Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-11-18

D.
the country is very prosperous and the
people are making money as they never
nave before. 1t Is this very prosperity tnat
keeps them for the time being from I'M
vesting money In stocks. Manufacturers
and business men throughout the country
are anxious to put their surplus back into
their business because they would rather
make their money earn 10 to 20 per cent
In their own business than 4 or per cent
In somebody else's business.
James J.. Hills speech in Chicago has
stirred up lot of comment. The curious
thing about it is that Wall street cannot
quite make out whether this speech was
bullish or bearish on the market. Mr. Hill
said that railway traffic was so congested
that railways could not handle 1t, and that
the commerce of the country was para
lyzed. He said that to handle the traffic
OF the country the railways ought to In
crease their mileage from 100000 to $50 900
miles. The sober opinion in Wall street Is
that II the condition of traffic is as bad as
Mr.. Hill makes it out to be 1t Is not very
bu1lfsh on stocks. The railways certainly
cannot handle any more traffic than they
have facilities for. and so cannot increase
their earnings. On the other hand, the
holding up freight in various traffic centers
Is bound to react harmfully on business in
terests. Still, Mr.. Hill Is more or less Of q
dreamer. and it Is never wise to expect
that the things he talks about are going to
happen right away.
The really striking feature of Mr.. Hills
statement about the unpreparedness Of the
railways to handle the traffic offered them
Is that the reason capital does not go ahead
and build the hundred thousand miles of
track which Mr.. Hill says is necessary Is
that capital Is nervous over the political
attacks made on corporations. AS Henry H.
Rogers of the Standard Oil said to the
republican campaign solicitor who came to
him before the election, when the repub-
a of oo1r nd
when the democrats are in power they at
tack US. so We have concluded that We had
better stop giving money to the campaign
managers and save 1t to hire lawyers. The
government has already opened its attack
on the Standard Oil Company. Mr. Hill,
OF course Is still smarting from the slap
given him in the Northern Securities fight.
Capitalists, however, do not worry SO much
over suits against monopOlies and trusts as
they do over the agitation regarding rail-
way rates and the growing talk about the
government control of railways. AS Mr..
Hill said In his speech, the government, If
1t went into the railway business. would
only want the through lines. They are
the ones that make money. The branch
lines would be left to struggle along by
themselves.
Mr.. E. III. Hartman is still great bull
on stocks. He tells his friends that the
Union Pacific has $50 in it's treasury for
every share of common stock. and he is
talking 800 and $50 for it. It is predicted
that the stock will sell at 200 this winter
The Newport set, which Is always looking
out for tips on stocks. is carrying a lot of
Union Pacific and Southern Pacific Some
of the Wall street people who do not like
Mr.. Hartman say that he has been able
to unload very little Of the stock which he
accumulated on the rise, and that he Is
carrying about all the securities of various
kinds that he can with any degree Of COM
fort. These people say II anything unfore-
seen should happen in Wall street that
would cause an ogtpouring Of stocks Mr.
Harriman's position would be very Diff
ferent from what 1t is now. While there
has been much clamor against Mr.. Harrf-
mans ousting of Mr.. Fish from the presi-
dency of the Illinois Central, old Wall
street people recall that Mr.. Fish forced
his own way into the presidency of the
road by means that he might not like to
have told at length at this time.