The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-07-03
"C[EAN SMASH UP
IN WALL STREET
Prices Declines to Lowest Point
in Two Years
CAUSE 1NExPLA1NABLE
Report Has 1t That big Interests Went
Cunning for Each Other-For-
eigners Like New Railroad
Rate Law
CAUSE 1NExPLAINABLE
BY w. G. NICHOLAS

BY w. G. NICHOLAS
New York, July -(special)-The mar
ket just had to have clean up and
that is what it got. Seven successive
days of declining prices eliminated on
Wednesday and Thursday with grand
explosion and smash. When 1t
was over Wall street looked like a
slaughter house. Tt was full OF
dead and wounded and the wreckage
The break took prices down to the low
est point reached In two years and better
and the counters have not been so full
of, bargains since the panic of 1907 This
condition in the face of the fact that the
general business situation is healthy and
most people. The explanation that Is
satisfying to the ordinary understanding
has been advanced to account for the
heavy depreciation which has been going
along with more or less irregularity ever
since last autumn.
One reason is that the market has been
o~0Ai
cut up into cliques and factions and there
has been more or less jealousy in many
quarters There has been no harmony of
action. 1t was every clan for itself and
as a consequence the street was full of
friction. During the later stages of the
about big interests cunning for one
another.
Color was given to some of these
stories by the action of stocks and
groups of stocks more or less identified
with known banking houses and capital
lists. The Morgan stocks were under
pressure at one time, then it was the Har-
riman stocks, then the Hill stocks, then
the William Rockefeller group, and last,
but by no means least, the Hawley
stocks. These latter issues were subjected
to heavier pressure at one time than
anything else on the list, and 1t was of
common report that the chief Of this
combination was in for a drubbing.
Whether he got the licking or not is a
disputed point among the wiseacres. On
one hand it is claimed that he has been
will not be so great as he tried to make
1t after his acquisition of Chesapeake and
Ohio and Missouri, Kansas and Texas.
Another vigorously supported theory is
that he took bearish position In the
market two or three months ago, and
that instead of being trimmed as general
ly supposed he has made a great killing.
Which one of these theories Is right will
probably be shown by Mr.. Hawley's line
of action in the no distant future. If he
goes ahead with his ambitious plans of
railroad consolidation it will be proof suf-
ficient that he has weathered the storm
and it might Justify the notion that he
may have had hand in helping to or
ganze the storm.
St. Paul has been conspicuously weak
factor In the market situation. The ex-
pense of it's. Pacific extension has been a
great deal heavier than estimated and
the company has been obliged to do some
big financing under unfavorable condi-
tons and upon unfavorable terms. In
view of this fact and the additional fact
that the new mileage Is in strongly COM
petitive territory has thrown doubts upon
the ability of the corporation to continue
paying per cent dividends
The management has Indignantly re-
scented gossip suggesting the possibility
of cut in the dividend rate from Z per
cent to per cent and possibly s per cent,
and more than once Mr.. William Rookie
Teller has stood sponsor for the denials.
Nevertheless the decline in ST. Paul from
around 100 down below 115 seems to have
discounted the cut indicated and In a
measure to have proved the accuracy of
the forecast.
From around 145 st. Paul has led the
break In prices. The theory has been en-
tertaned for a good while that Mr.. Will
liam Rockefeller was really bearish on
the general market and he has been
charged by indignant bull spectators
with using st. Paul as club to pound
down the rest of the list This is the kind
of talk that is always INDUCED in on a
slumpy market and Mf. Rockefeller hap
pens to be the name that is more often
on peoples lips than anybody elses on
this particular occasion.
1t is undeniably true, however. that the
so-called Standard Oil crowd In the stock
market has been frowning and grouchy
for a good while. An especial sore point
is the attitude of the federal and state
governments and the judiciary towards
the Standard Oil company and it's auxilia-
ries.
Its spokesman have openly held that
general business could not improve per-
manently until the supreme court acted
on the famous Standard Oil case and this
attitude has not changed In the least by
reason of the mere delay ordered by the
court Possibly exaggerated Importance
Is attached to this case by the Standard
OIL interests, but there can be no doubt as
to how the leading men in that combina-
ton feel.
If the supreme court decides against
the corporation and orders it's dissolution
the insiders connected with 1t and In con-
troll of the greatest banking combination
in the United States have small hope for
the country. They talk as though they
really believe that the welfare of the ma
ton hinged onethat decision and that II
the court hold adversely to it the cor
porations Of the land will have to go
through the hardest period Of their exist
ence.
Those who are not intimately associated
with this group OF financiers try In vain
to argue them into the belief that they
are taking a mistaken view and that the
country will survive the disaster success
fully, as 1t has in many other and worse
ones.
This powerful interest has chung tena-
ciously to the attitude expressed above
and shows no signs Of change Of opin-
Ion. They may take this long decline in
prices as a vindioation Of their position
and hold off from further hostility. They
are a relentless party however, and may
not be satisfied until still lower levels are
reached in the grand plan Of educating
the public" That kind Of education is
very costly, but in the minds of the teach
ers it is necessary for. the proper dis
cipline OF. the popular mind