The sun., 1910-01-09

FOR all the Hawley roads fell fiat because
the Presidents message dismissed the last
chance OF an amendmen Of the Sherman act,
A mere glance at the map shows some Of
the Hawley roads plainly competitive
with others and places the.reported merger
under the han Of the law A merger CONF
pany organized In such open and fragrant
violation OF tho law couldn't sell a bond or
share OF stock anywhere.
With the big Hawley merger out of the
question possibilities OF Hawley merger
stories nevertheless remain. As copper
merger stories were divided intu three parts
after the Standard Oil decision. so lt.I .Is,now
necessary TO divide Hswley merger stories
II the element OF plausibility IL To be secured.
as with the copper merger one big merger
Is clearly illegal. hut the same objection does
not apply to two smaller mergers. The
competing Hawey roads are the Chicago
and Eastern Illinois and the Alton in the
North and the Frisco and Missouri. Kansas
and Texas in the South. No merger con-
tanning both OF the. North roads or both OF
the South, roads could become en- ective
but two mergers with one OF the North and
one OF the South roads in one holding COM
pany and the others In another might easily
pass through Washingto Thus the Sher-
man act simply dsmpens and doesn't de-
stroy all the speculative possibilities OF
the Hawlcy lines. "
BESIDES the Stock Exchange house which
banded the big Rock Island order on the
day of the scandal the exchange authorities
have called up house not so well known
which figured rather conspicuously In the
days doings. When the stock -was at the
top ot its 80 point advance this house. II Is
alleged. bid 81 for 1000 shares, as compared
with the high price of sits, For some mys-
terious reason the house didn't get its stock.
and for reason equally mysterious It sold
i,oO shares at 70. The governors want to
know why. They want to be told why bona
fide bidder for 1000 shares should turn
seller OF an equal amount after the stock
had gone down points from the bid price
aud without getting any stock meanwhile,
up to the present explanations have been
none too satisfactory.
Avowedly the. new rule Of the Console
dated Exchange Is designed to conform
with one OF the suggestions OF the Hughes
commission. IL provides that all bids or
offers in lots exceeding 100 shares must be
filled by accepting any part OF such bid or
offer In 100 share lots. The suggestion OF
the commission was that any one wanting
to buy or sell an amount equal to the unit
OF trading had a right to accept a portion
OF a buying or selling offer made In multi
piles OF the unit. IL considered bids to buy
or sell all or none Of a large lot unfair to the
small trader. The Consolidated Exchan ge
announced that its new rule cOnformed with
the suggestion and II was therefore in
ferred that traders on the little board had
got I'm the habit of trading in multiples Of
100 shares and that the unit OF trading had
been changed from 10 shares to 100 But
II was learned that such is not the case.
The average price OF stocks is just about
where II was a month ago. An occasional
lfuzy ard Fnn M nvEsh N has mn nAa
some headway and once or twice selling
movements have carried prices downward
with considerable rapidity. But In every
case something has happened 70 check
both the advances and the reactions before
more than a fair profit was possible except
to the most alert and experienced traders.
For the rank and file of the customers
in the commission houses the month has
been unsatisfactory. They have had to
pay carrying charges without any appre-
citation OF average values and more and more
of them have lost patience and closed out
contracts as the days have passed. Last
week particularly disappointment was
acute. for nine out of ten customers ex-
pscted a bulge In the first week OF theyear
aud held stocks in anticipation OF IL. One
result has been that the number OF stocks
carried by the commission houses was
smaller at the end than at the beginning
of week in which the reinvestment
demand ordinarily brings about an increase
-
All the legal and constitutional experts
in all the brokerage offices were trying to
make out what the President meant in the
portion OF his message relating to railroad
ownership or stock in competing lines.
ga II .l.em expressed a clear enough
opinion to satisfy any OF their customers.
.,,mui.,.d HttIe sDecuIation Although the
nn,ninn w.s general that n was on this
r1a,,sr ,ha, the raiIroad nre.idsnts eY-
nrsssad their most emphatic opinion. IN
,ha,- con,.rence with, the President and
49, ,her.snrs m. racomrnenda tion rsgsr ~.
~, o-Snarshin m stock was the most i'm
ncrtant hing in the message from the
s'aoS,,,,int If ne trader Iooking for snecisi
eTnor,uni,,es :
"'''O
The Presidents concluding qualification
created most OF the confusion. In It he