New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-09-12
FINANCIAL MARKET
Various Uncertainties Restrict
Wall Street Operations.

| The investment markets are inactive
and while Wall Street houses are adVis-
/ ing the purchase of good stocks at pre-
vailing levels there appears to be htt'e
money available for investment pur-
noses. The speculative demand also is
of insignificant proportions, notwith-
standing the ease in call loan rates and
the general impression that no nnpor-
tant decline In prices need be looked Tor
in the Immediate future, or, for that
matter. in the rest of the year. STOCK
market prices are from 20 to 90 points
under the figures reported at TINS tune
in 1909. and according to the opinion or
most Wall Street observers the 10"
noint for 1910 was made on July 10
when the leading railroad issues showed
an average of 1859 and the CHIEF IN
dustrials 1862 Since that time there
has been a recovery TO above IL LOT the
railroads and 10 more than so for the
| industrials, but few men III the nhau-
cial community whose ideas are emitted
| to consideration believe that a new low
| level will be made before sustained
advance develops 1heS ofPN ~
figuring on aggressive bear pressure ana
| liquidation with the approach OF the
! Congressional election, as in general con-
ditions affecting the intrinsic worth OF
| American securities there are no factors
that warrant sales of stocks at ruling
| prices.
| General business. money and crops Of
! @or mn argument for uneasiness over the
future hut il is not unnatural for the
s,,erulatiye element to exhibit nervous
| ness over the possibility of the election
of a Democratic Congress. wall street
= hearish on Democratic policies. if they
NAV he Identified with that name, and
while 2 Democratic majority could do
nothing inimical to the best interests or
/ tho country with a Republican Presi-
dent at the helm, the mere idea OF
large increase in the Democratic repre-
sanitation in Congress sends cold shlVerS
! down the backs of our Wall Street bulls.
The Vermont election proves nothing be
yond the fact that local causes and not
national issues were responsible for the
falling off in the Republican vote Inc
Democratic party has never proved Its
ability. if it has any, TO work for the
| hest interests of the business commu-
nifty. and it is owing to this fact that
/ Wall Street and our men Of big affairs
are unwilling to make large commit
rne1lts for the future when the slightest
doubt exists over the return Of Repub-
/ Iican Congress or q Republican Presi-
dent.
In addition to political uncertainties
there are other factors that restrain
sneculative operations in the stock mar
ket at the present time. The outcome
| of the hearing on increased freight rates
| is being awaited with no little uneasl-
ness in the Street. owing to the strong
| fight the shippers are making against
the proposed higher schedules and to the
! heavy declines in railroad net earnings
al = time when the companies appear to
| he unable TO reduce operating costs and
when there are signs OF lighter gross re-
! GENTS at 40 distant period. Much OF
the recent heavy tonnage. OUTSIDE or
grain shipments, has represented move
meuts of freight on old orders, and there
! Is no certainty that new business for
| few months 10 come will be heavy
enough to maintain the favorable com
narisons the railroads have been making
IN their gross earnings with correspond
ING times 2 year ago. The shippers as
| SORT that rates should not be advanced
as pronosed, inasmuch as the schedules
from their point Of view, are unfair and
,1nrea soma BILE. They are not fighting so
mich against the general policy OF
higher freight charges as they are
against the discrimination which they
hold the railroads propose to exercise
against the small manufacturer and
wavsfda shippers. who, they maintain,
will be compelled to bear the entire bur
den of the increase
From the figures presented by the Van
daIfa Railroad at last weeks hearing.
showing the proportion of class rates to
be advanced under the proposed sched-
uIes. the proportion of commodity rates
and the proportion of both classes I'M
affected by the higher rates, the ship
pers appear to have the best of the ar
g7,ment on the question of discrlmina-
tion Fortunately, the Interstate Com
eminently fitted for the work OF declolhs
| what is reasonable and fair IN the mat
fer of freight charges. and there should
he no apprehension among owners OF
| American investment securities that the
| commission will rule along lines that
Will he unfair either to the carrier or the
simmer New conditions have developed
affecting the transportation business IN
| this country as a consequence OF the
vast power given to the Interstate COM
merce Commission by Congress, and
careful students of economics, as rule,
believe that the general industries OF the
country eventually will be materially
benefited by these conditions, TO winch
the railroads and the shippers must ad-
lust their affairs.
Politics, the railroad rate situation anu
the course of earnings, the extent or the
interior demand upon this centre Tor
currency this fall and the uncertainty
over the action of the Supreme Court on
important corporation cases now pend
ing may be sufficient argument TO re-
| strict speculative operationS in SeCur-