The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-12-14
(By Henry. CleWs).

NEW YORK, Dec. 14.-(SpeciaD-
Neither the presidents message nor.
the opening of congress created any
disturbance in the security markets.
On the contrary President Taft's views
were in many respects received with
special satisfaction. The emphasis
which he placed upon the necessity of
public economy moderation in regard
to the use of the maximum tariff and
his rational attitude regarding rail-
road and corporation problems show
his determination to carry out neces-
sary reform movements with as little
disturbance to business as possible.
This is naturally reassuring. Congress
as yet shows no signs of breaking out
with antagonistic legislation. although
it is quite apparent that the radicals
were disappointed at the conservative
tenor of President Taft's message. Po
litically speaking, the situation is
hopeful, for while it is evident that
large corporations must prepare them
selves for more or less government
regulation, and enforcement of the
Sherman antitrust law in its present
drastic form may cause some disquiet,
still the outlook in these directions is
less threatening than during the some
times unwiseIy aggressive policy of the
previous administration.
AS the year draws TO a close the
stock market finds itself in a more
hopeful condition 1t is undeniab,e
that a strikingly optimistic spirit pre-
walls, based upon exceptional business
activity in the United, States and aid
ed by decided Improvement of indus
trial and political affairs abroad. The
favorable conditions are many, he
chief drawback being that the bust
ness of the country and values gener-
ally are already upon such a high lev
ell as to prevent the return of complete
confidence 1t is quite evident that
the country is passing through per-
lou of imitation, the causes of which
cannot here be discussed, but which
are very positive element in the sit
uation. The most unsatisfactory fea-
ture is that values are not upon a
stable basis, having fully discounted
all favorable conditions. Investors are
consequently shy and discriminating.
The better class of railroad securities
are already upon a prohibitive level,
and made more SO by the firm rates
now demanded for money.
Our railroad situation is not with
out serious perplexities. Traffic is
ing improvement, but expenses have
grown seriously, and net results are
very often unequal to those of two
years ago. That the companies should
have to face a demand for higher
wages at this time is unfortunate, for
they have scarcely more than recov-
cred from the effects of the panic.
Wages wee not educed at that per-
iod and labor suffered little from the
disaster. 1t is true that the cost Of
living has risen. So too have wages;
and many of the railroads, if obliged
to concede to latest demands, will have
no other alternative than advancing
the rates and compelling shippers to
pay the bills. The latter will as usual
pass on the increase in expenses to
the consumer For reasons such as
these railroad stocks and bonds have
been comparatively neglected by beth
investors and spectators, and the
large owners of these properties are
still finding it difficult to distribute
their surplus holdings Attention is
ter Gloss of industrials, especially pre-
ferred issues which have not been ad-
vanced to such an extent as railroad
issues and which are benefiting by
trade activity quite as much as the
railroads. Hitherto this section of the
market has generally been upon
lower plane than the railroads; but
as many of the concerns become sea-
soned and prove their steady earning
capacity the effect is to, raise the
standing of such issues, especially
while the railroad section stands so