Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-06-25
Industrials First Affected.

preciate their importance.
Industrials First Affected.
The industr1als list was first to feel
the unfavorable effect Of the political
development in Washington. The rail-
road list, however, was quick to fall In
step. by reason Of the flood Of bad crop
news which kept pouring in. Steel stocks
were under special pressure. Indeed.
they had been hammered hard for many
days and it only needed q little addi-
tional weight to produce quick action on
the down side. This was promptly
forthcoming. An impression has been
gaining ground in the street for quite
while back that the Stanley tnvesti-
cation might not be joke after all. For
q time the street was carried off its feet
by the fine display Of tact and dtplo-
macy shown by Judge Gary. But this
did not last very long.
The notion which many had held that
the committee was q lightweight bunch
ground and hidden influences supposedly
responsible for Its creation and plan OF
campaign, was rudely and effectively
dispelled by the publicity given to GER
tain correspondence by Chairman STAN
ley. the incident being made a peg upon
which to hang enlightening explanations.
The Stanley committee will De hereafter
looked upon with greater respect In Wall
street, and be given due credit for in
dependence and integrity. That its in
Quiry into the steel trust will be search
ing and intelligent, and that 1t will be
above suspicion. is beginning to be the
accepted theory In Wall street. There
is a strong possibility that the steel
position of a holy white elephant, too
sacred to be approached without UNI
covering the head and bending the knee,
much less being handled without gloves
by repr esentatives Of the public bent on
getting at the inside facts concerning the
organization and it's management.
Plenty of Cheap Money.
The main supporting force to the stock
market for months past has been the
superabundant supply of cheap money
not only in New York. but in all Of the
leading fiscal centers Of the country.
This immense accumulation of funds had
to find employment somewhere, and the
place In which IL could be loaned out
to best advantage was the New York
stock market. Banking syndicates en-
couraged rich friends and clients to buy
seasoned stocks. giving them every facil-
ity which their bullying vaults afforded.
The result has been that the banks and
trust companies at the present moment
are overloaded with stock exchange col
laterals. and on any sharp reaction there
curtailment Of such loans. Long expert
ence has taught banks the hazard OF
getting under an unwieldy burden OF that
kind of collateral So long as everything
moves smoothly 1t is the most comfortable
and satisfactory line Of accounts that
could be desired, but let storms arise
and grave reasons exist for looking for
withdrawal Of public buying power,
then stocks and bonds can become drug
on the market just as much as real
ifryn ~ situation
not being underestimated by the expert.
encad heads of the great combination Of
banking houses In Wall street.
Inactive Stocks a Peril.
The high-priced stocks. like Union Pa
cific, Reading. st. Paul ana the Hill
issues, were found to be especially vul-
nerable. The great volume Of specula-
ton that has conferred in this group OF
stocks tended to lift them out of line
with the rest Of the market Specu-
lators favor active stocks because they
feel sure that they can get In or out
without serious loss and close to the
market They are are IN IN NO w,t uan line, Of
stock and left helpless. as might be the
case IL they got into inactive things. "A
speculator had about as ieaVe pe ioaueo
up with iron reindeers IN panlcky mar
ket as with the dead ones on ,ne lst' A.,
1t came as something OF snock TO AIS
cover that the steel trust was actually
under investigation by federal grand
Jury right here in the city of New York:
The inquiry had been going on several
days before the fact became known In
Wsli street. Even yet no authoritative
statement has been given out as to just
what the grand jury is after. but 1t is
taken for granted that the quest is not
an idle one and was not undertaken for
the mere killing of time. II Is supposed
On account of alleged rebating practices.
ana report points to cement and wire
nroducts as the particular item under
discussion.
Talk Of an Alliance.
President Underwood Of the Erie has been