Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-02-12
HOLD MARKET LEVEL
Big Men of Street Not Ready
for Bull Campaign.
BEARS SEVERELY PUNISHED
Have Refused to Believe in Genuine
ness Of Uplift.
EVERYBODY TALKING STEEL
Retirement Of Carnegie Crowd Gives
Independents Large Proportion
of the "Talent."
EVERYBODY TALKING STEEL
By w. G. Nicholas.
,rrespondence of The Star.


chance to turn an honest dollar now and
| then. IL they are particularly nimble and
do not let profits get away.
Speculative activity on the exchange
is still largely centered in small group
of stocks-Reading, Union Pacific, Steel
and Amalgamated holding place in the
spotlight. The really big and RESPONSE
BILE people in the street are not anxious
| to encourage too strong a bull feeling
until they know absolutely what the in
to do about freight rates They believe
the commission will treat the railroads
fairly. by which they mean that a part
at least of what is asked will be granted
but they do not know absolutely that
this will be the case, and they do not
care to take any unnecessary risk at
this stage
A decision is looked for in a very few
days, and they feel they can afford to
wait little while longer, now that they
nave gone through eight or nine months
or the trials and fluctuations of uncer-
tainty. The street is still concerned over
the trust cases in the Supreme Court.
but is not clear in it's mind just why
OF now values are going to be affected.
1t is worried because the Standard Oil
crowd Is Obsessed with the idea that
the business fate Of the country depends
upon which way the court may decide
that is, whether the Standard Oil trust
Will have to get new suit of clothes
or be permitted to wear the old suft
Much Stock Unloaded.
Beyond a doubt the interests which
have been behind the bull campaign since
about election time last fall have sold
good many stocks within the last week
or 80. This profit-taking has been so
general that the street is full of sold
out bulls who are talking reaction and
working for reaction in order that they
may be able to buy back their stocks at
lower prices They are helped by a bear
contingent which is regaining courage
after having suffered severe losses dur
ing the past two months This crowd
has been punished continuously 1t has
not believed In the advance and has
fousht II every step So continuous and
so severe have been the losses of the
bears that the triumphant bull crowd
Is loosely wondering where the losers
get the money I'VE take away from
Them
The statisticians have ascertained that
the average of stock prices is now about
tWO-thirds of the way back from the bot
tom to the highest range of last year.
That is to say, of the 25-point decline
on the whole list between last January
and the 26th of July there has been
about II points recovery The argument
IS made that the organized business of
the country is actually in as strong a
position now as 1T was any time last
year, If not stronger, and that IL the
prices OF year ago were justified then
there should be a further advance from
present levels. The contention is earnest
ly made that railroads and industrlals are
In better shape now than they have been
in two years. having passed through a
period or economy and Watchful mainte-
nance. A financial paper has taken the
trouble to find out that since December
u last, a little over two months ago,
thirty railroads and thirty industrials
have appreciated in market values
$o7s.O0O.O 600. or nearly . per cent.
Interest Centers in Steel.
Steel continues to be the most interest
ing stock on the list. That and Reading
run neck and neck in the volume of
dealings on the exchange, and they usual
ly swing in harmony. although not al
ways. The elimination of the Carnegie
interest is the soul of most of the COM
ment and discussion. The passing of
this powerful group Of practical steel men
from control Of the operations of the big
industrial calls attention forcibly to the
wholesale s.4Iiting of ownership and man.
agement that has taken place in the
trust.
It has gone into almost entirely new
hands and is now run by a group Of law
yerS and bankers instead of by the old
crowd OF practical men. Nearly all Of
the old iron and steel crowd identified
with the constituent companies Of the
trust. and with the trust itself for several
years after its organization, has sold out
and invested its money elsewhere-largely
in the construction Of Independent plants.
The transition has given to independents
and competitors Of the steel trust 80 per
cent of the recognized talent" OF the
steel industry. In this connection it may
be remarked that in spite of the extraor-
binary growth of the working capacity of
the trust the independents have grown
even faster.
Since 1t started in business the trust
has spent nearly $4OO. OOO.OO0 in new plant.
besides taking over Tennessee Coal and
Iron and Tricks Union Steel Company.
Both the trust and the Independents are
still adding to capacity at a fast gait.
The total capacity in this country now is
about $4,000, coo tons per annum. of which
q little less than half is owned by the
trust. 1t is estimated that in actual in
yestment the independents have put about
$500 000.O 600 into plant with a capacity
equal to that of the steel trust, which in
bonds and share capital now stands about
81. 700 co., 600. The independents are not
making as much money ton for ton as the
trust. but are making vastly more, con-
sidering the capital represented. or,
rather. the capitalization. BY reason Of
the policy Of the steel trust, that of
maintenance Of high prices for product,
everybody IN the business mas been max
ing money hand over fist. That accounts
for the craze to add to the already over
extended capacity. 1t is believed that by
the end Of next year the mills Of the
United States would be able II taxed to
the utmost produce over 100000 tons.
The high record heretofore is q. 1000 900
tons. 1t will be many, many years before
the 100000 mark can be actually
reached In output. Meantime the tempta-
ton to cut prices to get business will
grow stronger as capacity increases.
Standard Oil Is Out.
Oh, yes. pardon the omission Of the
Standard Oil group in the enumeration
Of interests that have gotten out Of Steel.
At one time Standard OH influence was in
absolute working control OF the trust.
Now 1t is SO Insignificant as to be hardly
heard Of. 1t is practically out. Mr..
Frick down to a year ago was the recog-
nized real thing" In the operating end
of tho industrial and q hint or suggestion
from him was recognised as an order that
had to be obeyed. His quiet authority
was unquestioned. He IL now seldom
seen about the headquarters Of the or