The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1912-12-06
By 1. a. FLEMING.


1t was a wild day on Wall Street yes
terday. a day that pleased the bears
nightly and that worried the bulls in
inverse ratio.
There was but one real reason for
the smashing breaks that occurred
throughout the list and that gave the
industrials one Of the worst days In re-
cent weeks
It was the full effect and force of
the Union Pscific-Southern Pacific mer-
ger decision; simply that, and nothing
more.
If the Southern Pacific was COM
petitor of the Union Pacific before the
merger, as declared. and this was the
reason for the absolute divorce, then,
in like manner, American Steel Hoop,
National Steel, Federal Steel. Illinois
Steel, and the other integrals that en-
tered into the United States Steel Cor
poration were all competitors Of the
Carnegie Steel Company, the paste foun-
dation Of the Steel Corporation, and as
such with the Tennessee Coal and Iron
Company must be divorced and each go
its own way
II this is the case, the whole bunch
of trusts have got to stand the gaff. If
the government continues its fight
against them.
Through this Union Pacific-Southern
Pacific decision the Supreme Court has
smashed the trusts fairly between the
eyes.
There were rumors in circulation that
the Steel Corporation would inaugurate
the dissolution voluntarily, IL waiting I'M
til after a suit has been started can be
called voluntary. But the handwriting
on the wall is easy to read, and read
justment must go on, unless Federal in
corporation, amendment to the Sherman
act, decision to let trusts alone, or
some other scheme permits their exist
ence in form and manner as already
existed.
While the industrials were suffering,
the rails were not making much head
way; indeed, with few exceptions, they
also took a good beating, the efforts of
the bears being general and sufficiently
profitable to make the days work sat
isfactory. Some few of the bear fol-
lowing thought the profit tempting, and
covered in the hour before the close.
but there was no general let-up of pres
sure and but fractional recoveries, with
a weak closing.
Southern Pacific had a fairly good day.
because after breaking it the shorts bid
the stock up on themselves to a net ad-
vance of 3-S. The Street has not aban-
doned the idea that as its own boss
the Southern Pacific will be grealy bene-
flied.
A large business was recorded in Union
Pacific and Steel common, and rather
more than usual fluctuations with a net
loss of a point to SIS. Steel preferred
was of 81
Smelling. Car Foundry, Locomotive,
Western Union. and Texas Oil led the
industrials in the extent of their breaks.
The total sales of the session were
$4,000 shares and lively trading was in
dulged in up TO the last five minutes
of the session.
The bulls seemed very tired; there's
a reason for it.
The call" has not released much
money, although rates in New York
have eased off on call to 63-4 per cent.
Washington bankers still complain Of
scarcity, despite good deposits, and the
general Iet-up in business incident to
the lack of speculation and investment
in local securities and also in general
business.
On the Stock Exchange yesterday |
afternoon Washington Gas found favor |
at Sc "a. although it was offered an
eighth lower after 80 shares had been
sold in 25-share lots
Members of the Exchange have much |
to talk over at every session, but they
do little business. The possibilities Of !
union of utilities under Federal orders
has been considered, and there are
those who think that it may be possible
for the Washington Utilities Company |
TO carry out a wholesale merger, under |
the approval of Congress, and with the
consent of a public utilities commission,
the formation of which seems to be only |
matter of a few weeks.
Washington Railway common was sold
at Sc, the preferred was offered at 80, |
with I-2 the best bid, and there the /
matter ends for the present.
Riggs National Bank sold at $50.
The only sale of bonds was Of c. & /
P. Telephone IS at 104.
Acting under the instructions of the !