Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-12-18
WALL Street RESTS
Outlook Not AIIuring Nor
Alarming.
NO RUSH TO SELL STOCKS
Holders Confident There Is No More
to Fear.
SITUATION OF RAILROADS
Inability to Borrow Money Not Re.
garded as Unmitigated Curse.
New View Of Matter.
NO RUSH TO SELL STOCKS
SITUATION OF RAILROADS
By w. g. Nicholas.

| IN ANTICIPATION or the season OF ACTIVITY
| which most people look for after the turn
| of the new year.
There is nothing particularly encourag-
| ing in the general situation to induce
| fresh public buying. Nothing is happen.
| ing to brighten holders into letting go OF
| what they have; that is, nothing addi-
tional to the previous long catalogue OF
depressing features
The chroniclers of current market
events. the commentators on the daily
grist Of news and the prophets in most
| cases are giving dark color to the pic
| lures they draw. But there is nothing
really original or startling in what they
| have to say.
The burden of the grind is merely ring
| ing the changes on what has been said
before many, many times and again..
Same Old Stories.
We have all heard until we are tired OF
| the dreary repetition about the policy OF
non-action which is to be pursued by the
railroads until they learn definitely what
! the interstate commerce commission is
going to do about freight rates. We have
all heard that unless the commission
grants the demands of the railroads hard
times will become harder. railroads will
have to cut expenses to the bone and to
defer for an indefinite period all plans
looking to Improvement and enlargement
of plant and facilities.
1t Is an old. old story how the iron and
steel business Is in the depths of an abyss
OF deSpOndency and how the whole coun-
try is on rapidly descending grade
We have also heard all about how the
foundations are hardening and otherwise
improving and how the nation is about
to burst into boundless activity and
prosperity. This sunshine output Is a
perpetual spring Of hope and is in reality
more impressive than the opposite.
Little More to Fear.
Present prices of stocks are believed
by a vast majority of holders to repre-
sent the discounting of about all the evil
that can happen and that there is little
more to be afraid of. A long list OF
standard railroad stocks are now selling
at prices they would be worth If dividends
| were cut to one or two points
| A sweeping reduction in dividends
might be made without driving quota.
| lions much below what they now are
| This Is the position taken by hundreds
| OF thousands of owners Of securities and
| by large numbers of bankers and sub
stantial men of affairs who kept close
| watch on conditions and whose judgment
ought to carry weight and does carry
| weight.
That is why there is no rush to sell
| stocks on the part of the general pub.
| liG That is why the gloomy prophecies
| of breaking markets are not realized.
| II conversation could break values we
would now be seeing New York Central
selling around 80. Pennsylvania around
| Is, Northern Pacific under 60, Union
| Pacific at par. Steel at %, and so or
down the list.
Fortunately it takes something more
| than talk to bring about such dismal
| actualities. Not even when talk is re-
inforced by the persistent short selling
| OF a large army of professional bears
does the market go much lower, and
| them only temporarily.
Investors Know Lesson.
Investors are trained to stand by their
guns. They are accustomed to hearing
| forebodings. and long experience and OBJ
servation has taught them that the coun-
try always RECEIVERS from periods Of de-
preston and that the market is dis
tinguished by a succession of new
| highs" on every new business boom.
They have learned to become bulls on
the market value of their securities
They have learned that these recurring
years of depression are inevitably followed
by recoveries and that there has been no
1Stuoi 1Auhd8c III Values In tnlS TACT
| is to be found the foundation strength
of the stock market against which the
waves Of pessimism beat unavailingly.
The feeling is growing that railroads
are likely to change front soon regard
less Of what the interstate commerce
commission may do on the rate ques-
| ton. 1t Is growing upon the sense Of
important interests in control Of the rail-
roads and the money bags that permits
sion to raise rates Is not vital to the
progress of railroading. The chief argu-
ment used in the promotion Of the higher
rate scheme is that the increased revenue
which will result therefrom will give the
railroads enlarged credit, so they can
borrow more money.
1t would not be an unmixed curse upon
stockholders Of these properties if they
were to refrain from plunging heavily
into debt. The facilities as now existent
are sufficient to handle the business of
the country in a fairly satisfactory way.
There is really no urgent need for nickel
plating the railroads or gold-leafinR the
cars that carry passengers and freight.
Wall &froat,s Attitude