Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-23

TO the weak and overextended borrowers:
There has been considerable calling Of
loans this week and more or less iqufda-
ton In consequence. The pressure was
heaviest N the bond division. and a num-
Der Of lines Of thinly margined syndicate
holdings have been thrown over. caus-
ing temporary weakness in that quarter.
Railroads are awakening to sense OF
their duty IN the matter Of ordering new
material and equipment and In starting
upon the proKram Of spending the money
they have been borrowing the last year
They have hundreds Of millions of dol
lars accumulated for the purpose OF In
vest'ng IN improvement and extension
about II. In manv cases they have al
lowed their properties TO run down and
depreciate below Tire safety line. severa,
disastrous accidents have called the at
tention of railroad managements to the
necessity Of bracing up and putting Their
roads n better shape. The consequence
has been that during the last week or two
there has been great stimulation In the
giving out Of orders for rails and cars
and other material necessary to the safe
operation Of the roads. THIS new bust
ness Is putting life into the industrial
situation and Is an encouragement to
business In general. It has also encour-
AGED the stock market and has served TO
have not been as yet on very extensive
scale, but as nobody cared to part with
real stock buyers had to BID up for what
they wanted. The result was a very
substantial advance all along the line.
Short Interest Not Large.
There does not appear to be a very
large short interest In the market. which,
under most circumstances. would be con-
LII
It is doubtful. however, whether such q
construction could be placed upon the
market situation as 1t is at present found.
The bears have been trimmed so often
and 80 mercilessly that they have no
heart for the game and for the most
part are standing aside watching the play
and waiting for the time to arrive when
they can afford to take a chance and
re-enter the arena. The prevailing opIn-
ion among q majority Of professional
SPECTATORS IS that the market will be
advanced substantially between now and
the periodic stringency which occurs In
the money markets during the early au-
tumn months. According to the accept
ed notion, the big people will let the
public have its speculative stocks some
time between now and October and be
ready for the fall in prices which usually
takes place after the unloading Is over.
The program implies almost automatic
action and is spoken OF as one OF the
events which will inevitably occur It
has been observed: however. IN times
most likely to go wrong In stock mar
ket speculation.
The greed Of the factions in the game
for the construction Of $50 0O0. 600 to
Brooklyn subway threatens to degen-
crate into a nasty exhibition which may
yet compel the city to do the work itself
and take the responsibility OF operation
The hog syndicate of bankers and build.
ers have made such shylock terms and
arms and IL insisting that the ofhciai
boards and commissions save 1t from de-
sspoliation. Just what the outcome will
be is q doubtful Issue. It looks every
day or two as though tho matter will be
settled and then something happens to
interfere with negotiations or stop deals
Meantime, the local traction stocks are
being jusgied on the EXCHANGE and suck
er money Is being harvested in very
considerable volume by the inside manip-
ulators. Maybe that is one Of the
reasons for the delay In getting things
settled
Steel Sends Out Feeler.
BY way Of feeler a paragraph has
been sent tho rounds Of the news slips
to the effect that the steel trust might be
justified in restoring to the active sur
plus account $38.OoO.O 600. which Commits
soner Herbert Knox Smith had found
had been charged unnecessarily to depre-
citation account. This feeler is supposed
to be test of opinion as to how the
public would take such move in case
dividends on the common stock could not
be maintained out Of current earnings
It takes about $115. 100000 q year to pay
dividends and fixed charges. which Is
considerably above the 1911 earnings at
the rate they have been coming In the
last seven months. Unless the corpora
ton puts on vastly more speed the last
half OF the year than It did the first half
1t will not earn above 500. 000, 600 for the
entire twelve months Of the calendar
year Estimates of the net earnings for
the quarter ending June 80 range from
$23. OOO, 600 to $27, 600 GOO.
Standard Oil stock IL not traded In on
the big exchange. although there has
been considerable activity in that Issue
on the outside or curb market. The price
has gone up $26 share In the last two
weeks and predictions are made that 1t
will cross 800 before tho dissolution or
reorganization Of the trust goes into eff
feet. Tobacco stocks, on the contrary.
have been weak and declining ever since
the Supreme Court handed dawn its d.
cision. Common has lost $12S share.