Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-11-20
Insurance Companies and Others
Hold Bonds and Stocks.
BIG NOISE ABOUT STEEL
Business Has Not justified Activity
of Stock on Market-Wash
Sales Suspected.
BY W. g. Nicholas.
ial Correspondence Of The Star.

ing the work preliminary to the window
dressing" which is one OF the recurring
features Of the market toward the end
or each year. Insurance companies, saw
ings banks and fiduciary institutions Of
all sorts are either heavy owners or
heavily interested In bonds and high-class
STOCK. and they like to make as good
showing as possible OF assets in their re-
ports which are compiled at the end Of
each calendar year. The men in control
OF the banking and stock situation are
also In control Of insurance companies,
savings banks. trust companies, etc.
1t is an association Of capitalists mu-
tually interested In putting their best foot
forward with the public and bidding for
renewal Of popular confidence in their
sagacity and wise business MANAGEMENT
Of estates and institutions Hence the
Willingness in the most influential Wall
street quarters to have the good work
go OH of marking up security prices, In
cldentally to a continuance Of public faith
and esteem there would naturally be a
broader bond nlarket, something which
will be greatly needed if the railroads
are to carry out their ambitious schemes
Tor next year-schemes which will cali
Tor many hundreds Of millions of dollars
OF new capital on fresh output of bonds.
Market Easy to Handle.
The market has been one very easy
to handle by the syndicates. 1t has
been Kept within restricted range, spec
ulation has been repressed except in
the few specialties and no very large
amount OF capital has been required to
finance the campaign. Activity has
been confined largely to handful of
so-called speculative favorites, United
States Steel common always leading
This has made the juggle easy. Isl
is reasonably certain that a good share
OF the large volume of trades in Steel
Union Pacific and Reading. as well as
In Copper and Shelters, represents
nothing but wash sales. the origin of
both buying and selling being the same.
OF course there is no absolute way to
prove this. but the manipulation is so
tatingiy characterize the play as 'Iaun-
dry work" 1t would be taxing credul-
ity 20 far to expect anybody to be-
lieve that these three stocks would
average 80 to 20 per cent Cf the total
transactions in a list of more than
genuine. AS matter of fact. manipu-
lation in these three stocks has been
fragrant for weeks and months past.
especially Steel.
big banking interests are not entirely
harmonious as to the desira bility of car
rying on the bull campaign very much
further in the face of acknowledged
business depression in every direction. At
the same time those who are at heart
against prolongation Of the play are for
the moment holding oft for the reason
given in the opening paragraph of this
letter-end OF the year window dress
ing" The great interests appear to he
in a state of truce and are for the mo-
ment subordinating their personal feelings
to the general good Of the street. In
the background there is growing bear
ish sentiment and growing belief that
quotations will work very much lower
before a great while-possibly during the
first quarter OF 1911. Every year earnest
effort is made to lead the public to ex-
pect January boom. and in three cases
out Of four the boom fails to materialize.
About the only reason to expect bull
movement in stocks after the first OF the
year Is expectation of a wholesale rise
in freight rates.
Washington Advices Contrary.
from inspired sources continues to ring
the changes on the claims that the in
terstate commerce commission will surely
grant the demands of the railroads when
they hand down their decisions in Feb
ruary and the months immed ately fol-
lowing. This line of educational work is
based on the assumption that suffi-
cient number of commissioners have let
their predictions become known to make
a forecast Of official action reasonably
safe. The phrase most frequently used
| in this connection is that the railroads
have made very favorable impression
on the commissioners.
| This statement does not harmonize
with Washington advices which are COM
| ing to those who really want to know
the facts and who have means Of as
pertaining the facts. The burden of really
| reliable information from Washington is
| that the railroads have distinctly not
| made a good impression and that the at
| mosphere about the headquarters of the
| interstate commerce commission is not
one of unblended friendship for the car
| riers 1t will appear tfat they have pref
generated by the shippers in the presen-
tatiOn Of facts and arguments. There
| may exist some broad reasons of state
| why the railroads should be favored in
| their demands, but, on the other hand.
| there is q strong feeling that the compiS-
| sioners will be influenced to a very con-
siderable extent by the inharmony of
raising the cost Of transpor a ion, when
| every business tendency is for economy
and restriction and for lower prices.
Railroads Doubt Outcome.
| 1t is very evident that the railroads
themselves are not feeling at all certain
of favorable action on their appeals for
permission to raise the rates. They are
pursuing hand-to-mouth policy and are
holding in allegiance every large project
which may have been tentatively agreed
| upon or be under consideration. Great
ado is made over the placing of few
orders for steel rails, and columns of
space have been consumed in recounting
! the details of orders for the week aggre-
eating as much as 5000 tons Of rails.
| The big steel trust alone could fill trat
| order in four or FIVE days.
| ootxx