Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-23

ley is remarkable character. In Wall
street Il strong prejudice exists against him.
largely by reason OF his connection with
the collapse OF the Meyer Webb Hoadley
syndicates some two years and q half ago,
one OF the ugly incidents which just pre-
coded the tremendous liquidation affecting
tho whole market. On that account Hoad-
ley has been held more or less responsible
for the great slump In the stock market,
although, as a matter of fact, he had very
little to do with 1t. Speculation had carried
prices entirely too high. and there had to
be a break in the general list. The Hoad-
ley syndicates were among the first TO go.
although from the wreck he was able to
save his pet, International Power. which
today is regarded as very valuable prop
erty and intimately connected with other
industrials of the substantial kind. 1t Is
taken for granted that after the annual
meeting of Tennessee Coal and Iron In
Tracy City, Tenn, May 2, active negotia-
tons will be resumed for a merger OF the
southern iron and coal properties with
fai- likelihood of success.
Sales of railroad and industrial bonds
since the beginning of the year as recorded
on the New York Stock Exchange foot up
$500, GEO. GOO as against 30,OOO,0OO in round
figures for the corresponding period OF 1904.
Prices have ruled ma terially higher this
year than last and there seems to be little
possibility of serious recesSionS from cur
rent quotation Hgh-class bonds have
investment possibilities and interest turns
to the middle and lower class bOnds-those
possessing Il speculative future. The ones
of this class in highest favor are those
based on lines in the south and southwest.
where development is most active and the
country in state of most conspicuous pop
uat.on and industrial growth.
the sole ownership of the federal govern
ment, discussion turns on the managerial
policy which Mr.. Roosevelt will dictate
This is the first time the administration at
Washington has been called upon to run a
railroad. and unusual Importance attaches
to this fact because of the bearing the Pan
ANA road has on transcontinental freight
rates. Theoretically it would be possible for
the government to reduce the cost Of the
carriage of freight between the Atlantic
and the Pacific coasts to any point it may
see fit In practice the governments power
may pan out less potential than most peo-
pie think, much depending on the ability of
the little isthmian road to handle tonnage.
AS at present equipped the Panama line is
restricted and in actual competition would
not cut much of a figure with the half
dozen great lines that traverse the con-
tnent. The Panama road, if four tracked
would still be an insignificant feature in
the handling of actual freight unless the
fleets at either end could be multiplied. SEN
timentally, slash in the Panama rates
might be a big thing, but it would take
years to effect important change in the
statistics of business handled between New
York and San Francisco or between the two
oceans
Forty-siX thousand employees of the big
steel trust have $1,000 shares of the pre-
ferred stock of that corporation on which
there is paper profit of more than $1,000
E0 al the present time. 1t was not so very
long ago that these same holders were in
mourning over the paper losses their invest
ment showed, losses even greater than the
profits are now shown to be. Employees of
the National Biscuit Company hold a large
aggregate of stock in that company, on
which they receive handsome dividends.
Mr. Norman B. Ream originated and put
into force this idea in connection with the
Biscuit Company and he had great deal
TO do with formulating the same plan with
the steel trust. He is a great believer in
personally interesting workingmen in the
financial success of the business that gives
them employment. He is not alone in think
ing that this sort of interest is one of the
best strike preventives that can be de-
viSed
The present rate of production of iron is
22VoOO tons per year, a record breaking
inquire Competent authorities estimate that
WITHIN the next ten years the total pro-
duclon OF iron and seel In the United States
Will be 100000 tons. There is apparently
an average profit of $40 ton in the bust
ness of the iron companies at the present
time, which would make the total profits
about S26O,000,00O for the year, of which
nearly half goes to the steel trust