Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-02-09
Financial News Letter
By W. 6. NICHOLAS.

places along the line. Inc complexion OF
the industrial situation does not brighten.
and those who hare looked for comfort in
that direction are obliged to confess dis
appointment. Occasional reports are re-
ceived of freshened activity in certain
lines of production. but the overwhelm-
ing weight of information is the other
way. Railroads are most conspicuously
busy in the curtailmeDt Of expenses. but
that is only because this is the largest
employing interest in the United States,
and the tendencies developed in that
quarter are more clearly discernible than
in anything else. 1t does not bode well
to have the railroads cutting off trains
and 'discharging men by tens. OF thou
sands. and scaling down the volume OF
expenditures wherever the knife can be
applied.
a very large element in and out of Wall
street is strongly committed to the theory
that the attitude Of the political parties
is the chief deterrent to a resumption Of
business, and that no general or perma-
nent Improvement can be looked for until
political matters become more settled and
the parties assume d more friendly posi-
ton toward capital The writer would
like very much to leave politics out of
discussion on stock market and financial
history of the day. but at this tuncture
such omission would be Ratchet mutila-
ton of the facts and the record. Politics
has become one of the leading factors Of
the stock market. 1t Is exerting very
tangible and leading influence upon mems
minds. and figures largely in the FORM
ing of investment conclusions.
Rightly or wrongly most men are say
ing at this writing that # capital could
be guaranteed reasonable safety from POI
litical attack it would come out of hid
ing and, reinvigorate commerce and in
dustry. giving unemployment to the many
hundreds Of thousands now. out of work.
and starting in motion once more the
complicated machinery Of business. Right
ly or wrongly the opinion grows stronger
day by day that the Presidents last mes
sage and it's almost unqualified indorse-
ment by the spokesman of the opposition
party are having very bad and far
reaching effect on business. People are
asking themselves what inducement is
there for money to seek employment or
to back enterprise when the leaders of
both political parties are nOisily Compel
ing for a chance to hit it on the head
with bludgeon or an AK.
Much of the political talk now being in
dulged in is of the most G squieting kind,
and without a doubt contributes to the
general fund of distrust and open fear for
the future. 1t contributes to the pro-
longation of hard times and postpones the
day of a resumption of activity. So long
as the theory could be reached that no.
body was hurt except Wall street and
the gamblers who pervade that iniqui-
tous section the unthinking mob threw up
its hat and shouted with joy. That theory
having been exploded and the range OF
sacrifice and loss having extended from
one ocean to the other and from Canada
to the southernmost limits of the country
the politicians are becoming confused,
and while waiting for line are shouting
more noisily than ever against capital
and its supposedly sinful representatives.
A very wealthy man in discussing the
business and political situation with the
writer talked in this fashion: Il have been
trying to make myself believe that the
worst was over, and that the hard times
would be Of brief duration. 1 find my
faith in this position shaken. What is
there to encourage people of means and
enterprise to do anything? l look about
ME and see little but wreckage and dis
been leaders in every line of industry
have been crippled. They have been
thrown down and trampled upon. In
countless cases they have been stripped
of fortune and of the means wherewith
to proceed. What can a business man
do whose capital and credit have both
been destroyed? l see men about me who
a few months ago We're worth millions
of dollars and who were giving employ
ment to thousands and tens of thou
They are like men with their arms and
legs cut off. Men cannot go into the bat
tie of business weaponless any more
than soldiers can fight without arms or
ammunition. Seeing things disturbed sur
vivors are loath to engage In the Strug-
gle until the situation Gains down and
they can feel that they will be safe ii
they stick their heads into view. They do
not want to feel that they must be con-
tinually on guard against the assaults Of
some political big stick
The manner in which weakling rail-
roads are going into the hands of receivers
has rekindled sinister gossip about South
ern railway. A reaSsuring word in regard
to that property is. therefore, more than
usually grateful. Some time ago one of
the large stockholders in that road asked
j. p. Morgan what its outlook was. Mr..
railway was hurt like all other roads and
would have to have some money to get
through, but that he would provide such
funds as might be necessary. The inquiry
was again made to Mr.. Morgan not more
than q week ago. and once more that gen.
tleman assured his friend that arrange
ments would be made to provide the road
with such money as 1t might need and
that the property would not go into bank
ruptcy. Mr.. Morgan Is evidently deter
mined to see that one road through at
least.
AS for Erie, there is also best authority
for the statement that 1T will be amply
able to weather the storm. That road is in
very fair physical shape except at the
extreme eastern end. and the expendi-
lures that will be required there can be
arranged for unless the whole situation
goes to pieces and the bottom drops out
Of the railroad world. The Gould roads
are under the harrow. If they starve
through it will be piece of undeserved
good fortune. However. most Gould
things have to undergo starvation treat
ment for shorter or longer periods. and
the experience ahead for the Gould rail-
roads will, therefore. not be a new one.
Wall street enjoyed hearty laugh this
week over the Pittsburg characterization
Of dead locomotives and "empties" as
Teddy Bears.
The Rock Island people were able to
give emphatic and unqualified denial Of
bearish rumors in regard to that SYSTEM
runors having their origin in the enforced
liauidation of bunch of collateral in
which there was lot of Rock Island
bonds and stocks. Rock Island Is "ali
right"
NEW YORK SPECIE.