Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-01-09
PUzzLEFOR TRADERS
Cannot Account for Current
Market Tendencies.
AN ABSENCE OF COURAGE
Profit Taking Led to Unloading Too
Many Stocks.
SEVERAL DISTURBING FACTORS
Further Concentration of Money In
terests a Menace to Speculation
and Investment.
SEVERAL DISTURBING FACTORS
Special Correspondence OF The Star.


The stock market has been slow in get
ting itself together after the holidays
1t is somewhat ragged and it's behavior
suggests a case Of nerves on edge. APP
parently there has been as yet little Of Inc
anticipated reinvestment Of funds dis
tributed on or about the first of the
month in dividends and interest. sum
estimated at more than $3.50. 100000 in this
city alone-that is to say New York
was the distributing point for the income
TO that total.
Traders have been puzzled somewhat
to account for the current market phe-
nomena. There seems to be in the back
ground an absence of that aggressive
courage which so stimulated the market
up to within Il couple of months ago 1t
Is quite likely that the stocks unloaded
by the profit-takers at the elimination
of the great bun movement have not yet
been dlgested. To use Il phrase often
heard on the stock exchange the mar
ket still seems to be full of stocks =
Every time prices harden and the mar
ket looks as though it might be definitely
headed toward higher prices o..erings of
the real goods appear in quantity from
some source not positively locatable.
Whenever the market gets in that sort
of condition the volatile and keen
Wftted professionals conclude that the
act In accordance with this theory The
market becomes flooded with speculative
offerings on top of the selling Of the real
article. Something of that kind has been
going on since the first of the year, seem
insly.
Several things have happened to breed
uneasiness. News from Washington has
not been altogether reassuring. The re-
ception accorded the delegation of six
railroad presidents, who invaded the
CO srtH n rT.,fx
fit of unsolicited advice as to how he
should frame his corporation and Sher-
man Jaw message to Congress was the
hrst chill. 1t gave the street warning
that possibly Washington might not be
in entire sympathy with the let us
alone policy which the interests
thought was going to prevail during the
next three years. If the White House
visit was really as much of a feeling
out expedition as it was visit to give
wise counsel then the errand may be
said to have yielded results These re-
suits may not have been just what was
looked for, but they We're sufficient to
clear the atmosphere of misunderStand
ings and false ideas as to what could
be looked for in a political way.
Government Inquiries.
Clearly neither the President nor Con-
gress can be depended on to stop the
energetically inaugurated under the
Roosevelt regime. The tariff may not
be meddled with, but very clearly the
political forces in control are not going
to fold hands and sit quietly. giving 1.-THE
interests" a free field to formulate and
carry out plans for cOmbination and
aggression. The discovery Of the actual
Washington situation undoubtedly leaves
bad taste in the mouth of Wall street,
a &c do IN
put a cheerful construction on the Presi-
dents message. which was forecasted in
the street freely in anticipation of it's
actual delivery.
Another feature which has been deeply
disturbing to the general business inter-
ests, although widely advertised as d ire
mendously bullish factor. has been the
steady progress made for a consolidation
of the great banking interests. feeling
finds unwelcome Judgment in the minds
of many thinking people that such
combination that now being organized
Will become deadly menace. Under the
guiding hand and benevolent control of
the unselfish and unambitious Mr.. Nor
gan no harm could come to vested inter-
ests and legitimate enterprise. Mr.. Nor
gan. however. is an old man, and it may
be that his heirs and assigns will not
look at things in the broad and beamng
live and let live way that has always
distinguished his operations. 1t may be
that future autocrats of the financial COM
bination will want to run things with a
high hand. They may have selfish inter
ests to advance or VenSeanceS to wreak.
few years ago when John w Gates
was learning his lesson in Wall street
he announced as sage conclusion that
anybody intending to go into business on
a large scale would be committing finan-
cial suicide unless he learned In advance
that the enterprise would meet with the
favor of the Standard Oil magnates and
the banks and insurance companies In
their control. If Mr.. Gates was right
in his estimate then the situation would
be much more dangerous under the new
order of things. for the money powers
of this country are great deal more
closely concentrated now than ever be-
fore. Not only is this the case, but the
tendencies are In the direction of still
further concentration. incidentally, also,
that remark of Mr.. Gates might throw
a sidelight on his astonishing activity in
the Texas oil field in apparent compet-
ton with the Standard Oil. Is he really
fighting that gigantic octopus or did he
take the precaution to gain the advance
approval of his alleged rival?
Rock Islands Behavior.
Still another disturbing feature in the
stock market is a suspicion that the sep
aration of the Rock Island and San
Francisco systems left the factions in i'll
nature toward each other instead of all
being ideal harmony. The eccentric be-
havior of Rock Island and some Of the
other stocks within the sphere of inf1u-
ence of members of the powerful and
hard-hitting Rock Island group has given
enough color to this suspicion TO loose
the tongues Of the gossip mongers Of the
stock exchange section. In the absence
of definite Information as TO the inner
plans of the Rock Island and Hawley
groups the professionals have felt free to
put any kind of Il construction they
pleased on what might be going on be-
hind the scenes.
Last but not least is the general move
ment for higher wages. There is COM
mon recognition of the theory that there
is no escape on the part of employers to
grant the demands of labor for q; larger
share OF earnings. This conclusion is
still further strengthened by the recent
very general discussion of facts bearing
on the higher cost of living The need
expense account dovetail together and
produce a sentimental effect which rail
road Arrangements and other large en-
ployerS find it impossible to stand
against. Anything like wage concessions
demanded will find immediate reflection
in the net earnings of corporations
whose stocks are listed on the exchanges.
Altogether the big interests behind the
stock market do not find all things to
Element and hence the explanation for the
failure of the stock market TO resume
with promptnesS and unbroken stride the
onward and upward move which in
terrupted late last autumn. There is,
nevertheless, continual investment of
surplus capital in stocks OF every descrip-
ton The speculative feeling is that