Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-01-16
FILLED WITH STOCKS
Overloaded Market CHARGED
to Morgan Party.
SELLING TO RAISE CASH
Disquiet Over Trust Company Merg-
ing Schemes.
FEARS OVER LEGISLATION
No Indications for Future Easy
Money-Many Demands for
Available Funds-Gossip.
pccial Correspondence Of The Star.

ing 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 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 Morgan
mouse has allotted them. 1t rs high treason
Tor anybody to turn down opportunities
presented by the Morgan establishment
TO go into deals of one sort and another
which may be undertaken by these great
leaders of finance. 1t, therefore. comes to
pass that those who are on the list want
to stay there and will let 20 Of almost
anything they have In order to make
good on commitments made in their
names or tentatively for their account.
1t 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 the things which Mr.. 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 stuff that could
be converted into cash. 1t will be re-
called that the Morgan group of finan-
ciers has been very busy lately buying
insurance companies. banks and trust
companies 1t is easy to count up an
outlay of approximately $3.50 900 In
the taking over of these properties. The
monye had to come from somewhere,
and beyond any doubt a considera BILE
part of it has been taken out Of the
stock market. Large quantities of Steel
common and preferred have been thrown
on the market, and the same is true Of
New York Central, Pennsylvania, Union
Pacific. Southern Pacific, Southern Rail-
way. and. In fact, almost everything on
the list.
Amalgamation Criticism.
Coincident with the alleged discovery
of heavy selling for the Morgan account
has arisen accentuated criticism of the
grand scheme of bank and trust COM
pany amalgamation In my last letter
reference was made to the growing feel
ing of disquiet over this most recent de-
velopment of banking combination: This
feeling has been intensified on account of
the concident stock market development
and the wasting away of prices. The
thoughts of men have been infrequently
turrfing to the menacing features of the
movement for the Capitalization of bank
control
Evii-minded people. without reverence
or fear of the lords of high finance. are
going about saying among themselves
that they are unable to see much real
difference. except in Degree between the
buying of chains Of banks and. trust
companies by the Morse HENCE Thomas
syndicate and a combination OF capital
lists operating in the higher realms. They
f,t~t 1r,I <1nyx
ger to the community and to the we'll
being of the country al large is more en-
dangered by the larger operations than
by the smaller.
If the Morse outfit with it's tens of mill
lions of dollars backing constituted a
menace to the safety OF the financial
community. then Mr.. Morgan and his
friends with their hundreds of millions
are infinitely worse This idea while
not talked about freely by men of affairs
lest they come in for discipline is never
theless one of the chief themes of quiet
talk among friends in the back rooms
of banking houses and counting rooms
populistic element I'm Congress and the
state legislatures may take 1t into their
heads to start a crusade against this
phase Of Wall street history making.
Washington Vexatious.
w dIl SliCct HAS SHouSl 10 WOTIy ABOUT
without having to take on this added load
just now The Presidents message look
ing to still further regulation of cor
porations and the manifest willingness of
Congress to follow his lead. is vexatious,
to say the least. and has put a chill on
the glowing optimism in many quarters
heretofore looked upon as the backbone
of bulish action and sentiment in the
stock market. 1t Is like knocking the
legs out from under them to discover that
political sentiment is overwhelmingly
against the let-us-alone policy To
have the statesmen turn their batteries
on an alleged money trust with head
quarters 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
PARSONS between the enormous Morgan
activities now and during the boom fio-
tation period which climaXed disastrously
in the organization of the international
Mercantile Marine. At that time the
the 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
and trust companies taken over into his
combination, but 1t Is certain that a
good many Of them came to him very
easily and in such manner to sug
SeSt an entlfe Willingness TO pay asked
prices without hagglins a minute.
Mr.. Morgan Is an old man and has no
time to waste over trivialities. The fact
that he is so far advanced in years is
another matter which is often unpleas-
antly referred to In connection with gil
gantic combinations being formed under
his banner.
Brokers Disciplined
The disciplining OF two members of the
stock exchange for the part taken by
their Arm In the recent fluke in Rock
Island has been a topic Of excited dis
cussion all through Wall street. The
general view is that the suspension of
the two members was punishment too
severe else not harsh enough. 1t was
a compromise verdict and, like most COM
promises, gives general dissatisfaction
Admittedly the two members have been
made scapegoats III the hope of molli-
flying populace supposedly enraged be-
cause of an exposure of manipulation in
Rock Island stock. There is manipula-
ton going on continuously on the stock
exchange. No deal of any size has ever
been conducted on the exchange without
manipulation. a fact known to every
member Of the organization. None the
less it pleases the board of governors Of
the exchange to pretend that their great