The Birmingham age-herald., 1910-07-10
RESCUE EFFECTED
 IN WALL STREET At the Point of Utter Demoral- ization of Prices OUTSIDERS "SHOO'D OFF" Disciplinary Methods Directed mt Ad- ministration and Congress Ef-
 fected Nothing But to De-
 stroy Values
OUTSIDERS "SHOO'DOFF'
By ". G. NICHOLAS

New York. July 9.-(Special. )-Not until the market approached dangerously near q state of utter demoralization did the Hood of inside stock stop pouring out, and not until then did the great money combination in Wall street come to the relief of an overstraned situation. The rescue was effected on Wednesday but even then the big interests made it clear ly understood that their heart was not in the movement and that they only gave the market support at the urgent de- \ mands of a frightened stock exchange J membership.
 The decline had gone to such an ex- treme that customers stopped putting up more margins and 1t became evident that unless something was done to check the decline there would be fresh deluge of stocks for miscellaneous account. This was carrying things too far and the money combine was forced to hold out a helping hand. Whether the aid that was extended makes permanent turning |, point or is only temporary. remains to be seen. Opinion on that point is slightly at variance.
 eral times investors have evinced a
 
 a large scale and every time they have been 'shood off" They were confronted with evidence of continued selling on an , enormous scale by insiders and were given to understand that by holding off they could get stocks cheaper. Repre- sentatives of the great monied and cor poration interests were out spoken In ex- precision of bearish views and by their attitude not only checked the buying im- pulse but actually gave encouragement to short selling
 The market could not stand up against an avalanche of long stocks supplemented by free speculative offerings. Within the day or two the literature of some of the strongest private banking and. eommis- sion houses has contained specific invita- k ton for investment capital to come in Heretofore advice of that nature has been lukewarm and full of conditions which in themselves tended to scare away people and lead them to defer operations.
 Since the decline in the stock market commenced late last autumn there has been shrinkage in the market price of railroad and industrial stocks and bonds amounting to s4,ooo 100000 according to the statisticians who. have gone Into the mathematics of the dSse. The decline | dates from the sale of large blocks of inside stock about the time MT. liar riman died, or soon after, and has kept right along with only occasional halts and recoyeries down to the present ' week
 The losses during the early stages of the down movement were due to the in- ability of the market to absorb the heavy volumn of stuff that was sold by the insiders, but for the last three or four months the shrinkage is traceable to more definite and specific causes The 1 fraDy attitude of the great banking in- terests became hostile to prices Leaders in the world of high finances assumed pose of angry disapproval of what was going on in politics and the courts of the land.
 -s They proclaimed from the housetops 1 that the attitude of the administration and of Congress and of the Judiciary threatened the stability of property and | was an injurious and baleful persecution :. of railroads and industrials. According 1 to their announcements the D yiiticians \ and the bench were engaged In relent- : less warfare upon national prosperity and they would have to take measures for sef-protection.
 These measures took the form of re- 1 lentless attack upon the value of pro- perties over which they exercised con trol. It seemed necessary for them to | give the politicians and the country an object lesson. The stock exchange was the stage and the terrific break in values l was the lesson.
 Now that the discipline has been duly | administered the financial powers that are awake to the unpleasant discovery that the only thing they accomplished was the destruction of values. The ad- ministraton and Congress went right ahead carrying out the programme out lined, and so far as can be seen no rail- II road or no industrial corporation has been really injured in the slightest de- gree.
 The railroad rate law which was the crowning act of Congress and of the ad- ministration looks as though 1t might be benefit instead of an injury to railroads and an inspiring source of confidence in stead of distrust to investors at home and abroad.
 In fouing their own nests the captains of high finance and of industry have done no harm except to themselves and to the stockholders whose interests they have betrayed. Whatever of reaction there may be in manufacturing and commerce is directly attributable to the object les son campaign conducted by Wall street for the plainly advertised purpose of satisfying the President. Congress and the courts that ruin will ensue unless the corporations were let alone.
 p1 Now if these captains of industry and ktheir faithful followers will let business
 
 some of the ground which has been lost. The next few weeks will show whether or not they intend to do this or to con tinue the policy of intimidation to still further lengths.
 The last 20 point break in the stock market proves what they can do when they go about it In combination. It may mot be beyond their power to force prices. ldown another 20 points unless convinced Ithat such a policy would be rank suicide lfor themselves and their friends, without Elaccomplishing the purpose intended. |I Every important recent development | ltends to disprove' the chief claims that have been advanced by the preachers of line gospel of ruin and calamity. Dur ling the first 10 days of July there has Ibeen disbursed over $200,000,00O in divi- Idends and interests on corporation stocks land bonds, a larger sum by $1S,0000O0 Ithan was distributed during a corre- Isponding period year ago. This great Isum represents the available surplus |earnings of organized business during the |. first six months of the year. less the large scattering amounts which have !. been paid out on the first of each inter- l lvenine month since the first of January Each of these minor payments was 5 Ialso an increase over the corresponding T month of 19O9 The reports of railroad l earnings right down to date show very kkarge increases over last year. In most leases this increased income has been l,aten up by greater cost of operation, | but there still remains reasonable