Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-07-10

| 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
point or is only temporary remains to be
seen. Opinion on that point is sharply at
variance.
Several 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 on
they could get stocks cheaper.
Expressed Bearish Views.
Representatives of the great moneyed
and corporation interests were outspoken
in expression. of bearish views. and by
their attitude not only checked the buy
ing impulse. but actually gave encourage
ment to short selling. The market could
not stand up against an avalanche OF
long stocks supplemented by free specu-
lative offerings. Within the last day or
est private banking and commission
houses has contained specific invitation
for investment capital to come In. Here
tofore advice Of that nature has been
| themselves tended to scare away people
| and lead them to defer operations,
Since the decline in the stock mar
ket commenced late last autumn there
price of railroad and industrial stocks
and bonds amounting to between ts.-
000. 100000 and $4,00o.0oo.o00. accord
ing to the statisticians who have gone
decline dates from. the sale of large
blocks of inside stock about the time
Mr.. Hartman died. or soon after. and
1t has kept right along with only oc-
casional halts and recoveFies down to
| the present week.
Heavy Selling by Insiders.
The losses during the early stages
of the down movement were due to the
inability Of the market to absorb the
heavy volume Of stun THAT was sold
by insiders. but for the last three or
four months the shrinkage is traceable
to more definite and specific causes.
The frank attitude OF the great bank
ing interests became hostile to prices.
Leaders in the world OF high finance
assumed a pose of angry disapproval
the courts Of the land. They proclaim
ed from the housetops that the attitude
OF the administration and OF Congress
and Of the judiciary threatened the
stability Of property and was an Ia
furious and baleful persecution OF rail-
roads and industrials.
According to their announcements the
politicians and the bench were engaged
prosperity and they would have to take
meas ures for self-protection. These
measures took the form OF relentless
attack upon the value Of the properties
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
| was the lesson.
Administration Went unvhipped.
Now that the discipline has been
duly administered the financial powers
that be are awake to the unpleasant
discovery that the only thing they accom-
plished was a destruction OF values The
administration and Congress went right
ahead carrying out the program out
road or no Industrial corporation has
been really injured in the slightest de-
gree. The railroad rate law. which
was the browning act Of Congress and
1t might be a benefit instead. Of an In
jury to railroads. and an inspiring
source Of confidence instead Of distrust
to investors at home and abroad,
In fouling their own nests the cap
have done no harm except to them
selves and to the stockholders whose
interests they have BETRAYED What
ever of reaction there may be in manu-
featuring and commerce Is directly at
tributable to the object Lesson cam
patgn conducted by Wall street for the
plainly advertised purpose OF satisfy
ing the President. Congress and the
courts that ruin Will enSue unless the
corporations were let alone.
| Now II these captains Of industry and
| their faithful followers will let business
alone 1t will have a chance to recover some
Of the ground which has been lost. The
| they intend to do this or to continue the
policy Of intimidation to still further
| lengths The last twenty-point break In
the stock ses
| 1t may not be beyond their power to
force prices down another twenty points
unless convinced that such q policy would
| be rank suicide for themselves and their
pose intended.
Distribution of surpluses.
| Every important recent development
tends to disprove the chief claims that
! have been advanced by the preachers Of
the gospel Of ruin and calamity. Dur
| Ing the first ten days OF July there has
| been disbursed over $20O. 900. 600 in divi-
dends and interest on corporation stocks
| ana DOnOS, IAI8ef SUN ny
| than was distributed during q corresp0nd-
ing period a year ago. This great sum
represents the available surplus earnings
f; Of organized business during the first six
months Of the year, less the large scat
tering amounts which have been paid out
on the first OF each Intervening month
since the LIST Of January. Each Of these
minor payments was also an increase
over the corresponding month OF 1902
Reports Of railroad earnings right down
| to date show very large increases over
| last year. In most cases this increased
| income has been eaten up by the greater
| cost of operation. but there still remains
| a reasonable return on Invested capital.
The record Of the iron and steel trade
| for the first half OF the calendar year
shows a greater production than ever
| before In history. Estimates given in
these letters weeks ago are verified. The
| production il at the rate OF 8O.OO0.000 tons
year which Is 900 tons better than
/! the previous high record; True, only
| capacity has been provided at too rapid
a rate. fact Which accounts for the
i nricea In some departmentS What Ia