The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-03
FINANCIAL NEWS.
And COMMENT
Withdrawal Of Members Of Nor
gan Firm From Many
DirectOrates.
AN ENCOURAGING POLICY
Stock Market Quiet and Irrcgu-
lar Despite Some Adverse
Influences.

OF the new year was not important the
financial day was far from devoid OF
significant or interesting developments
| There was one which wall Street seemed
: unable to estimate properly or adequately
! In anything like It's momentous relations
, The announcement was made late in the
| forenoon that members of the firm of
j. +. Morgan & Co. had withdrawn from
about score of railroad, industrial and
banking directorates. leaving the firm
without representation at all in the New
YORK Central system. on the New Haven
board and In the American Telephone
| and Telegraph Company II also became
| known during the day that arrangements
had been made for dissolving the voting
| trust In which the shares of the Guar
anty Trust Company have been held. ac-
| ton which was anticipated recently by
the similar dissolution in the case of the
Bankers Trust Company.
There seems to be reason why all
| this should have failed OF reflection in
quoted values. on which in the largest
possible sense II has a most decided hear
! ing. but II was clear that the stock
market community did not appreciate it's
full meaning Possibly because Of the
drift toward dulness which stocks mani
rested early In the morning. together with
some symptoms of speculative pressure.
excited by variety OF somewhat unfa =
vorable news of lesser consequence the
share list made no apparent response to
the announcements OF banking changes.
Possibly also because of the more or Less
apathetic Wall Street mood OF waiting
for some clear and explicit sign IA good
deal OF comment inclined toward the view
that the new policy OF the Morgan firm
must be regarded as making for another
period or confusion and uncertainty in
the world or corporate affairs and was
therefore adverse to constructive effort
with this opinion It is difficult To SYM
pathize. Quite aside from the obvious
common sense of the concrete explanation
given that the bankers felt that they could
perform more effective service ii less de-
mand were made upon their time by the
details OF corporation affairs. only the most
optimistic construction could be placed
upon the statement that the policy was
dictated by an apparent change in pub
lie sentiment toward corporation direc-
torships
There was here indicated a further rec
ognition. NJ which there has been much
evidence lately, Of the situation with which
politics has been struggling more or less
desperately and disturbinglv of late years 4:
u recognition which has implied on the
part OF men of affairs purpose To meet
popular desires In respect 10 corporate
organization and conduct. II Is the same.
thing which has been denoted lately by the
better understanding illustrated I'm the APP
proach which is making between the Fed
cral Department of Justice and corpora
tons charged with violation OF the inter-
state commerce laws. 1t will hardly need all
the Legislative projects OF Pujosm ii cor
poration directorates are of their own
accord to become more nearly the sspa-
rate and disassociated bodies that they
used to be before necessity. decade or
more ago compelled the establishment of
close !nterrelationships through banking
connections. Evidence multiplies that Il
new era In American finance and in cor
porate effort is dawning. and the latest
news Is but proof that the lines of future
effort are being clarified with remarkable
rapidity. The interval of uncertainty
which remains can hardly be of as much
consequence as the fact that the final
stages OF economic reimbursement In this
country. instead of being rendered more
remote. are practically completed
Dealings in stocks were in contracted
volume. The market moved irregularly
throughout the day and closed with
irregular changes. showing slight
average OF decline. Considering the APP
pearance OF the market for several daya,
as though II had been overbought. speCu-
lative effort to depress it has not been
materially rewarded and prices on the
whole were fairly steady yesterday despite
the symptoms of some intermittent specu-
lative pressure. which increased n It'll.
in the afternoon. The speculative com
munity seemed to And In the budget Of
marSetwise information a number of
reasons for refraining from purchases IL
not for making sales. The Mexican situa-
ton doomed once more into discussion.
even though II was not manifest how any
ina ginable outcome could tell substan-
TALLY against quoted values
Judge Garys non-optimistic utterances
n pi0hf the 10
United States Steel Corporations activl-
ties received a large amount of notice.
although they were Offset somewhat by
Mr. Wanamaker's observations about the
prosperous possibilities OF the business
prospect most unfavorable exhibit of
November railroad earnings was made,
conspicuously that Of the New York Cen
trail Lines, showing gross decrease of
$l,324 900 and a net decrease of S4,391,-
900. still. the railroad situation is most
intellgenty viewed to-day, not from the
standpoint of current earnings, but IN
relation to the Improvement which may be
effected IL the Government regulators in
dulge the necessities of the common car
riers with more liberal rates.
The rise In call money to 10 per cent
after a renewal rate of Az per cent was
counted against the stock market. but II
IN doubtful IL there was much In the
argument. The tendency OF time money
was toward relaxation and discounts at
foreign centres all moved downward.
The Bank OF England's weekly return
showed the customary year end dcteriOra-
ton, but the financial markets every
where are expecting that money will work
distinctly lower for while subject to
the effect which may be produced by the
new security campa igns that are about to
be undertaken. The known movements
of money pointed to a surprising cash
gain by the local banks this week. but
such suggestions at this time of the year
cannot be safely trusted,