New-York tribune., 1910-09-04
ALLAWAY'S REVIEW

who at the start OF the past week
started out to appropriate the Stock Ex-
chanse-and they made a pretty fair ex-
hfbit. too They were confronted with
bearfshness on every side. And for that
view by the spectators were ample ar
guments," in business reports, railway
statements and banking wisdom Rail-
road presidents were forecastins reduced
dividends, earnings too bad to permit
ANYTHING like continuance Of normal tn
terest returns. If rates were not to %
advanced only desoIation was ahead
Among conversational manufacturers
tariff revision prospects were depressing
" scheduled. And bankers. with whom
pessirnism spells profit. were downcass
over demands that might come along al
most any day-or week-or month "ali
Street was. In fact, keenly alive for the
very coup which this coterie Of brisk
traders undertook They bought brave
" largely. comprehensively. Quota
ticns rose. Sunshine actually dared to
venture into a Stock Exchange window
mr. two. Huzzas became the fashion
Finally, here was the tonic change In
conditions SO long awaited. real mar
ket was at hand
This was on Monday. on Tuesday, on
Wednesday. Then on Thursday some
thing occurred TO cause bit OF tension
On Friday 1t was a strain Quotations
are not so buoyant at the weeks close
There is a test time at hand for the be-
ginning OF this week. All depends upon
what our little group Of adventurous
gentlemen may be doing right after
labor's holiday They have stocks
a-plenty.
The public stays a1oof-nor only per-
s,stent1v but consistently. So little IN
fuence does the public exert in the mar
ket Of to-day that sales to any consider
cessions-on the other hand. buying or
ders cannot be filed except at advances.
The speculative arena has no great hg-
ures engaged In anything important
AS to general business. the record ts
rule. Cotton factories close. iron plants
shut down: IL seems to be an era OF pru-
dence-the waiting attitude is conspfcu-
Gus everywhere. It is not that anything
deplorable IS disclosed IN any direction
but the disposition Is to be careful-to
wait-a condition which the security
market accurately reflects. as 1T must
ever do.
A controlling consideration engaging
Wall Street attention very sharply fs the
phenomenal record Of the conversion OF
gross increases In railroad earnings into
net decreases. Such important systems
as New York Central and Pennsylvania
give this week added point TO this phase
Of the situation. New York Centrali
gross for the month Of July increased
s1.ooo,0o0. but operating expenses in
creased over 100000. For the same
period Pennsylvania showed a net de-
crease approximating s1.ooo.o0o. These
figures are not exceptional, but represen-
tative and give great force to the argu-
ment that the only salvation for existing
dividends is TO be found IN an increase Of
traffic rates both east and west That
such an increase will be permitted by
the Interstate Commerce Commission IS
still very doubtful. Public sentiment, a.
reflected by shippers associations and
other gatherings OF business men, i5
strongly against any such increase. and
the political situation gives TO the ship
pers support which it is difficult 10
conceive can be overcome TO any such
extent as the railroads desire. Without
this traffic rate increase dividend de
crease is inevitable. This is the situa-
ton which the railroads confront. II is
not a pleasing one from either the in
vestment or speculative point Of view.
II dividends are 10 be maintained only
by forcing the public to pay IN increased
toll ii is more than likely that the public
will have something very sharp 10 say
upon the situation in the elections OF
this faIl-more than likely that Repre-
sentatives to Congress will be elected.
pledged to opposition to favors 10 rail-
roads or other corporations. The whole
drift of public opinion trends that way.
So far Wall Street has given but super
fetal attention to this most important
matter, but there is dlscernible TO close
observers a very large and increasing
liquidation Of investment holdings which
is conducted carefully and as secretly a5
possible. and which must reflect serious
apprehension concerning the attitude OF
politicians toward business interests
1t is not to be wondered at that u
these circumstances the security marhes
is tame affair. There is not enough
real trouble disclosed in any dirscfao0
to start anything like general fear; there
Is not enough 10 start anything like gen
a-aI oD,J,,iSp, So long aS this state OF