The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-12-05
WALL STREET SLOW
TO FEEL ACTIVITY
Sugar Scandal and Copper
Deal Cause Trouble
STREET Is HARD HEADED
Has Been Stupid Enough to Believe
That Taft Proposed to Back
Down on All Done During
Last Decade.
BY w. G. NICHOLAS.

New York, December 4-The stock
market is still somewhat out of harmony
with business conditions and develop
ments. Solvent people who are In the
thick OF actualities are In every way
satisfied with the business and Industrial
situation. Every wheel is turning and
books are full OF orders. There are few
localities where the merchant and the
manufacturer cannot get ample accom-
modations from the banks at reasonable
rates and for such time term as may be
desired. Broadly put. trade. and money
conditions leave little to be desired by
those whose demands and expectations
are within reason.
In the stock market, however. matters
are not running along quite as evenly
satisfactory. Various things have oc-
CURED to make the price line irregular
and In some places even ragged. For
instance, the sugar scandal has caused
the stock OF the company chiefly interest
ed to lose 20 points or more within the
last fortnight and 1t will not be strange
If there should be a still further shrink
age In quotations. The great mass Of
stockholders are of the investor class
which is slow to move, but once the
leaven of suspicion gets at work among
them there is almost certain to follow
gradual liquidation. Clean-minded people
have natural dislike to prolonged as
ISOLATION with a tainted corporation and
instinctively pull away. That Is what is
going on in sugar stocks at the present
writing. Added to this moral phase Ia
the further feeling of uncertainty as to
the ability OF the company to maintain
dividends. now that channels of corrup-
ton revenue are closed Another dis
turbing factor was uncertainty as to the
future Of the pending copper merger
From the inside came a continuous
stream Of inspired statements that the
negotiations would proceed and the deal
be contaminated practically along lines
originally framed up. It was added in
almost every bulletin that while such
would be tho outcome there would be no
further talk of the arrangement being
made to restrain production Of copper or
have any hand In regulating price. Far
be 1t from the minds OF those who are
engineering the deal to do anything to
check the mining industry or to prevent
buyers from getting cheap metal The
proposition was being put through on
strictly benevolent lines and was intended
to be Of untold benefit to the general
public. This kind of drivel was issued
with every appearance of seriousness and
expectation that the statements would be
believed Nevertheless, the laymen had
difficulty IN rsconciiing their intelligence
to many of the inspired reports In cir
culation. They could not understand how
1t would be possible for the organizers Of
the deal to put It through as designed
without fragrant violation of the anti
trust laws as construed by the courts
This feeling Inevitably led to heavy and
general selling OF speculative stocks and
to considerable short selling by the bear
element. All Of this contributed to a
serious decline In the copper and allied
stocks and to weakness in the whole list
The market has not yet entirely re-
covered from the effects Of this liquida-
ton, but 1t is getting In shape again and
Improvement is already setting in. The