Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-15
Steps Taken to Prevent Demoraliza.
ton in Prices
CUT IN STEEL PREVENTED
Independent Manufacturers Brought
to Terms-No Big Boom, But
Normal Buying Indicated.
By W. G. Nicholas.
Special Correspondence Of The star.

want the market nel0 nrm ana are play
ing to see prices strong IS to build a
for the hotation of numerous
bond issues which are scheduled for issue
within the next thirty days. The amount
of these bonds may aggregate as high as
$3.50. 100000 to $3OO.OOO,Ooo. These bonds
cannot be sold on declining
stock market. The next spectacular play
will be grand oversubscription OF the
s6OOOO.OOO AZ per cent issue Of
New York city stock. New York is to be
made the billboard for q splendid adver-
tisement Of the bond market and lot OF
stuff is expected to be marketed on the
strength Of the exhibit Of anxious invest
ment capital.
Many Securities Located.
The manner in which the big banking
interests came to the rescue Of the Car
negie and other cripples among the banks
and trust companies of the second and
third class revealed one fact at least Of
live interest to Wall street and that part
of the public which keeps an eye on the
stock market 1t revealed the where
bouts OF the huge mass OF hitherto un-
whereabouts of this floating supply had
been a matter of conjecture and Of end
less speculation. The public has I'M
been liquidating stocks for a
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.
1t 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. 1t is
therefore to the interest OF these insti-
tutions and owners and hackers, who
also command the use of the funds OF de-
positOrS, to maintain prices, or at least
prevent decentralization. Any serious break
in the market would necessitate wholesale
calling Of loans from friendly interests,
and would inevitably be accompanied by
tremendous and heartbreaf;!ng liquida-
tion, which would hurt the big people.
Inasmuch as these big people control the
banks, trust companies and insurance
companies, where the great chunks Of
money have accumulated, it becomes a
matter of self-preservation to check any
tendencies to market decentralization or
to the further unsettlement of confidence,
already somewhat shaky and frazzled.
Banking Interests in Harmony.
The demonstration of enormous muscu-
lar power which began the week was
most impressive. 1t produced the desired
effect in most quarters. 1t showed to the
world what the banking interests could
do when they wanted to and when they
were working in harmony, as now seems
to be the case. But for the support that
came from the banking interests there
would most likely have been q very bad
break in the market. The situation
seemed to be framed that way. When
the interests" took the market in hand
Monday morning after continuous con-
ferences lasting nearly the whole of two
days and two nights the general feeling
was one of intense anxiety. Before the
day was over it became known to all
men that values were to be protected and
that it would be dangerous for the bears
to indulge in any raiding of consequence.
The market was lifted bodily / to 3
points. and on the two succeeding days
further evidence was given that support
would be forthcoming whenever it might
be needed.
No Bull Campaign Indicated.
At the same time it was given out from
inside sources that there was no inten-
ton of running bull campaign or OF per-
hitting one to be run, the purpose being
simply to impart to the market a quality
Of stability and perniancy. 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 II
possible, and at lower prices if they have
to. The latter contingency may arise
if business conditions do not improve as
hoped for and as earnestly predicted by
the ordained spokesman of high finance
and high industry
Farrell's Promotion.
The steel situation continues to be the
center of interest. The developments of
the week serve to spotlight the fact that
Wall street is in complete and absolute
control of every phase and feature of the
United States Steel Corporation The fI1c-
ton on the inside. which led to the freez-
ng out and enforced resignation of Presi-
dent Corey, marked the beginning Of the
end of the Carnegie domination over the
operating department. Judge Gary. in
making the announcement of the Corey
made the astonishing state
ment that the directors would probably
leave the position of president vacant
and elect two vice presidents to do tie
work OF the chief executive. That an
nouncement was construed as direct as
of absolute supreme authority
and brought storm about his head The
various Carnegie chiefs went straight to
headquarters and registered an awful
kick.
The Carnegie boys" had been educated
to look for promotion and they insist
ed 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 Inundated the
k1ckers by promoting over their heads
a man who was nominally q member of
the Carnegie school, but was no more one
of the Carnegie crowd than the rankest
outsider The elevation Of Mr. Farrell
to the presidency Is distinctly a Gary
coup and establishes the fact still more
strongly than before that he Is the whole
thing. II the Carnegie boys DO not lik
the way he does business 1t is their privi-
lege to retire. and there is very little
doubt that many of them will do SO dur
ing the current year.
Insurgency Stamped Out.
insurgency among the present iron and
steel manufacturers seems to have been
very thoroughly stamped out for the
time being. The Independents who only
few days ago were threatening to cut
and slash prices in order to get business
have been a very subdued lot since the
and banquets began. Just
what methods were employed to bring
vealed. Enough Is known. however to
Justify the statement that strong medi-
cine was administered in some cases. A
rich independent, who supposed himself
strong enough to stand alone and defy
the world, and who had openly .announc-
business, explained to an intimate friend
that he experienced change of heart
when he found it next to impossible
to renew his loans in bank until he bow