Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-27
surfeit of traffic that their facilities, enor-

surfeit Of traffic that their facilities, enor-
mously though they have been increased in
recent years, are unable to handle it with
due economy and reasonable promptness.
Every motive of self-interest on the part of
the railroads and the public alike demands
that this situation be relieved, and relieved
quickly.
1.-THE carriers are ready and willing to
do their part to furnish such relief. Gov
eminent commissions and other public
bodies have taken the subject up and
urging drastic measures to force the
carrying interests to add to their facilities
to the extent supposed to be necessary.
But while on the one hand there is con-
sensus of opinion that the railroads must
spend enormous further amounts of new
capital our legislators and government Of
/ ficials are doing everything within their
power calculated to make it difficult to
raise the needed money.
I'm Addition, and by no means least of
all. the cost of labor. of materials and
supplies. and of everything else needed by
the roads in their operation is steadily ris-
ing. The congestion of traffic still further
complexities the situation. The result is
that expenses are being so greatly added
to that the augmentation in the expense
account far exceeds the gains in gross
earnings large though these continue to
be-"
The unofficial announcement by the New
York Central that 1t will make haste slow
ly In spending money from now on is a sig
nifcant sign of the times. The Central
has been spending money lavishly for sew
eral years-not nearly lavishly as the
Pennsylvania, of course-and the property
Is in the best condition in it's history. The
great work Of electrifying the New York
terminal WILL of course, go on to its COM
pletion. But while money, labor and ma
terials remain at the present high level
the Central is not going to plan any more
extensive extraordinary expenditures. The
power that lies in the hands of the rail-
roads to check the speed of the wheels of
prosperity is enormous. We had striking
Illustration of this three years ago when
all the leading roads Of the country tacitiy
agreed to scale down their orders for rails,
locomotives, cars, etc. The railways of the
country buy nearly 80 per cent of the prod
uct Of the steel plants. The instant there
is any concerted action on the part of the
railroads to cut down orders for the prod
ucts of the steel plants the steel industry
is metamorphOsed from prince to pauper.
This was what happened in 10000. The
purchases of rails alone now foot up to
500, 600 90 a year. II the dominant in
terests in the leading roads of the country
decide that it is mistake to make further
big expenditures with money, labor and
materials at these high prices the present
boom can be very quickly checked.
1t is good deal easier these days to reg
ulate the safety valve of prosperity than, It
was a few years ago. very large share
of the material activities of the country
in transportation, manufacturing and min
ing-is dominated by small group of capt.
talists, who work more or less in harmony.
These masters of commerce in 1904 agreed
that the country was going to swing into
another period of great prosperity and laid
their plans accordingly. When these same
men shall decide that we have reached the
zenith Of the boom and that the time has
come to prepare for less prosperous times
they will again act in harmony. We have
very recently seen the concerted action of
. sp totv TI,A
of many hundreds of thousands of workers
were raised in the course Of few weeks.
Ten men in this country can, In the course
of an hours conference, affect change in
the years output of the steel industry OF
$fOO, 100000.
Bondhouses and other concerns and indi-
viduals who went rashly into the under
writing schemes and syndicates during the
last year are having hard shedding. Under
writings which do not show a loss are the
exception. In many cases the losses run
into big figures The difficulties under
which the underwriting fraternity and
some of the bondhOuses are laboring con-
stitute one of the underlying causes of
weakness in the stock market. Many of the
pools and syndicates have dissolved and
turned back upon subscribers their allot-
ments, deeming 1t the part of wisdom to
scatter the burden as much possible.
The consequence has been very heavy Of
ferings Of undigested securities upon a de-
Ginning market. The mails burdened
these days with circulars and confidential
advices from b0ndhouses urging goods upon
the attention Of the investors. Bargain
hunters are advised that now Is the accepted
time to jump in and get goods cheap.
Strange to say the bargain hunters are re-
luctant to follow this unselash counsel and
hold aloof, 6centing still lower prices and
still better bargains.
-
| Only a few months ago q number of
newer bondhouses took advantage Of every
opportunity to outbid the older concerns
for new issues and TO organize syndicates
for underwriting at terms which the vet
Grams in the field could not meet. The new
houses had the market all to themselves
and were making great Roadway In a busi-
ness way. They commanded large space
under the headlines in newspapers and
were widely advertised as becoming new
powers in the world OF finance. Now they
their feet until they can tighten the loads
that are bearing them down. They find
themselves In q cruel situation, and are
imprudence. OF course, the older bond
houses and conservative banking institu-
lions which were temporarily pushed aside
are extending helping hand and are maxi
ing 1t easy for the new brood.
Mining is fascinating and profitable
form of investment when reduced to q
legitimate basis. Enormous treasure h
taken out the ground every year and dis
tributed among tens Of thousands of for
tunate owners. The industry can never
die out 1t thrives when there 10 dullness
and stagnation everywhere else Gold and
/ silver and CODDer and lead are urOdr,esta fnr
| which there is never ending market. The
COLLAPSE OF the SRnko Domtngo Gold and