The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1906-11-28


not. however, thus far realized to any
great extent; the favorable conditions
Of business and the unusual prosperity
attending the railroads having induce
ed them to hold on with unusual ten
acity, in spite Of conditions in the
money market and the fact that prices
were already unusually high. It is
not probable that these gentlemen are
unaware of the fact that in the long
run natural influences will have their
sway. For the time being, however,
as the chief holders Of securities they
retain control Of the situation and NAV
do so as long as nothing happens to
disturb the present equilibrium, or as
long as no important interest sue
ceeds in unloading.
No Change Anticipated.
1t is quite true that there has been
quiet distribution of stocks of more
or less Importance, but it has been OBJ
vious that any unusual effort to sell
precipitated an undesirable decline and
quickly turned the current A retro
spect of the market since last August
will show how comparatively narrow
have been the fluctuations and their
see-saw character. Until these big
holders succeed in. distributing a good
share of their surplus, we are not
likely to see any radical change in the
market; and so far as their power is
concerned, it may be used in the direc-
ton of higher prices, although natural
tendencies are in the other direc-
ton.
In general business circles a great
deal Of caution is exhibited. The de-
mand for nearly all kinds Of merchan-
disc is active and supplies Of the same
are generally much reduced. Values
remain high with no prospects of re-
cession. 1t is this high plane of values
however, that is forcing conservatism
in mercantile dealings; for the prudent
merchant does not care to be caught
with large stocks Of goods on hand
bought at inflated prices.
Caution in Business.
Another element of caution in bust
ness is the constant addition to ex-
penses. Raw materials and finished
materials are high; labor is scarce and
higher wages impose an additional tax
and risk in business ventures. The
action. of the railroads in advancing
wages to employes,-however pleasant
it may have been to both sides-ar-
rests attention and cases more or less
serious questioning. Our railroads
are now under obligations for expen-
sive improvements, and with the costs
Of operating steadily increasing, these
new expenses will inevitably make a
serious inroad upon net earnings. At
the same time they are likely to be
confronted with demands for lower
freight charges, since shippers thus
far have had no share in railroad
prosperity, in spite Of their having
been it's chief contributor. Railroad
managers have problems before them,
the acuteness of which will be quick
ly felt when reaction begins.
Await Presidents Message.
Congress opens very shortly and
President Roosevelt's message will be
awaited with exceptional interest, al
though it's general tenor is already
anticipated. The administration is ex-
pected to continue it's aggressive pol
icy towards the large corporations
which have been disObeying. the law,
and a long drawn out legal battle will
be the outcome. The next session of
congress promises to be one of active
discussion but little real action. Cuba
currency reform, subsidies, reciprocity,
tariff and trusts may all be subjects
Of agitation, especially the latter, and
the stronger the discussion the less
likelihood Of early agreement.
HENRY CLEWS.