Evening star., 1914-02-15
BULL SENTIMENT
HAS MODERATED
Strong Undertone of Market,
However, Serves as Bull
wark Against Attacks.
AVERAGE MUCH ABOVE
THE LOW OF DECEMBER
Controlling Interests Apparently OPP
posed to Further Activity Until
Situation Clears.
BY w. G. NICHOLAS.
,rresnondence Of The Star.

Special Correspondence Of The Star.
NEW YORK. February "A, 1914.
Continuation of Immature and apathy
We're the features of the market this week,
and there were no changes OF Importance
in prices. The intense bull sentiment that
WAS under the situation for nearly a
month after the first of the year has
given way to very large extent, al
though there is still a feeling of back
ground confidence that serves Il bull
warK against laWless attack. The fact
comes out that the really leading finan-
ciers of Wall street are for the time
Being against further Improvement of
consequence. They do not want the prices
to go too high lest they get back on
their hands u very considerable load of
securities which they were able to un-
load. There is no certainty that they
could get rid of what they have over to
say nothing of an additiona! line taken
back in order to support prices. The
average of quotations is considerably
above the low of December and the first
few days in January. but in the estima-
ton of a great many people OF good
Judgment it is still too high for condi-
tions as they are now existing.
There is enough going on to create an
active market and put prices higher. but,
as before stated, the controlling infu-
ences are against further activity In the
up direction until the situation clears.
1t looked as though Washington was
going to be u source of encoura cement
and stock market courage, but the tone
of things appears to have changed per-
ceptibly. Neither the tariff law nor the
new currency and banking law gives en-
tire satisfaction in the financial and bust
ness districts. The time has not yet been
given to try either of them out, and it
may be six months before the people of
affairs can understand exactly where
they are under the new regulations.
Income Tax a Puzzle.
The income tax puzzles everybody
who comes within its jurisdiction. The
lawyers are trying to make the most
of it, but it is at best a complicated
proposition and it is liable to be IL
year or two before a full and under
standa ble solution is obtained 1t looks
SO like Il steady and permanent inn
provement in prices and in conditions
that the backsct has been Il severe
disappointment to the active interests.
Money suddenly got easy at the start
OF the bull campaign and the whole
public jumped in and bought.
The insiders with banking and brok-
eragc combinations had to let go of
more property than they wanted TO and
" q
only sold out their speculative lines
of stocks but got rid of bonds which
they had been carrying under d wet
blanket for months But at the same
time they did not want to see prices
go higher. Such a movement would be
very likely to have an effect also Oh
money.
The movement did not go far enough.
however. to mark up interest rates. 1t
so happens that there is d large ag-
rre.ate volume of bonds and short.
time notes maturing between now ana
June and there are complicated nego-
tiations in the transferring OF the pa
ner" The prejudice against any sharp
advance in interest on money is ex-
cuse for the desire for q reaction. Ihere
will probably be general cleanup by
the 1st of July and Il clean field Tor
new business.
Volcanic Speculation in Oil.
! little the most volcanic speculation
In stocks since the panic of 1907 has been
going on in oil issues. There has been
verv lively work in the oil stocks ever
since the big trust was dlsintegraeed
about three years ago from one big cor
poration into thirtythree separate parts
Wien the readjustment took place the
parent company had outstanding s9s'-
o.,s ono in share capital (all common).
(Call IT a rouNu SloU,oo,oV ioi Soii
venience) It's market value had ranged
from S2uOO00,00O to above $tnOoo,ooo
during a period Of several years The IN
trinsic value OF the property was loosely
estimated at about slO0.00o,000 in excess
of the legal capitalization. For several
wears prior to the dissolution Standard
Oil had been listed on the New YORK
Stock Exchange, but as the ownership
was very small, not exceeding 900 at
the utmost. it was Il staSnant specially:
For days and weeks at Il time there would
hardly be a transaction and the papers
would hardly contain mention OF the
property for days at time This death
in life Speculative life is meant con-
tinued through several years and then
came the volcanic eruption incident to the
distribution of SlOo,ov0.o0o capital of the
parent Standard Oil corporation They
numbered thirty-three and the pieces OF
paper that went around among the 300
stockholders giving them ownership in
subordinate companies were about $4,000.
Then came tho complex task OF reas-
sembling the pieces. 1t was easier to
unscramble those eggs at one blow than
to reassemble the mass SO that the own
ershp would be in such shape that the
mess could he understood. 1t took two
! years to do this and in the meantime the