The Washington times., 1911-08-06

shrewd market observers have hit upon
the theory that the selling originated
from the decision of the Interstate Com
merce Commission in the Spokane or
intermountain rate cases, delivered
during the preceding week.
| 1t is true that these cases were
speedily dismissed from the considera-
ton of speculative Wall Street, and the
late declines in prices during the pre-
ceding week were generally attributed
to the Moroccan situation, but II Is
now pointed out that the transcontinen-
tai and Pacific roads, which are the
companies chiefly affected by the de-
cision on the long and short haul rates,
never recovered the losses which fol-
lowed the decisions. and of all the
standard shares their declines during
the week were the most considerable
and the most disquieting.
Liquidation and Bear Selling.
1t is doubtful If the selling referred
| to was very extensive. but the appear
ance OF long stock in the market broke
the prolonged deadlock and provided the
professional element with the oppor-
tunity they have been looking for for
! a long time The traders, who are a
| hungry lot, fell upon the general list
like ravenous wolves. Their first sue
| cesseS in depressing prices encouraged
them to more aggressive operations in
| which they were favored by the news
| Developments. In fact the market
seemed ripe for a bear raid, and such
| undoubtedly was the spectacle to which
the Street was treated on Friday and
| Saturday.
1t is not to be denied that several of
| the happenings of the week were OF Il
disquieting character. such, for instance,
#, as the 5S-pont break In Standard Oil
stock and the 2l-point decline in Ameri-
can Tobacco. which followed the omis-
sion of the coming stock dividends. The
| latter incident was misunderstood, and
| upon a proper CCmprehenSiOn of the
| fact that a dividend declaration would
! be improper pending the readjustment
| OF the company, the stock regained all
its loss. Both the declines. however,
| served the purpose of directing the at
tcnti1n of the Street to certain un-
pieasant features of the trust decisions
which had escaped attention.
Standard Oil Readjustment.
Speculative Wall Street, it will be
recalled, treated the Supreme Court
findings in the Standard Oil case as a
bull argument, and that stock, together
with American Tobacco and, for that
matter, the entire list, advanced after
| the decision was handed down. But
the companies concerned never regarded
! the outcome of the litigation with en-
thusiasm, and now the speculative ele-
ment begins to see that the rending
| apart Of the great corporations entails
! disturbances and a reaTTangement OF
elements and business methods of which
no one as yet can determine the effect.
Whatever may be the ultimate out
come. the plan of dissolution announced
by the SatTdard Oil Company on oAIn-
! day conforms in no way with the pre-
conceived Wall Street notion of n dis
tribution Of assets and combination
| groups composed of producing COM
panies, manufacturing companies, trans
| porting companies, and selling COM
panies which would transact business
| after the dissolution very much II
was carried on before. To divide thirty
| three concerns. some of small capital
| ization, ratably among Standard Oil
| stockholders. some Of which as owners
fraction as cne-one-thousandth of a
share in some unknown company is not
at all to the liking Of the Street.
Sentimental Influence.
In explanation Of the violent decline in
Standard Oil much was made of the pos
sible unavailaEility as collateral in loans
Of tho thirty-three fragments into which
tho shares are 20 he divided There
row trouble on that score. To be sure
no one knows the value Of the compo-
! ncnt parts. the earnings of the compa-
| nies. CT anything about them. and in
| that the situation is awkward. but then,
on the other hand. Standard Oil does
not figure extensively in loans. The
| holders OF small and moderate amounts
| are investors who do no: borrow ordi-
naI'ily uron their shares. while the large
holders are men of great wealth who no
| doubt can make the arrangements for
| hank loans. If necessary.
The Dredominating influence Of the
slump in Standard Oil upon speculative
sentiment over other developments was
doubtless due to the belief that the in
cident in some way reflected the atti-
tude Of the party toward the market
The rank and file argued quite naturally
that 81 Broadway would scarcely permit
the stock to break 50 to GO points il they
were In anv way faVorablv disposed to-
ward hull movement. It was this ap-
parent disregard by the Rockefeller in
terest Of what price the stock dropped
to that encouraged the aggressive bear
selling hy the professional element.
Thcv laid more stress uDOn IL than upon
either the unpleasant political develop
ments of the interval. the suit against
the hituninous coal and railway COM
panies rumorei additional freight rate
reductions. the crop damage report and
rapid advance in commodity prices. or
even the threatened Investigation Of the
money trust and Of the National City
Banks security company.
Crop Damage Reports.
All in all, Wall Street had a most dis
turbing week. 1t was not, perhaps, that
the news differed much. in character
from that which had recently preceded
1t, but, with security prices breaking,
the developments appeared more dis
turbing and received more attention.
The ono favor able feature which stood
out prominently was the Government
ton on July e Of S91 per cent, an in
crease Of / per cent during the month,
IIpon the planted area this condition
figures out an estimated yield of about
14,50o.o00 bales, which is considerably
above the record-breaking crop of 13-
200 of 1908. The sharp recovery in
cotton in the closing days of the week
had nothing to do with the crop pros
poets 1t was merely the result of a
drive against the short interest, which
had become widely extended
With corn ard sprinC wheat the
situation seems somewhat different.
Crop damage reports have been insist
ent and those dealing with injury To
wheat from black rust in Minnesota and
the Dakotas are credited in we'll |
informed circles, though 1t is believed
that the extent Of the damage has been
grossly exaggerated. Insufficient moist |
ure end the high temperature that pre- |
vailed the forepart of July is said to
have caused deterioration in the corn
crop also The very sharp advance in |
oara0Ic loads tO tho belief that Snunp