The Saint Paul globe., 1905-01-16
'DLENS D|SSECTS THE
MARKET VARIATIONS
Says Talk Of Radical Leais-
lation Has Had Its
Effect

O1A1A, jail. - = AAS| SCI IA ity
markers have been more irregular than
expected the last few days. A few stocks,
however, such as Northern Securities, the
faclncS and the local fractions, showed
exceptional strength. and gave the general
market decidedly more buoyancy towards
the m close. There was no change whatever
ward movement, for railroad prosperity
-SuHered no Interruption and general buSi-
ness is satisfactory
ne reasons for hesitancy IN the early
part OF week were not difficult to find.
"A the nrSt place, prices of stocks are al
ready high and sustained chiefly by the
lacl tnat money is very cheap and findS
much the best returns in stocks. Again,
the January rise seems to have been
party anticipated in December. Further,
STOCKS have. for several months been
nands. Gold exports have also exerted a
depressing influence, nearly $50, 100000
having left us since the present move
ment tiaa II began: It is true we are In posi-
Lon TO easily spare this amount, and 1T
mas gone where it will do most good;
yer, there is prospect of more following,
ana such an efflux usually causes more
concern than necessary. The most potent
lnIluenee, however. in checking the rise
was unquestionably the fear of prospec--
i've railroad and tariff legislation. espe-
claliy the former. All sorts of radical
measures are being proposed which have
not the remOtest chance of ever~becoming
law; but their effect upon the sensitive
iiti ,nachlnery ne OF finance is depressing, and
lhey are likely to act as sharp restraint
upon wall street operations.
Rebate System
Just now very active campaign Of dis
cuSslon is being carried on regarding the
rallroad rebate system and private car
ABUSES. Probably no one would be more
glad to see these evils abolished than the
railroads themselves, and railroad man
ayers are more likely to cooperate with
than to antagonize President Roosevelt in
the obtaining of such legislation. The
president seems much in earnest about
securing equal treatment to all shippers
from either owners or users of railroads.
great deal of uneasiness, however, is
SHOWN at reports that the president will
also seek to have the interstate commits
SION, winch has for years been begging for
increased power clothed with authority
TO 1X rates for transportation on rail-
Ioaqs. such an extension of govern
ment interference were seriously contem-
plated there would indeed be cause for
apprehension. 1t is one thing for the gov
ernment to say unreasonable rates shall
not be charged, and quite another for it to
actually fix rates.
= In the first case it can only insist upon
what IS fair to both carrier and shipper,
while W nie in the other it might, if it chose.
Ine railroads and create a wide.
spread disturbance in values, the end of
which could not be foreseen. There
toward the enlargement of the functions
of government, and a halt should be called
without delay. This fixing of rates would
be big step in the direction of socialism
and government ownership, or even prac-
tlcaI connscation should the ratemaking
body so decide Such power would be, in
Iolerable Is In free country like the United
states, and would quickly create a state
OF afIa1fs vastly worse than is now en-
dured. Fortunately, the president. while
intent upon obtaining some sort of relief
from railroad abuses through legislation,
is not committed to the socialistic idea
of the government fixing the rate. In his
recent public utterances on the subjec he
not impracticable. to clothe the commits
sion with general authority to fix railroad
rates, I do believe the commission should
pc vested with the power to decide, sub
reasonable rate There is nothing radi-
cal in this statement; and, if it still rep
resents the presidents views, there is
absolutely no cause for uneasiness on that
score.
Fear of Tariff Change
Another source of unnecessary appre-
hension is the tariff. There is no doubt
but that public sentiment demands par
tai revision of the tariff. and the presi-
dent recognizes that it is wiser to satisfy
than to ignore this demand. Conditions,
however. are such that the tariff will be
revised by its friends and not it's enc
mics. This means there will be no radical
changes in the schedules and that reduc-
uons Will be made where they will do
the smallest injury and the largest good.
1t Is quite likely that an extra session
will be called to act upon one or both of
these problems, but aside from the sensi-
tiveness of vested interests to tariff tin
kering there is no reason for expecting
radical action and no reason for undue
fear- There may be radical talk, but ac-
ton will be conservative. Recognition of
this fact had probably much to do with
Fflday S sharp recovery.
- A favorable feature in the situation is
the rumor of peace between Russia and
Japan. Neither party has yet reached the
point OF exhaustion, but the Russian gov
ernment is so seriously threatened by rev.
olution at home and further disaster at
the seat of war that it may be forced to
accept reasonable terms of peace, .espe-
clally as those terms would certainly be
more onerous if the war were prolonged
only to end in Russian defeat.
Postscript-Since writing the above the
market developed sudden and unexpected
strength; Northern Securities, Union Pa
elfic. lnterborough and Copper all showing
marked advances. This movement sug-
gests that important developments have
taken place in these securities, which for
long period have been the center of more
or less disagreement and friction If this
theory proves true, that conflicting inter-
ests have adjusted their differences, it
must OF course have an important infiu-
ence upon values and cause renewed ac-
t1v1ty IN the stock market A more hope
ful spirit is already manifested, but stocks
should still he hOu0hf with much cautiop