Daily Kennebec journal., 1911-03-06
Week Of Nervousness Re-
corded on Stock Exchange.
Extra Session Bugaboo Was
The Chief Influence.
Railroad Outlook for Continued Re-
cession Of Freight Traffic.

New York, March 5.--Dcfnite am
nouncemcnt of the decision of Prcsi-
dent Taft to call an extra session of
Congress was the final development in
a week of nervous uncertainty OH the
Stock Exchange. Throughout the week,
speculation was Influenced chiefly by
the day-to-day indications as to the
probability of an extra session and as
it became more apparent, late in the
week. that the new Congress was TO
assemble shortly the market was sub
icct to pressure which lowered prices.
The unfavorable influence of the extra
session grows out of the professed fear
that IA general tariff revision will be
opened to discussion, with unscttling
effect on business.
The stock market of the early part
OF last week showed good power OF re-
siStancc to the shock of the railroad
rates decision and made some progress
toward recovery. The later rctrogrcs-
sion of prices suggested the thought
that group of spectators who had
acquired large holdings found them
selves in a vulnerable position and
deemed it advisable to reduce theiI
commitments in view of tn" uncer-
taintcs created by the decision. The
poor comparison of January railroad
earnings with that month last year
and renewal of governmental activity
against alleged monopolicS inerea sed
the disposition to reduce stoCkholdingS
The rate decision itself was accepted
as Offering Il mixture of benefit, even
by some of the railroad officials them
selves. AS a barrier to further en-
hancemcnt of prices and costs the
advantage of fixed freight rates for
commerce as whole is clear to all.
The exhaustive review of American
| railroad finance which accompanied
| the commissions ruling makes an Of
fetal certification to the high values
of American railroad properties OF
| their earning power and of the pro-
greSsive increase of both which is
recognized as an effective argumen,
for investors and is calculated to aid
in the enlistment of foreign capital in
American railroad enterprises. The
declining tendency of railroad earnings
in January was sufficiently pronounc.
| ed and general to cause soliCitudc. Re
ports of the great railroad system,
both East and West made the Showing
fairly comprehensive, and stocks OF
railroads in the South and Southwest
where the earnings were relatively bet
ter suffered in common with other.
in the weakness.
| Reports of ear loadings in Februar,
land the growing surplus OF the coun-
try's idle freight cars carried the in
timation of q continuance of the re
Ieession in railroad traffic. The effect
was to give warning against toe
sanguine assumptions from the re,
vlval of January in the steel trade
| even with the news OF the Februar,
maintenance of the Improvement il
that industry. The railroad condition.
| disclosed in the weeks news are the
| oelated sequence to the deeiinine
course of the steel trade through tn,
last quarter of the last year TIL,
value thus affixed to that earlier stee
trade depression as an index of wha
was to follow in other fields encour.
aged confidence in the present stee
trade revival as a herald OF later i'm.
| pfoVement where prosperous activit,
Is now tagging. In the stock markc
however. the rise in prices which ha,
occurred and long pause which hat
followed left speculative sentimen
sensitive to encouragement.