The Birmingham age-herald., 1911-01-15
NICHOLAS WALL
 STREET LETTER Bank aFilures Disclose Hiding
 Place Of tSocks BIG MUSCULAR POWER Which Began vvccd On Wall Street Was Most Impressive-steel
 Continues To Re Center Of Interst
 
BIG MUSCULAR POWER
By W. G. NrcHoLos

New York, January 14.-(Special)-- The manner in which the big banking interests came to the rescue of the Carnegie and other cripples among the
 banks and trust companies of the sec
 ond and third class revealed one fact lat least of live interest in Wall street
 and that part of the public which keeps
 an eye on the etock market. It re-
 yealed the whereabouts of the huge mass of hitherto unlocated floating
 supplies of securities. The where
 abouts of this floating supply has been
 a matter of conjecture and of endless lspeculation. ss.
 The public has undoubtedly been H. quida ting stocks for a year or more.
 Commission and brokerage houses in
 nine cases out of ten will say that they
 are carrying and have been carrying
 fewer stocks than in many. many
 months. If the public hasn't the stocks
 and the brokers haven't anywhere near
 the usual quantity then where are they?
 was the question everybody asked.
 It is now definitely known that they
 are lodged with the banking syndicates
 which surround the various banks and
 groups of banks which dominate Wall
 street. It is therefore to the interest
 of these institutions and owners and
 packers who also command the use of
 the funds of depositors to maintain
 prices. or at least prevent demoraliza-
 ton. Any serious break in the market
 would necessiate wholesale calling of
 loans from friendlysinterests and would
 inevitably be accompanied by tremend-
 ous and heart-breaking liquidation
 which would hurt the big people. Inasmuch as these big people control
 the banks, trust companies and insur- ance companies, where the great
 chunks of money have accumulated, 1t becomes a matter of self-preservation | to check any tendencies to market de-
 moralization or to the further unset clement of confidence. already some
 what shaky and frazzled.
 The demonstration of enormous mus cular power which began the week was most impressive. It produced the de- sired effect in most quarters. It show ed to the world what the banking in terests could do when they wanted to and when they were working in har- mony. as now seems to be the case. But for the support that came from the banking interests, there would most likely have been a very bad break in the market.
 CNe situation seemed to be framed that way. When the interests" took the market in hand Monday morning af ftar continuous copforapras 1aefipr nearly the whole of two days and two nights the general feeling was to all men that values were to be protected and that 1t would be dangerous for the bears to indulge in any raiding of consequence. The market was lifted bodily one to three points and on the two succeeding days further evidence was given that support would be forth coming whenever it might be needed. At the same time 1t was given out from inside sources that there was no inten- tion of running a bull campaign or of permitting one to be run, the purpose being simply to impart to the market quality of stability and permanency and to correct every Idea which might prevail that values would be allowed to tumble.
 The big people have the stocks, part of which they will no doubt hold and part of which they will sell later on at higher prices if possible and at lower
 prices if they have to-. The latter con- tingency may arise if business condi- tions do not improve as hoped for and as earnestly predicted by the ordained spokesman of high finance and high industry.
 The steel situation continues to be
 the center of interest. The develop
 ments of the week serve to spotlight the fact that Wall street Is in. com plete and absolute control of every | phase and feature of the United States | Steel corporation. The friction on the | inside, which led to the freezing out and enforced resignation of President Corey harked the beginning of the end of the Carnegie domination over the operating department.
 Judge Gary in making the announce | ment of the Corey resignation made | the astonishing statement that the di- rectors would probably leave the posi- l ton of president vacant and elect two vice presidents to do the work of the chief executive. That announcement was construed as a direct assumption of absolute supreme authority and brought storm about his head. The various Carnegie chiefs went straight to headquarters and registered an aw- full kick.
 The Carnegie boys" had been edu- cated to look for promotion and they insisted that the civil service rule | should be carried out as heretofore.
 Judge Gary was obliged to yield to the demand, but in doing so he further humiliated the kickers by promoting over their heads s~Gn who was non- inally a membee of the Carnegie school
 but was no more one of the Carnegie crowd than the rankest outsider.
 The elevation of MT. Farrell to the presidency is distinctly Gary coup and establishes the fact still moret strongly than before that he Is the whole thing. If the Carnegie boys do not like the way he does business 1t | is their blessed privilege to retire, and | there is very little doubt that many of them will do so during the current year.
 Insurgency among the present iron and steel manufacturers seems to have | been very thoroughly stamped out fort the time being. The Independents who only a few days ago were threatening to cut and slash prices in order to get business have been very subdued lot since the conferences apd banQuets began. Just what methods were em- ployed to bring them into line will probably never be revealed. Enough is known, however, to justify the state ment that strong medicine was admin | istered in some cases.'
 | A rich independent who supposed himself strong enough to stand alone