Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-15
Financial News Letter
BY w. G. NICHOLAS.

| Mr.. Morgan gets the credit for having
been instrumental in large part FOR the
| rise in the stock market which carried
prices up 3 to points on most OF the
active issues. The feature of the buying
was the large volume of business orlsl-
mating in London. This line of orders was
distributed very carefully at first. SO as
| not to attract attention to the source. put
| later in the week everybody seemed 10
! know where the buying came from MI.
Morgan seems to have capitalized as
market factor the fiattering attentions be-
| slowed upon him by royalty, and 10 nave
made the most of his art exhibit In
| business way. Wall street finds intimate
connection between the wholesale buying
of American stocks for London account
and the magnate's social triumphs. The
Endorsement Of royalty is very lmpor-
tant consideration in the European capt.
tails. AS a part of the budget of gossip
from the other side came reports tnat
Mr. Morgan. had not only inspired BRUSH
and continental investors with enthusiasm
for our stocks. but that he had also mace
arrangements for great sums OF money
for New York Central, New Haven Erie
and possibly. also for the Southern rail-
way 1t pleased Wall street to give cred
ence to this sort OF gossip, and TO make
the most or IL III HldThet ScIioC.
1t is known among people OF importance
that Mr.. Morgan is the greatest operator
in the stock market ever seen In wan
street. His campaigns are conducted tn
prodigous scale, dwarfing into lnsls-
nficance the dealings of E. II. Hartman.
H. c. F'rick, John w. Gates and all the
rest of the high-rollers and spectacular
plungers. Mr.. Morgan when he engages
in one of his campaigns enlists the active
cooperation of a formidable Following.
| rrir ff>ad
ors as Norman e. Ream, w. X. Wander
bilt, James j. Hill and long list OF rich
New Workers and Londoners, who follow
him blindly when given the inspired word
1t is not generally believed that MI MON
gan in this demonstration intended more
than good sized turn for the purpose OF
giving foreign investors confidence in our
securities and 10 trim" the shorts on
the New York Stock Exchange, who In
! their followings had become annoyingly
aggressive. 1t is commonly conceded that
the general business situation does not
warrant an important and permanent bull
movement at this juncture.
X
Diligent search fails to reveal any mark
ed Improvement in business except here
and there sporadic activity, which is more
than offset by the revealment of recess
sions elsewhere. Bank cearings certainly
do not reflect a general trade or industrial
revival Some talk is heard about in
creased railroad earnings. Some lines are
reporting more cars at work than Few
weeks ago. 1t is very doubtful, however,
if the facts justify the statement to that
effect, which is in circulation. The latest
public report of idle cars on the Pennsyl-
vania system was 1900 and this is one
of the roads upon which there is supposed
to be Improvement. AS matter of fact
there are today fully 100000 idle cars on
49, d., tot
ment made confidentially to friend by
high official. The continual publication of
weekly and monthly reports of railroad
earnings is discouraging and records per-
sistent shrinkage in traffic movement.
Railroad arrangements are in dilemma
as to what course they shall pursue and
steer clear of the big stick. There is a
disposition to attach possibly undue i'm
portance to the wishes of the White
House In this matter of conduct of the
roads. If apparently well> authenticated
reports are to be believed, Mr.. Roosevelt
would like to see wages maintained at
the expense of higher freight rates, and
the impression seems to prevail that it is
within the power, and province of the
executive to compel obedience to his
wishes by a sort of royal ukase. Unfor-
tunately, however things American are
not always done that way, and there are
limitations to the executives prerogative.
For instance, there can be on instanta-
neous uplift in freight rates. Changes in
schedules have to be filed with the inter-
state commerce commission thirty days
ahead. This is to give shippers or others
opportunity to file protests and demand
hearings.
In a horizontal increase, such as sug-
gested in the Washington advices, there
would without doubt be witnessed a de-
scent upon the interstate commerce COM
mission of myriad of shippers in opposition
to the raise, and the hearings would nee
essarily drag on for months. In this con-
nection it must be borne in mind that
freight rates have been undergoing for
several years gradual "readjustment' in
an upward direction. The increased tax
imposed on traffic by reason thereof
amounts to possibly $3.50. 100000, as COM
pared with the schedules of six years
ago. In the single item of bituminous
coal the increase amounts to at least
$25, O00,Ot0. Any further rise on top Of the
.'readjustments" already made is sure to
arouse formidable opposition especially
as the present tendency in everything else is
downward. Illustrative of the impotency
of the President in some directions, word
comes from Washington that the inter-
state commerce commission has entirely
ignored the White House instructions to
institute an inquiry as to why railroads
should cut the wages of employees. The
commission holds that such an investiga-
ton is wholly outside of its official duties
and is doing. nothing in the matter-nor
does it intend to, unless compelled by re-
newed activity of the big stick.
Government finances are attracting in
creasing attention on the part of bankers.
AS late as December last the Treasury es-
timated that there would be surplus of
$40, 100000 for the year ending June 30.
The figures last obtainable put very diff
ferent complexion on the Treasury situa-
ton At the first of, the current month
there was an actual deficiency of $27, OOO,-
600, with four months of the fiscal year
yet come and revenues decreasing
startlingly. while expenditures increase at
a ratio quite as striking Indications now
point to very much larger deficiency at
the end of the year than at the end of
the first eight months. Down to the pres
ent time internal revenue receipts have
held up very we'll. The loss has been
chiefly in customs. The great ocean
freight lines unanimously agree that the
outlook for improvement in the interna-
tional trade movement is the reverse Of
encouraging. Exports have held up we'll
until lately, but even there indications APP
pear of a sharp slump in the volume of
tonnage. Ocean lines which at the be-
ginningeof the year looked for a good
season confess that sharp turn for the
bad has developed. This is shown not
only in freight but in the passenger
branch of the service as well. The pros
pect now is for bad year. and prepare
tons are making by all of the companies
for the Inauguration of extensive econo-
mics in operation.