Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-26
GET TOGETHER THE SCHEME
James J. Hill, on the Contrary,
Declares There Are Red
Lights Ahead.
BUSINESS DONE ON CREDIT
From 95 to 90 Per Cent of Transac-
lions Done in This Manner, Ac-
cording to the Magnate.
BUSINESS DONE ON CREDIT

Jacob H. Sclliff. James J. Hill
and other men conspicuous in the
financial world arc discussing the
present condition Of the stock and
money market with much interest.
Mr.. Sci1itf. upon his return from
the so 9Th, sd d among other things
that h did not see how the present
troubled condition of the market
can IL brought to a close until in
vestors are relieved from the pres
ent agitation over railroads. Mr..
Hill says there are red lights ahead
which mean I'VE should go slow.
Despite disturbances, however,
New York houses secured the best
part of the gold on the open Lon
don market yesterday.
NEW YORK. March o6.-Jacob H.
Schiff. head of the banking house of Kuhn,
Loeb & Co., returned to Wall street yester-
day after short vacation spent in the
south, and following the close of the dis
ordered stock market of the day gave this
expression of his opinion of the situation:
II do not see how the present troubled
position of affairs in financial markets can
be completely ended until effective steps
are taken to allay the anxiety which exists
among all classes of investors and business
interests over the agitation against rail
roads.
Il believe this fear that something eX-
ceptionally distressing is TO happen in the
way of legislation to railroads, curtailng
their earnings and therefore their ability to
make returns to stockholders, is more ac-
countable for the present state of affairs
than Is the money market. The money
market 1 believe, will right itself in large
measure after the middle of April, for the
treasury authorities are displaying an intel
ligent interest in it's course and apparently
stand ready to do all they can within proper
limits.
Funds Should Flow.
From the middle of the month on funds
should flow toward New York. 1 find no
sign OF great trouble among houses of
standing either here or in Europe, and it is
surprising how we'll margins are main
tanned in this city.
The real problem. therefore. seems to
me to lie in this railroad situation. 1 have
thought it over carefully, trying to keep in
mind the point of view both of the railroads
and of the government. and it appears to
me that possible solution is to be found in
the adoption of a plan the main features Of
ment by the railroads themselves of GER
tain number of representative railroad men
conversant with that side CT the matter,
who should go into convention or confer
ence with the members of the interstate
commerce commission. that body, of course,
representing the government
Fair and Frank Discussion.
"In this conference there could be a fair
and frank discussion of all the proposals for
railroad legislation of every kind, and it
ought to be possible for such body Of men
to agree upon a plan for legislation fair to
all parties, which could receive the sanction
of the President. of the people generally,
and of stockholders in railroads. This
could be made the basis of legislation by
Congress and 1t should be Of such a thor
ough nature as to make it unnecessary for
individual states to do more than follow the
lines laid down here.
Things Sound at Bottom.
II think personally that this is entirely
feasible and that If it were possible to bring
1t about there would be removed from the
minds of people generally the apprehension
which now exists and which is finding ex-
preston everywhere.
II have felt and said that the year 1907
was to be one of liquidation, and if this Is
properly conducted not only In the stock
market but in business al large, 1t will in
the end prove beneficial. At bottom things
are sound. and decline of not more than 5
per cent in the volume of trade in this
great country of ours would bring harm to
no one and would provide relaxation to a
marked degree in the money markets. I
think such decline in trade is within sight,
although 1t may not come immediately