Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-09-04

at the head of which may be named
United States Steel.
The leading banks and this powerful
group of industrials are in absolute con-
troll of the New York banking situation.
and their branches and connections are
found in the more important cities or the
country. Within limits they can at any
time manipulate the stock markets as
their larger interests may dictate. Nat
uraliy IL would seem that their policy
would be to prevent a precfpitate decline
in securities prices. The weight OF ex.
is In for a long decline the descent viii
be gradual and orderly, with possibly
here and there sharp market action TO re-
lieve the monOtony.
Stocks Are Low.
By common consent the bulk OF the
floating supply Of stocks is lodged with
the big people and it is the big people who
feel most acutely this attack of political
fright Commission houses. with very
few exceptions. will tell the inquirer that
they are carrying very few stocks. The
public has not been in the market for
good while and. therefore. the absorb
ton OF floating stocks could not have
come from that quarter. The rich men
who have the first call on the loanable
funds of the banking combine have,
therefore, been picked out as the large
holders. This has been done by the
simple process OF elfH1TdtlOH. icy sec"
to have yielded to the temptation to bor-
row ] and per cent money and put IL
into stock where they could make scalp
of to and per cent on the TRANSACTION.
In doing this they would appear to nave
put themselves in the perilous position OF
losing more than they make by deprecia-
ton of principal. IT is risk which
everybody takes who engages In that kind
OF speculation. but the people who are
now most heavily entrapped could anord
~;alx oxo
may result.
Meanwhile there Is noted a moderate
Improvement, in some lines Of business.
In the iron and steel trade q greater de-
gree of activity is reported, not enough
so to be revolutionary, but enough OF
movement to be remarked. This Is the
season when there must be improvement
in this industry, or something is wrong
With almost automatic regularity the
iron and steel trade begins doing better
other lines Of manufacturing a kindred
Improvement Is observed. The mercan-
tile division Is feeling the impulse OF the
early fall buying. The great New YORK
med and packed with people from morn
ing till night. a surprising and welcome
change from two months Of stagnation.
Railroads Are Busy.
Railroads are fairly started in upon a
season OF the customary fall and winter
activity Tonnage Is increasing in vol
ume, and there are already signs OF
car shortage on some OF the western
roads. This symptom has not attacked
the eastern systems yet, but. as rule,
they have more adequate equipment, or
rather. they are not subject to these
periodic glutE OF business.
Their trafic is more uniformly spread
out The outcry among the railroads Is
that large as their business IL. and much
as it may increase. they are being eaten
up by increased operating charges. They
wall that unless the interstate commerce
commission gives them the right to raise
their rates there will be no dividend for
stockholders. The battle is now fairly
on between the railroads and the ship
losing q point that they can make. De-
creased net earnings and the causes that
produce them are the strong cards that
the roads are playing and making the
most Of. Bookkeeping ingenuity con-
tributes ably TO the railroad side OF the
campaign, as reflected in the weekly and
reports OF earnings that are
coming in. The harmony Of corporation
whenever there Is an I'M
portant campaign on has always been a
feature Of management. When Mr.. Har-
riman was running his historic bull CAM
paign two years ago bookkeeping sta
tistics were all the other way. At that
time ii was important to influence spec
ulative opinion so as to induce buying by
the public. Now 1t is important to edu-
cate the public to see that their invest
state commerce commission will be COM
uniting q great injustice by refusing to
give the railroads q chance to add to the
tax on transportation.