The Washington herald., 1912-12-08
Rx A. FLEMING.


speU Yesterday, the two hours session
being attended with only moderate ac-
tivity and with fluctuations that were
generally more or less unimportant. 1t
was a case of a tired market. exhausted
after six days of decided activity, and
a breathing spell in preparation for what
Monday may have in store for the
street.
The Supreme Court holds Wall Street
in the hollow of its hands these days.
The court gave the brokers and fnan-
Ciers an awful joke last Monday, the
Southern Pacific-Union Pacific merger be-
ing a straight left TO the jugular. Should
it take the view that the State Of Min
nesota had the right to regulate freight
rates, the blow would be more serious-a
solar pleXus smash
In the event OF the Reading decision
. being adverse to the claims of the COM
Pany il would fix the status Of the high
est court of the land in the opinion of
Wall Street, but the opinion would not be
as effective as the other decision.
But this is Just what Wall Street is
liable to get tomorrow, and If 1t does
the bears will hold jollification meeting.
On the other hand. if the decisions should
be favorable to the corporations involved
the effect would offset the Union Pacific
decision, which in itself. in its appllca-
ton to the roads involved, is not so seri-
Gus. but in the broadening of the theory
that competitors must not get together
is broad enough TO have caused conster-
nation.
Naturally the opening on Monday will
be nervous, and after two hours the mar
ket will subside while everybody listens
for Supreme Court rulings.
Equipment securities showed just as
good strength as any other group. and
this was probably due. as were all other
advances, to covering by shorts. I'm
pOrtant rails were slightly lower with
the exception of Delaware and LaCka-
wanna, which made the sensational gain
of 97s points.
Tomorrow morning the Pujo commit
tee commences its work where it quit
way back in June. At that time the
chairman made the threat that unless
given the permission to probe into the
inner workings of banks, to pry into
their very business matters of private
and personal character was given, the
work OF the committee would be fu-
tile"
Despite the belief of the chairman, the
banking fraternity believe that the re-
lationship between banker and customer
is a private affair. and they will not
stand for a probe-will resist il even II
ordered, nor will the President consent
TO opening Comptroller Murray's books
to the inspection OF the seekers after
information of such confidential nature.
Even the financial interests that are
not 4 fraction as powerful as the Nor
gan and Standard Oil banks are almost
to a man opposed to the continuation of
the probe.
Probes are expensive to corporations,
even if they haven't souls. They must
male a defense though if as spotless as
old Spotless Town. or be considered as
guilty a sin
The Standard Oil Company was split
into many pieces The demands of the
Sherman act were satisfied. No oneI
claimed that the dissolution was notl
complete-the public was satisfied, but
that portion of the public that is using
oil to-day is paying so per cent advance.
on cost thereof. in order to pay the ad-I
ditOnal expense Of creating competition.
They, like Jones, pay the freight, and
each probe makes the expense little
greater. Probes have been numerous
and many have been STAYED of with al
little diplomacy.
During the last session of Congress our
friends on the right" were probing
everything ready to investigate at the
drop of the hat.
1t is about time the miscellaneous in
dvidual probe" was put out OF business.
II you must probe, so far as this Dis
trict is concerned, probe in the whole
sale.
IN give sly for 1coO Railway COM
mon"
The old familiar cry was heard once
more on the Stock Exchange yesterday. /
1t was a point better than the bid price
during the regular call. 1t was the first
sign of life in the stock for sixty days. /
No one sold the 1000 shares.
For the preferred the official bid was
@la, with S9I2 asked. The chances are i
that the Washington Utilities Company
has about all the Washington Railway
and Electric stock in its vaults that iii
cares to handle for the time being. att
least until the divers propositions for
Tegula ton. investigation, &c, have beeni
passed upon.
But it made the market look a little
better foe the bid. even if it did not
bring outestOCk.
Quite a little excitement was shown in |
the advance of American Security and
Trust Company shares to 80. an advance
Of four points on the current figures of
Yesterday. and the bid was on the floor
when the session closed;
4 sale of Railway common was actu-
ally made at S6 early in the session. |
twenty-five shares, but this was the onIyl
transaction.
United States Trust sold at I43; Union |
Trust l4n.
A feature of the action was the break |
n Potomac Electric IS, considered as one |
ct the high-grade investment bonds. re-
stricted in movement frequently by firm |
ness of holders and by the redemption |
clause at 10.
They have been selling around 1T and |
les, and to-day opened at los and closed |
a 1O4lE.
The Consolidated IS were offered at |
1905. with 1O0l4 the best bid.
The theory was advanced that the |
sales Of the Potomac first mortgage 5s |
reflected a fear that the property might |
lie divorced from the great railway sys-
tom now owning it. but such a theory |
does not look plausible. In the first |
place. segregation is not likely; in the |
second, the real value would in no way |
lie lessened if it was separated. On the |
contrary, it would greatly stimulate the |
Potomac Electric Power Company. I'm |
less there is some other reason, not a |
matter of public knowledge, the market |
Lolds no better bargain than these same |
Potomac IS. If retired before maturity |
lie would be the price. There are only |
81, 10000 outstanding, and the mortgage |
is closed.
III a measure making it illegal for a |
broker to be a director in a corporation |