The Washington times., 1912-05-05

NEW YORK, May SIT cannot be
said that the older and more expert
enced Wall Street men manifested any
great surprise over the break which
developed In securities ;ate in the week,
for they have been predicting a shake
down" for some time past and their
only wonderment has been that one has
been SO long deferred. To the younger
element, the setback may have come as
surprise, for the market has ignored
unfavorable developments for so long
an interval that many persons had
come to regard II as virtually immune
So, In fact, II appeared to be, but ther,
came such an accumulation of adverse
happenings, that financial interests had
to take cogniZance of them, and in
yielding, as prices did on Friday, the
market behaved In a more nearly nor
NAL manner than 1t has for weeks past
To experienced Wall Street observers
the impending reaction was clearly
enough foreshadowed in the shifting OF
the manipulative movement into spec
ialties, which is always sign of a
wayering market, Upon this occasion.
tinued longer than usual. and 1t may
not have run its full course even yet,
but 1t is traditional with Wall Street,
from time out OF mind. that tn, cats
when 1t is no longer possible to bull
standard issues and that always has
marked the beginning of the end of
special manipulative campaign. II the
present should prove an exception, II
will be the first time on record that
a bull movement has continued under
the sustained leadership of the very
poorest securities on the list.
Poor Stock of Leaders.
market. such as Wall Street has
presented recently, subjects ones Gre
dulity to a severe test. for 1t is much
as though one would say that an army
might be lead to victery by its Grip
pies. With but few exceptions the
standard issues have hesitated though
some have been churned vigorously.
while all the manned, the halt and the
blind of the security list have been
pushed to the front. Small wonder that
with speculative activity converging
upon such things as quicksilver, writ
ing paper. linseed oil. corn products. TN
can and many others, that experienced
commission house brokers have been
getting their customers out of stock,
and urging them to reduce their specu-
the irregularity which the market dis
played before Fridays break, was in
fiuenced by such selling.
healthy market is led by healthy
stocks, or at least such are the tradi-
tions and the experience OF Wall Street.
and though, for time. on occasions.
things seem to work otherwise. con-
ditions always govern In the END, ana
even though the proper workings OF
established laws and principles may. In
this instance. be deferred for time
longer. they will assert themselves In
the end. Perhaps the market may de-
velop, as It should develop, into a
likely, for there is always reason.
when standard issues halt and spec
ialties are taken up. Usually II Is an
evidence that manipulators have gotten
more of the high priced stocks than
they bargained for. which empiies high
class selling, and to work them higher
would result in getting still more stock.
and 80 the shift is made TO the spec
ialties, under the cover OF which other
securities are unloaded.
News Again Considered.
Though not definitely defined. one fea-
ture of Fridays reaction, which pointed
to a possible impending change. was
the fact news development and bearish
rumors seemed to enter again into
market considerations. For many weeks
the manipulative party have ignored all
such features and Wall Street seemed
to be filed to overfiowing with a band
Of Mark Tapleys. able to extract COM
fort out or eaCn ana every adverse
happening. This had been referred to
on so many occasions that It need not
be mentioned at any length at this time. |
Even during the week, prior to the set
back In prices. this spirit of happy
optimism. this disposition to look for
the silver lining Of each cloud, prevailed
to some extent Later on there was
a change.
The above feature may be best illus
trated by the reception accorded to the
quarterly report Of earnings of the
United States Steel Corporation. Prior
to the publication of the figures Wall
Streets estimates of the showing ranged /
between $l9,5O0,0O0 and $24. 900. 900. The |
former and lower figure was regarded |
as thet extreme of pessimism and no
one was prepared for the disagreed BILE |
showing of $17.s36.973, the smallest net |
for any quarter In the cor
poration's history, with but two excep- |
lions: namely, the fourth quarter OF
1903, when earnings were but $15.0S7. 900
and the first quarter of 1904, during the |
same disastrous slump In the iron and
steel industry. when they fell to $13,- |
i45, 900. Relatively. probably. the quarter
just reported is by far the poorest in the