The Washington times., 1911-12-31


OF the year was generally inconse-
quential affair In the stock market.
Prices were irregular showing firm
nndertone. however. but dealings con-
tinued very largely professional, and
little significance attached to the price
changes. About the only developments
out OF the ordinary routine were con-
tained In reports from Washington that
the House majority would introduce
legislation to reduce the tariff on steel.
and also that the appointment Of a Con-
gressional committee to Investigate the
Money trust" and others trusts was
practically assured. or happenings in
the ordinary routine Of the market. the
feature which attracted the most at
tention was some unfavorable earnings
by the Union and Southern Pacific roads
for November. particularly those of the
former system, which showed a net loss
Of s.. .101. 900 compared with 1910.
Heavy selling was engendered by the
poor earning statements of the Harri-
man lines, but that this was chiefly of
professional character was rather clear
ly demonstrated by the partial recov-
cry OF the succeeding day. The Slater
strength of the market was ascribed to
the proposed plan for unifying the New
York Central system. The Street ar
gued that no important corporation
would seek authority to issue $50, 200. 900
debenture bonds and $35, 100000 three
year notes at this time unless 1t ex-
pected satisfactory business and salts
factory conditions for large fotation.
A large amount OF the proceeds, how
ever, are to be used In connection with
the CentraPs recent purchase Of On
tario and Western and New York and
harlem stock. While the proposed
merger Is OF convenience to the Central
road and may assist its finances, II Is
difficult to see wherein 1t constitutes a
bullish argument on the general market.
In fact, New York CentraIs financing
IL becoming as unpleasant a feature as
that which In recent years altered the
credit of the New York. New Haven
and Hartford road.
The Year Just Ended.
Wall Street closed Its books today
with no feeling Of regret for the passing
Of 1911. Although. in consequence of
the very many uncertainties in the sit
uation which were clearly foreseen a
year ago not much was expected in the
way OF business revival during the
vas scarcely prepared for such q dis
heartening experience as has been it's
lot. To the average stock broker the
year las been one long series Of disap-
pointments. of deferred hopes, false
starts in the market, meager bust
hess and smah profts. When you con-
st2eE that the .unsatiefaetory results Of
sus HRSn Ss aay
part OF 1910 1t is not difficult to appre-
ciate that Wall Street is wasting no
regrets over the passing. of the year.
hnd many occasions upon which hopes
have risen during the year. only to be
cast down again. At the very outset,
@ for instance, stance, Mall Street was cheered
effect that the then existing litigation
for the regulation of the trusts had
reached point where It would be pru-
Tba afpt to s;tGR and ,h the President added
be directed to the building up of home
industries and the strengthening of con-
fdence In home capital" Any reassur-
ance or comfort derived from these
q long series OF new trust prosecutions.
ending, nnally, In suit to dissolve the
United States Steel Corporation and In
the definite statement from the Presi-
dent that the Sherman Antitrust act
as construed by the Supreme Court re-
quires no amendments and that corpor-
atons must square themselves to the
law and compete as Of old.
-- Some Unrealized Fears.
The hope which prevailed in many
quarters at the outset CT 1911 that the
cleaning ZIP Of the railway rate contro-
versy end the Standard Oil and the
American Tobacco Company cases
would re-establish confidence proved
illusory. In the first inetancs the COM
msrce commission found against the
railroads on their proposed advances of
freight rates. precipitating thereby
sharp break In the security market
The various railways which had been
predit ting Wholesale disasters and bank
ruptctes II they were not permitted to
raise their rates began Immediately to
introdLce economies in management to
which thoy had long been strangers.
and II Is pleasing to note that none of
the disc sters SO generally predicted
have ccTne to pass
1t is true that the Wabash railroad has
passed into receivers hands, and yester-
day brought the announcement of the
bankruptcy of .he Allis-Chalners Com
pany. but It is doubtful II freight rate
advance would have done more than
postponed the financial readjustment SO
long apparent in tho Wabash property.
or aVerted disaster to the manufacture
ing company. II Is true that the New
fork central was foiced to reduce Its
dividend from to per cent as a result
of the rate decision, but there was no
justification originally, for the advance
In the dividend to per cent by that
property, for 1t has been clearly shown
that the Increase was made to assist
the Central road in floating some addi-
tional securities. Dividend reductions.
80 freely predicted at one time In con-
nectton with important systtms like the
st. Paul, the Northern Pacific. and some
others, have not taken place, while
numerous properties. particularly In
Southern territory, have increased their
dividend rates and their earnings have
justified the proceeding.
Freight Rates and Steel Prices.
What the action of the commerce
commission In denying the railways
the privilege of raising their rates did
accomplish was to force a general
price reduction In iron and steel prod
ucts until these reached the lowest level
In q generation, while almost complete
estoppage of railway buying reduced the
productive capacity of the United States
Steel Corporation to about 80 per cent
of the normal output. II may be said.
however, that buying of steel by the
railways has been resumed to some ex-
tent In recent weeks and steel prices
have hardened. This, unquestionably.