The Birmingham age-herald., 1910-01-16
MORGAN BEHIND
 STOCK SELLING No Combination Is Able to Go Against This Financler sYNDlcATEs IN BANKING Wall Street Has Enough To Worry Over. Now In Congress Without
 the Troubles That Exist
 About Bank Mergers.
BY w. G. NICHOLAS.

BY w. e. NICHOLAS.
 New York. January 1b.-The people in Wall street who make 1t their business to keep posted on what Is going on in the stock market say that very large percentage of the ''inside" selling of stocks during the past two weeks has been by the Morgan party. The fixed belief that such is the case has induced many others to follow suit with the re- suit that the market Is filled up with stocks to a greater extent than at any time in many months. This situation has caused no little uneasiness and those whose interests are at stake are seeking an explanation.
 The best 'dope'' they get is that the Morgan following has been obliged to part with large amounts of securities in order to raise the money with which to go into the many things that the Nor gan house has allotted them. It is high treason for anybody to turn down oppor- tunities presented by the Morgan estab- lishment to go into deals of one sort and another which may be undertaken by these great leaders of finance. It therefore comes to pass that those who are on the list want to sta ythere and will let go of almost anything they have in order to make good on commitments made in their names or tentatively for their account. It thus transpires that reams of stuff which had been gone into for investment or speculation have been added to the floating supply of securities in the street.
 No combination is strong enough to go out and do things which MT. Morgan and his associates have been doing the last month or six weeks without being obliged to go down Into their strong boxes and dig up cash or stun that can be converted into cash. It will be re- called that the Morgan group of finan- ciers has been very busy lately buying insurance companies, banks and trust cmopanies. 1t is easy to conut up an outlay of approximately $25o o0oo 900 in the taking over of these properties. The money had to come from somewhere, and beyond any doubt a considerable part of 1t has been taken out of the stock mar. ket. Large quantities of Steel common and preferred have been thrown on the market and the same is true of New York Central, Pennsylvania, Union Pa- cihc, Southern Pacific, Southern Railway and. in fact, almost everything on the list.
 Coincident with the alleged discovery of heavy selling for the Morgan account has arisen accentuated criticism of the grand scheme of bank and trust company amalgamation. In my last letter refer ence was made to the growing feeling of dfsquiet over this most recent develop ment of banking combination. This feel ing has been intensified on account of tho coincident stock market development and tho wasting away of prices. The thoughts of men have been infrequently turning to the menacing features of tho movement for the standardization of bank control. Evil-minded people. without rev. erence or fear of the lords ..of high themselves that they arc ircept to sec much real difference e31 chair. hegree, between the buying of kx. tb. Abanks and trust companies bx Morse Heinze-Thomas syndicate aiZy sombi- nation of capitalists operating in the higher realms. They even go further and say that the danger to the community and to the well-being of the country at large is greater by the larger operations
 
 them to figure that if the Morse outfit, with its tens of millions of dollars back ing, constituted a menace to the safety of tho financial community, then MT. Morgan and his friends, with their hun dreds of millions, are infinitely worse. This idea. while not talked about freely by men of affairs, lest they come in for discipline, Is nevertheless one of tho chief themes of quiet talk among friends in ho tsoc c1r If Hop pkf fy,er and counting rooms. The fear is that one of these days the populistic element in Con- gress and the state legislatures may take it into their heads to start a cru sade against this phase of Wan street history making.
 Wall street has enough te worry about without having to take on this added load just now. The Presidents message looking to sti1l further regulation of cor porations and the manifest willingness of Congress to follow his lead is vexa- tious enough, to say the least. and has put chill on the glowing optimism in many quarters heretofore looked upon as the backbone of bullish action and senti- ment in the stock market. It is like knocking tho legs out from under them to discover that political sentiment is over whelmingly against the 'let us alone'' policy. To have the statesmen turn their batteries on an alleged money trust with headquarters in Wall street would be too much, and that is just what is felt to be likely to happen.
 People with memories are drawing com- parisons between the enormous Morgan activities now and during the boom fiota- ton period which climaxed disastrously in the organization of the International Mercantile Marine. At that time the English press jumped on Mir. Morgan in tho rawest way imaginable for buying steamship companies at two or three times their actual value It is not charged openly that in the present case he has paid too much for some of the into his combination. but 1t is certain that a good many Of them came to him very easily and in such manner as to suggest an entire willingness to pay asked prices without haggling a minute. Mir. Morgan Is a mold man and has no time to wast0 over trivialities. The fact that he h 50 far advanced in years is another matter which is often unpleas- antly referred to in connection with gi- gantio combinations being formed under his banner.
 Tho disciplining of two members of the stock exchange for the part taken by their firm in the recent huke in Rock Island has been topic of excited dis cussion al! through Wall street. The general view Is that the suspension of the two members was punishment too severe or else not harsh enough. It