The Washington herald., 1913-11-04
TWOINFLUENCES
BREAK MARKET
Mexican Matters and Trust
Busting Speech by Attor-
ney General Jar Stocks.
MEXICAN OIL SMASHED
Declines Ten Points-Income Tax
Problems Sill in the Air-vLocsl !.
Stocks Slow.
MEXICAN OIL SMASHED
By8. :. FLEMING.

yesterday, and everything favored them
from the Mexican. situation, which was
reported as decidedly acute with inter
vention as a certainty in the near
suture. TO the speech OF Attorney Gem
erai icReynoids at ST. Paul. OF this
more anon. 80
There continues 10 be an absolute M
difference on the part Of the public,
nor will many actual holders sell at the
prices current, so that the bears nave
the situation very largely n their own
hands and have no hesitation In Ihilng
full liberty. only hssitating and covering
='hen the pront is sufficiently handsome
&C warrant cashin5 IN.
Yesterdays market rallied at tie close
out this was probably duo more TO the
, fact that today, election day, VIII be
Holiday II the security markets than TO
any fear OF their position on the short
side
The sensational drop o. the day was
in Mexican Petroleum, which broke
nearly L points from CLOSING
On Saturday at Sc L. to 44S4 for low'
SEwith a rally to 45 3-4 at the close. The
company pays per cent annual dividends.
The absence of a quorum at the called
meeting Of directors last Saturday in
creased the belief that the dividend viii
be passed. The company's chief produc-
ing well is in Mexico and would prob
ably be damaged in the event Of inter
Nention. Some three thousand shares OF
stock were sold from Los Angeles Satur-
day and this caused weakness then, but
not as pronounced as the situation yes
JerGay when forced selling by discourag-
ed holders from the way UP 6Ss and bet
ter gave up the awful fight and the
ghost at the same time, SO far
as Mexican Pete" is concerned.
Attorney Generals Talk.
N,ro-ra,, c,a,o,oi ATora1,poIdSs- Snaach
in the Harvester case destroyed all hope
Of policy of inertia against big business.
Measured by his standard, what show
has any combination of the big ones to
pass muster and receive the stamp 20.
H.?'' Not many; indeed it would be dif-
ncult to name one.
The following is an interesting and vi
tai excerpt from his address:
' Under the undisputed facts the forma-
tion of the International Harvester Com
pany was not a normal and natural de-
vslopment of the commerce in harvesting
machines. 1t was the child Of one not
heretofore interested in the business,
L George W. Perkins, a banker and in
surance man. who stepped in at an op-
perfume time TO bring the rival manu-
facturers together
He and others, by means of a COM
binatiop in corporate - FORM destroyed
competition and intrenched monopoly"
Practically the army of trusts of to-
day was organized in much the same
way as the Harvester Corporation. II
, the Attorney Generals standard is to
he the one fixed by the Department Of
Justice in carrying out the reputed pro-
gram OF the President after the currency
bill has been enacted, then there is
nothing but trial and appeal in store for
corporations industrial, of large capital,
resulting from combination, and the
prosecutions that have been held so far
are but child's play to what's coming
No wonder the theory of the street was
that Mexico was second to the Mercy
holds.
And big combinations knowing they
have got to face the music will not yield
before the last resort has been taken.
steel TradcSPOOr.
Reductions in The orders in the steel
trade are followed by steady price de-
creases in products
Naturally under such conditions intend
ing buyers will hold of for further recess
sions.
Newspaper articles, and especially one
Monday morning by the Sun, caused
much uneasiness Under such conditions
the market is SIRE to be unsettled, and
street experts believe that it is the time
10 go slow and Ito be ready TO take ad-
vantage Of any serious recessions in
Avalues.
The cost Of new capital is sure to pIay
an important part in the future of the
market. Wall Street is also vitality con-
"erned about the income tax, paving
more attention TO it yesterday than TO
the market
From Boston came evidences OF her
cuiaan work on the part of Tom Lawson
! and his friends on the bear side of the
list, although Boston bought Copper
quite freely at the decline, also Tennessee
Copper, which is reported to be due To
work higher, although no one can back
predictions made at such an erratic and
uncertain time.
The LoSscs.
The declines OH the leaders AZ tine
rscoyeries II the last hour on the buy
ing by shorts amounted to about 3-1 OF
point. The covering movement was ac-
oountable for l-2 average recovery from
the low.
Union Pacific touched 1915 ard 70.
covered to 149 5-& Steel was low a.
AZ 10 and came back TO 55 7-S Reading
closed rs of; St Paul, IA; New YorI-
Central Norfolk and Western Missouri |
Pacific, and some other shares, i-2 off.
Republic Steel preferred lost H.;
Utah Copper, L 81; Amalgamated. ia.
} while Mexican Petroleum at the close
was OF 1854 points. Harvester lost 2l
points.
Strength was shown in Reading first
preferred for q point advance, and Pa
ciic Mail gained S-4.
The tape was within 2 few minutes of
Hthe market et the close.
income Tax.
On the advice of its counsel the Wash |
inEton Gas Company decided not to
make the payment OF the income tax
for its bondholGers. Many other cor
7orations with bonds outstanding bear-l
ing the free-from-tax clause refused 20
abide by the ruling.
On all sides are found complaints thai |
The Treasury regulations have but COM
pIicated and more seriously muddled the
situation.
There are those who question the
right OF the government to impose extra
work and expense ON corporations and
heir transfer agents. The additional
labor in large transfer agencies Is thei
occasion Of q heavy tax. a New York
agency hai to employ fifty additional
men. and another concern had TO rent
additional offiee room and buy furniture. |
Here is some comment on the situation !
fron. a New York standpoint:
From the Manufacturers Reccrd: The |