- luring Surely 15 per cent surplus win not long be required to make up depleted accounts drawn upon during the last two years. The $4o,0C0 900 additional required to complete the Gary plant will also be made up long before the next year is 4 over. The common stockholders will then come into their own, and come a-whoop ing.
 While on the subject of United States Steel mention may be made of an inspired paragraph which is going the rounds to the effect that insiders expect the corpor- ation to do gross business of $1,OO0.0oO.0O .0Oc next year. For insiders to sponsor such an estimate or encourage its circulation speaks i'll for their candor. By the pecu- liar system of accounts in vogue in the ofices of the Steel corporation the total drures of gross business done are greatly !exaggerated. Material is bought and sold .9y subsidiary companies of the corpore- keson to each qther and these dealings fig A1.~ ea k~ <<tS