The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-11-21
BANKER CLRWs, VIEWS
The Financial Outlook as Seen From
Wall Street.

NEW 1Ohhi NOV. lS-DuflnR the past
week the course Of affairs at Wall street
has been somewhat checkersd. The COM
parative indifference to the result of the
election, which was apparent last week, has
since been materially modified The men
of finance are now disposed TO take more
serious view OF the arrangements in busi-
ness that must attend the interval preced-
ing the enactment OF the new tariff, If not
also for some time afterward and this
week there mas consequently been consider
able selling Of 'long" stock, not only OF the
industrial class, but also Of the railroads,
with consequent declines in prices. This ten
dency would probably have run 70 greater
lengths had it not been that the owners of
'lndustrials" have rallied to the support Of
/ their properties while London, apparently
favoraby affected by the result of the cleo
ton, has been a comparatively liberal
buyer of those of our stocks in which that
market Is especially interested.
On Thursday. an important new factor
unexpectedly came to light in the form OF
al agreement between the eastern trunk
lines to once more try the policy Of pooling
their earnings. The compact appears TO be
almost identical with that abandoned few
wears ago; and, in view OF the unanimty
and even enthusiasm with which it seems TO
have been agreed upon. it IS inferred that
remedy for the constant cutting and the
very low rates now existing. This harmony
OF purpose moreover suggests some promise
of the compact being preserved. To all
such hopes, however, there is a drawback
that the interstate commission has en-
phaticallv declared against the legality Of
the pooling principle. The managers are,
of course, aware Of this, and it is to be pre-
sumed they have resons of some weight for
II a in ar 10 he
declared purpose OF law Of congress.
W hat those reasons may be is best
known to themselves 1t may be
that they have cause to hope that the
supreme court would not support the deois-
ion OF the interstate commissioners; or that
they suppose the new administration may
prove less vigilent than the present one in
enforcing federal interferences with state
corporations; or that, out of consideration
for the demoralized condition of railroad
competition when unchecked by some sort
OF regulation, the commissioners may be
trusted to abstain from enforcing the law /;
or it may be that they have reason to hope
that congress can be induced TO modify tue
law in their favor, which hope is encour-
aged by the fact that tie interstate conn
mission are now considering whether they
shall recommend cOngre S TO authorize pool
ing. Perhaps, however, the most probable
and immediate reason is that the roads de-
sire to avert competition during the
period OF the worlds fair, and
deem this the best means OF doing
so, leaving the subsequent fate Of
the pool" to be determined according to
circumstances. Even should the federal
commissioners interposs, absolute prohibi-
ton might be STAYED Off by legal tactics
until after the close OF the fair, ard in that
way the immediate object might be secured.
Probably, therefore, the new compact
means primarily the procurement of this
transient advantage, and something more
permanent later il it should prove attaina-
BILE. That this is the immediate purpose
seems the more probable from the fact that
the arrangement was made at q meeting
held TO consider measures for insuring bar
mony pending the harvest of the great fair
traffic, and to prevent its profits being
wasted through reckless competition. There
appears TO be nothing in the compact to
certainly prevent the outbreak of ''cut-
ting" which has 30 far brought all at
tempts at regulating competition to an iu-
glorious end. If any penalties are pro-
vlded they can have little or no force, for
being illegal they cannot be enforced at
law. 1t can be nothing more than IAN
agreement between gentlemen" and
although the. gentlemen in this
case have had experiences that
should have deeply impressed them with
the Importance of maintaining good faith,
yet the idea OF "honor" that prevails among
this particular order OF gentlemen is not
worth much as guarantee OF compacts
There Is, however, one good reason for
hoping that these engagements may be kept
for the transient period here supposed; for
as all the roads will have their full capacity
taxed to the utmost TO provide for the
millions going 10 Chicago and for the in
crease in high class freight, there can be no
rational motive for cutting rates. Il is
certain that, If the agreement stands any
chance of proving permanent, it will be OF
immense value to the trunk roads, for their
freight rates are now cut down to extrava-
gantly low figures, goods coming under the
10 cents rate being extensively carried at 40
to so cents.
This news, though incomplete in its de-
tails, had the immediate effect Of strength
ening railroad stocks and stayed the selling
movement which had arisen from the fore
shade wings of the new tariff policy. 1t re-
mains TO be seen chat effeot this action of
the eastern roads may have upon the west-
ern. The latter havo been DESTROYS of re"
sorting to pooling arrangement, but have
not had the courage to do SO In opposition to
the adverse decision of the federal commits
sion. Perhaps the precedent OF the eastern
managers may stiffen their nerve. In any
event, the worlds fair will be great boon
W Ju6 Ohub, a1O buhG COASAAGi hLAOA C1l
hardly faily to act as an important offset to
the unfavorable inAue- ces which are
expected to prevail during the
period Of transition to the new
tariff policy. Thai Wall street con-
strues the latter factor as unfavorable to
the value of railroad securities there can be
no doubt, in view of the selling movement
in the last few days, which can be attributed
TO no other cause. That influence may not
linn daQlina In,
stocks, for there are counteractinR factors
in operation; but it may be expected to at
least check advancing tendencies arising
from other causes. The situation, taken as
whole, will bear careful Watching, for It
is a complicated and by no means transpar-
emit one: and we therefore recommend to
our friends buying on concessions only and
for brief turns, until the prospect becomes
more distinctly assuring.
Welded PREACHERS DISAGREE.
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