Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-02

The powers" when given warning adopt
such measures as may be required for their
the banks and trust companies upon which
they lean and to which they must look for
their ultimate support.
plus stocks and land the public with
them. the banks and trust companies will
still be under $700000,000 to 81. 900, Co., 600
worth of undigested bonds. For months
there has been almost no market for bonds
except at decided concessions, and this
mountain of stuff has become an oppres-
sive and dangerous burden.
Nominally, underwriters are carrying the
load, but in reality. it is the banks and
trust companies. the rich men who did the
underwriting having transferred the bulk
of the responsibility upon the institutions
where they have borrowing standing. They
deposit these bonds collateral for loans.
and there the mass rests.
An experienced bond dealer gives me as
his opinion that the enforced liquidation Of
the mountain of unsold bonds = = hanging
over the New York market wou.4 result in
loss of $150.000.OD0 or 500. 100000. For
the most part these bonds absolutely
unstable at anywhere near the prices that
are asked for them. Fortunately, the un-
derwriters and banks have not as yet been
compelled to unload. and should the fall
and winter months pass without calamity
they may successfully navigate the raft
into market where they can dispose OF
the watef-logged cargo. In any event they
Will avoid tettisoning as long as possible.
ana In the meantime the stock market will
De Kept moving by every device which eX
per.ence and the resources of the men be-
hind the guns" can suggest.
And so the railroads are going to get
after private car lines. and so far as lies
in their power discourage the further en-
fragment of that feature of transportation.
1t does not appear that war is to be made
owls inc H,,no h,yt fhat~ tbar
growth is to be stopped and the creation of
new lines prevented. This, at least, is the
policy which has been announced as con-
trolling the Hartman systems. and there is
good reason to believe that the other great
road will fall into step with the same pro-
gram. Private car companies have become
an abuse and a menace to railroads and in
dependent shippers Hike, and. Furthermore
they come in conflict with the spirit of the
new interstate commerce law.
Again, the Jim Hill-Steel Trust ore
deal Is contaminated. this time by semi
official proclamation. The announcement
leaves much to be desired as to the details
but 1T is gathered that the trust takes over
the Hill iron beds, agreeing to mine Ger
tain minimum quantity yearly. an amount
equivalent to a fat per-ton royalty to be
sumabfy the Great NorthernC, such pay
ments to apply on the purchase price, the
freight to go to the same people. In other
words, the trust is to pay several millions
on iron ore it might just as well be taking
from its own properties, leaving its own
resources virgin a provision against the
Day OF exhaustion Of the newest acquisition.
No wonder Jim" Hill is worth 500, OOO, 600
*+
The railroad situation in the northwest Is
certainly warlke. Hartman. Hill and Van
Horne are parallelling, extending, invad-
ing and rate slashing at lively rate, al
though the latter crime is mostly of Hill
initiative down to present date. = ~ -cs.-s
X -.sst-.s -*r-.f-'
The redoubtable Jacob" Schif, who was
Harriman's banker and hacker for a dozen
years or more. is said to have been kept in
ignorance Of that Union and Southern
Pacific dividend like the rest of the OUT
siders, until the last minute. Was it q
punishment for resigning from the Harri-
man roads from purity" motives?