Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-02-09
Prospective Saving of Millions.

Prospective Saving OF Millions.
The delay in bringing to close nego-
tiations for the construction and financ-
ing of New York's projected new sub
ways promises to save the people of this
overburdened community many million
dollars. Postponement of final action
with regard TO contracts for the work
and for the sale of securities to finance
the gigantic enterprise has provoked a
noisy and disgraceful series of battles
between the rival cliques for a chance
at the graft. The exhibition has been
shameless and has been attended by dis
closures of cupidity and indifference to
the rights of TIE public which would
dwarf to littleness the financial and po-
ltical orgies that DETAINED the rec
ords OF San Francisco. Chicago and eVery
other large community (which. has been
at one time or another at the mercy o.
the lawless. Thus far the local tractor,
stocks have moved within rather mar
row limits. although feverShiy active
with a generally upward trend.
1t is explained that the S40.O00OOO dis
triaution ordered by the directors of the
Standard Oil Company of New JerseE
the parent company was part of 500
100000 owing it by the subsidiary conf
panies when the Supreme Court ruled
the dissolution of the trust more than a
year ago. A portion of the other 90 per
cent has already been collected and paid
over to stockholders in the original
trust. Although these divisional COM
panies have liqpid&ted the big end of in
debtedness of $1OO,O0OOoo they have been
able to accumulate additional profits suf-
ficient to give their stocks an aggregate
value of about double that represented
by the quotations on Standard OIL stock
around the date of dissolution. Sold in
detail this collection of subsidiary stocks
would realize between $500 and 81 400.
whereas sale Of the parent stock be-
fore the trust was busted would have
brought around 500. Small wonder that
Attorney General Wickersham is against
a repetition OF that sort of trust-busting
as applied to some of the things now on
hand-notably the Union PacificSouth-
ern Pacific. ''unscrambling.'
Kings of Finance Disagree.
The multimillionaires and kings of
finance are not in agreement as to the
future. The bulk Of opinion originating
with these important people is optimistic.
Those who are in doubt. or do not care
to go on record, guard their real feelings
and judgment under the cover Of CON
fidential." For instance towo of the most
active members OF Kuhn, Loeb & Co
hold directly opposite views, one declar-
ing, with great vigOr, that the United
States is on the verge OF extraordinary
prosperity" while the senior member Of
the concern IS not so certain OF the cor
rectness of his own position, and fears
many things might happen to check the
hoped-for boom, or put it out of commits
sion altogether. His most cheerful esti-
mate of himself is to say that he is IAN
optimistic pesSimist.
For one thing the money situation is
not exactly what the bankers have been
expecting. The flow of currency from
the interior has been smaller than antici-
pated. The total since the first of the
year has been in the ne.ghbOrhoOd OF
$4,000. 900. against about $SJOUo,oOo dur
ing the corresponding period Of last year
At the same time there has been going on
fairly steady outward flow of gold,
already amounting to above S2OoOo.Oo,
and prospect of S4O.O0O,Oo0 before the
export movement ceases. This has cut
down the supply of cash enough to be
felt
The explanation of the decreased inflow
of currency from the interior is that local
demands for business expansion have
created a market at home for the loan
able surplus in the banks near at hand
If this latter is the correct reason then
we are likely to see an advance in inter
est rates all over the country, and also
another excuse for not having money to
finance a stock market campaign.