Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-06-06

somewhat Interrupted by the inter-
vention of Decoration day. President
Roosevelt's address at Indianapolis
was decidedly reassuring, and fully
confirmed the repeated statements in
these advices that he stood for no
harmful federal interference with the
railroads, but simply desired that
standard of fairness and honesty in
management which would disarm hos
tile criticism and in the end benefit |
investors quite as much as shippers |
an end to railroad abuses, as it is to |
be hoped he will, the result will be
highly beneficial not only to the coun-
try at large but also in financial and
political circles. His frank state
ments should stop for all time the in
| furious Misrepresentation of his at
titude which have been so persistently
circulated, apparently for the futile
purpose of forcing him to yield or
compromise.
Current news was hardly of a ia
yorable character outside of the presi-
dents address; but in view of the fact
that active railroad shares have UNI
dergone decline Of nearly 10 points
during the month of May, a reaction
| airy feeling of more or less strength
developed towards the middle of the
week. especially when the contents Of
the presidents address bees me known.
The growth OF bearish feeling had en-
couraged the development OF a short
interest. and buying to cover materi-
ally aided the advance.
/ Need for New Capital.
There are two factors Of considera-
BILE importance which may or may not
have been fully discounted. The first
of these Is the continued outpouring
of short-term notes and the prospects
that more will follow. These persis-
tent demands of the railroads for new
capital come at q most inconvenient
time Capital Is really scarce the
world over, the available supply hav-
ing been practically exhausted by the
prodigious activity in business and the
creation Of new enterprises during the
last few years. There is no method
Of creating a fresh supply except by
} waiting and saving precisely as the
! individual must do when he has ex.
: hausted his bank. account. Our chic,
! source of new capital is profits Of bus.
mess at home. We borrow relativel,
3 much less from. abroad than formerly
and the foreign markets are less dis
, posed to lend than usual for the rea
son that they find active employment
themselves for capital. Unfortunately
the new supply of capital promise
to grow with less rapidity than in tn
. last few years, because of the dimin
g ished profits in business which higl
! cost of production and materials ar
= causing. There are many perfectl
. legitimate business enterprises await
q ing development today which are alb
. solutely pigeon-holed owing to the i'm
= possibility of securing financial back
ing because the railroads are absorb
: ing all the new capital that is OF
g tainable.
High interest Rates.
q These short-term notes issued b
| SAS ASSAAO&AS GAVIN q 0OuUly uGQEGSs
ing effect on the stock market. In tn
first place, they tend to keep up til
q rates of interest and thereby depres
. not only the bond market. but ais
q many of the first-class railroad CON
9 mon shares The latter, it is argue
Q must meet the effects of probab
2 business reaction and the PRESIDENT,
Q election within the next two year
y Whether there will be any reductio
- in the common stock dividends or M
as result of these influences remain
to be seen. A second consideration
$50 that many shrewd investors regaI
the short term notes-with their hig
rates of interest and the certainty
principal being redeemed at a give
time-as more salable investments II
the next two years than the averae
railroad stock, which must face tt
uncertainties referred to. These In
fiuences have undoubtedly exerted
permanently depressing effect upo
railroad shares in general.
Another element of depression hs
been the cold and backward seaso
making the crop outlook more unfs
vorable than usual at this period
the season. There is no doubt thi
much of the reported damage to whe'
has been exaggerated. The season
u very late and some injury has r
suited from unfavorable condition
N. but good weather in June and Ju
might easily bring, the wheat crop l
to the average. AT present this cou
~ try is not threatened with a whe
N famine; and short crops on the 9th
70 side are quite likely to result in hi
prices, which will be profitable to o
farmers and amply compensate the
for any moderate decline in yield.
very considerable surplus was carri
over from Tho last ernn and IL Is nr