Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-12-08
THE SLUMP IN STOCKS
Wall Street Blames It on the
Presidents Message.
QnOnTrn AT pTT0T
SECUTED AT CAPITOL
CONGRESSMEN SAY THAT MAR
KET WAS ToPHEAvY.
No Likelihood Of Legislation Giving
Control Of Rates to the Interstate
Commerce Commission.

Congressman who keep in touch with
financial as well as legislative affairs are
very much interested in the developments
of the last three days in the stock market
following the publication Of President
Roosevelt's message to Congress. 1t Is well
known. Of course, to everybody that since
last Monday noon there has been a very
heavy slump in the market and that prices
have been tumbling with a rush.
Congressman have been receiving anxious
Inquiries from their friends in New York
as to probable legislation along the lines
suggested in the Presidents message, and
the long distance phone between the
metropolis and the national capital Is IN
constant service.
Wall street laid the decline in prices to
that clause of the message which recon-
mended that the interstate commerce COM
mission be vested with power to regulate
fares and rates of railroads. The street
professed to take alarm at the recommenda-
ton. coming as it did on executive approval
of bills already introduced in both houses
of Congress proposing the same thing, and
when the slump in certain industrial
stocks. occasioned by the advertisement of
a former promoter of the stock, Thomas w.
Lawson commenced. the whole market be-
gan to tumble.
Regarded as Flimsy Excuse.
AT the Capitol today the explanation of
Wall street for the decline in prices was
not accepted by congressman who are post
ed on the probable legislative program. 1t
was said by these men that the market had
been bulled to- the limit, was topheavy of
It's own weight and that it only was too
glad for an excuse to topple over. THESE
men went on to say that to ascribe 1t to
the Presidents message was fimsy ex-
cuse in point of merit, but evidently was
sufficient for Wall street.
II suppose" remarked a well-known mem.
ber of the House. who keeps in touch with
high finance, that Wall street will be
damning Roosevelt again and charging him
with spilling the fat in the fire as they did
when he ordered the prosecution of the
Northern Securities case. But 1t won't do;
there is no occasion for alarm at anything
in the Presidents message. Wall street
has been told that and yet keeps on in its
panic of fear"
Regulation Of Railway Rates.
1t was said by well-informed men al
the Capitol that there is no likelihood what.
ever Of Congress enactfng the recommended
ton of the President to vest such wide
power in the interstate commerce commits
sion. 1t was said further that every man
who keeps posted on legislative affairs
knows that there is no such likelihood. The
question was threshed over by the leading
spirits of the House and Senate last ses-
sion when bills were introduced.
1t was argued then that 1t would be i'm
polite to vest such wide discretionary
powers In a body such as the interstate
commerce commission and that before the
discretion was granted the basic organiza-
tfon of the commission would have to be
enlarged. 1t is said that the President was
advised of these views of the leaders of
Congress.
The recommendation in Mondays message
is accounted for by those who are interested
In the subject on the score of the influence
of the three western governors who recent
ly talked with the President, Van SAINT
of Minnesota, La Toilette of Wisconsin
and Cummins of Iowa. In these three
states the question of railroad rates is
paramount at this time and around it re-
wolves politics.
1t is thought at the Capitol that the Presi-
dent was moved to the recommendation by
the urging Of the three governors and the con-
currence of his own judgment in their views.
Senator Quarles of Wisconsin, who was run
over in the last election by the machine of
Governor La Toilette Is in line with the
governor and the President on the question
of regulation of railroad rates, and will
urge his bill now pending in Congress.
Question of Clash.
The main question is, will there be a
clash between the executive and Congress
over this matter? Up to this time the lead
ers in Congress do not know how deter
mined the President is in his attitude, nor
whether he intends to make a fight for his
recommendation. He may think that he
has performed his duty in calling attention
of Congress to 1t, in response to the plead
ing OF the three governors and others who
have approached him, and not attempt to
bring Congress to his way of viewing the
matter.
However if the President is "out for
blood" as one congressman put it, and con-
tinues to urge the case upon Congress, a
very pretty contest will be precipitated.
The financial world has been assured that
there shall be no legislation along the line
recommended in the message relating to
regulation of railroad rates. This assur-
ance was given, it is said in ample time to
protect the market and it is claimed that
Washington should not be held responsible
for the crash that Wall street is now expe-
rin