Daily Kennebec journal., 1910-09-26
FINANCIAL REVIEW.
- AAy
Minnesota Railroad Law
Decision Lifted Prices.
Railroad Expenditures Held Up
TIL Commissions Decision.
The Steel Market In Turn Shows
Temporary unsasInsss.

New York, Sept. 25.-Light was
thrown on the points about which So
licitude is felt in the speculation in
stocks by the action of the stock mar
ket last week in response to sundry
news developments For instance, de-
manl was enlivened and prices rose
briskly when bulletins announced that
a master in chancery for the federal
circait had reported against the valid
ity of the Minnesota Railroad law on
the ground that the prescribed railroad
rates were cOnfiscatory and also an in
reference with interstate commerce.
The lapse in prices when it was seen
that too sweeping conclusions had been
drawn from this case was no less sig
mficant of the Importance attached to
the subject That fact was corroborat-
ed. also by the influence on the re-
lapse of, the opinions expressed by
Commissioner Lane in the railroad
rate hearing at Chicago in opposition
to increases in the freight charges by
the railroads. The idea became prevail
ent that the meetings of the cabinet at
Washington this week would decide on
a formulated policy for the ascertain
ment of reasonable railroad rates that
might be fraught with deep conse-
qnences to the railroads of the coun-
Try.
The speculative element in stocks Is
imbued with a conviction that the
course of values Of shares in railroad
companies is wrapped up with the form
to be taken by the railroad rate decl-
sion bv the commission. A corrollary OF
this is the belief that railroad expen-
ditures are to be held up pending this
decision and are to be shaped in ac-
cordance with it's final determination.
In this condition, there is seen little
promise of early revival of active de-
mand for steel products, owing to the
influential part played by the neces-
stiles of the railroads on the activities
IN that trade The uneasiness felt over
the steel trade position was manifest
in the persistent reports of intended
cuts in steel prices.
The denial of these reports from Of
fetal sources failed to re-assure senti-
ment although they were accompanied
by expressions of encouragement over
trade prospects. The copper trade posi-
ton had it's part in complicating the
view of the metal trade situation. The
heavy surplus of copper stocks adds
to the burden of diminishing demand
with trade contraction.
The benefit of the improving money
situation was obscured to some extent
by the uncertainties hanging about
these other factors. The money posi-
ton itself was complicated by the dis
appointment of the hopes of an agree
ment with foreign bankers of the meth-
ods Of financing the cotton exports. The
insistence of guarantee of cotton bills
Of lading by American bankers which
was reiterated by the bankers confer
ence in London. unless modified. will
necessitate the financing of exports by
the American banks and will almost
certainly involve money stringency.
Hope is still retained that compro-
mise may be secured. The domestic
money market. meanwhile, remains
easy. Precautionary loans. made in
anticipation of scarcity are re-offered
IN the market The bond market has
felt the benefit Of surplus accumuia-
tions in the money market.
Crops news has been favorable, but
hes had little immediate influence on
the stock market.