The Washington herald., 1908-01-19
WALL STREET NOTES.
Disquieting News Has Small
Effect on the Market.
RUMOR AFFECTS RAILROADS
Reports that PennsyIyania and New
York Central Have shown Deficits
SuppOrt-ERse of Money Market,
However, OvercOmes Reaction.

New York, Jan. 1S.-To-day, as on the
preceding day. the market showed ability
to resist bad news. and this was. per-
haps, its strongest characteristic. on
Friday the bad news had reference TO the
falling Off III the earnings OF the Pennsyl-
vania system To-day there was a similar
story in regard to New York Central,
vouched for by apparently good au-
thOTity. According TO a statement at
tributed 10 ar official of the Vanderbilt
system the business Of the roads which
in December fell of in a way that was
almost terrific" has since shown practi-
cally no recovery, and there are now S0,-
000 idle cars along the Lake Shore and a
proportionate number along the route Of
the parent system.
Nor does this tell the whole tale, for
it is stated that a great number Of
empties are moving in trains on their way
10 the West, because the storage room in
the East is all occupied and new ears
ordered last year have not all been de-
livered SO that the lines OF idle equipment
are likely 10 become more extended be
fore they are reduced. But the market
Of affairs on the leading trunk lines 10
was TOO overwhelmingly buoyant 10 be
held down even by such important facts
bearing on the present condition OF busi-
ness. and the inference drawn from its
action was that traffic would soon revive.
Next u the Improvement i'm the money
situation. which In every quarter was re-
garded as the most potent factor on the
side of advance in prices Of securities the
stock market derived most benefit from
the announcement that the Department
Of Justice. believing that the com
modities clause" Of the Hepburn law was
unconstitutional, intended to institute suit
at once TO obtain a determination Of the
question by the Supreme Court OF the
United States. II was everywhere be
lieved that the suit would end IN favor 90
the roads and that as a factor in the
stock market tbe extraordinary clause
grated on the rate law for the purpose Of
driving the railroads out of the coal bust
ness should hereafter have no more in
huence than II 81 had never been enacted.
II was natural that Reading should be
more affected than any other stock by
the practical disappearance OF doubt as
10 the right Of the coal roads % retain
possession of their mining properties
'efter May next, for this company, con-
trolling about 30 per cent Of the anthra-
cite trade Relatively far more inter
ested in the matter than any other COM
pany. Reading interests have always
COntended that the law is UHCoHstitu-
tional, and naturally they are grauled
now to find that the Department of JUS
jiCc. which has never been suspected Of
harboring friendly feelings toward the
sO-called anthracite trust practically
comedies the justice Of the contention
United States Steel made q new higu
record and closed with a net gain OF "a
fun point on the day. No other stock
equally prominent I'm the trading ended
the session with as large a gain as this
American Smelling and Refining was
the weakest stock in the market A new
factor entered into tho trading-the
threat of competition contained in a
statement in the morning papers 90 the
effect that unless the company reduced
its smelling charges q number Of mine
pToprietoTs IN Montana would take meas
ures TO erect a smelteT Of their own Il
Il doubtful, however, II this will exert
any great influence beyond increasing the
volume Of bear sales.