Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-03-05

their announced program, ana that no.
body was being seriously disturbed by
what had happened in Washington
Then began g. change in the spirit Of
the output, and now the railroad men are
becoming reconciled to the decision and
are preparing themselves to face world
that is not quite as frowning as they had
expected.
Have Government Endorsement.
The reverse side Of the picture Is i'm
pressing itself at last on the minds Of the
railroad phaianx. Investors were quick
to see and realize the advertising value
OF the government s Endorsement Of the
American railroad systems. No such Ger
tifcate Of rating has ever been given any
industry as that prepared and published
explanation Of its rulings. The railroads
could afford to have the document trans
lated into every language. printed in
black tye and distributed broadcast over
the whole world by the tens Of millions Of
copies. It is a wonderful testimonial, and
will be taken seriously by investors in
every city and country on the habitable
globe. The absolute refusal Of the real
owners of railroad stocks to be staInpeded
by the raiders who broke the market the
day after the decision was handed down
is an impressive exhibition Of the sturdy
courage and impasdveness Of the invest
ing classes.
The truth Wall street opinion and Wall
street market action does not count so
much with the general public as the experts
and so-called price makers would like
to have themselves believe. One reason
for this is that there Is less margin
trading by the general public than ever
before, In proportion to the volume of
business done. Brokers and commission
houses complain of this lack OF margin
patronage and note that whore it was
formerly the custom for men to come
into their offices, lay down $1,000, $1O.-
600 or $4,000 and buy stocks on q ten
point margin. they trade In one-tenth as
many stocks. pay for them in full and
carry away the certificates. That kind
Of stocks never come back on the market
on the minor breaks.
Never Menace to Prices.
They are never a menace to prices, and
it has come to pass that in times like
these the great floating supply. which in
other days was scattered broadcast. Is
lodged in strong hands-that is to say
it is in the possession Of a moneyed ele-
ment experienced In financial method
and qualified to make its own arrange
ments with the banks for carrying the
securities.
With money cheap and abundant as is
now the case there is scalping profit
dividend-paying stocks. Business men
with surplus capital and with credit are
availing themselves OF this opportunity
in large numbers and to an aggregate
the general situation to breed distrust or
lack Of confidence among these wealthy
people, and they are sitting tight on
their bargains. They are advised by
likely to be disturbed for a good while
ahead and they carry their stocks as
long as they want to under existing
arrangements
they see that conditions are healthy,
that the outlook is promising and they
believe that security prices are more
likely to advance than to decline. That
is why the stuff itself cannot be dis
lodged. and 1t is also the reason why
raiders always sell themselves into q
hole when they attempt roughhousing
the market.
Calamity Howlers Die Hard.
The calamity howlers die hard, but
they are coming over to the right side.
1t was great surprise to many of them
to find out that the country survives the
disappointment of not being obliged to
pay the railroads $75OOo.OOO to $1OO.OOO,-
900 year additional. Some of them are
even willing to admit that 1t will be just
as we'll in the end that the railroads do
be taken away from them on compulsory
wage increases and other operating ex-
penses. Altogether there is a willing
ness (somewhat reluctant, 1t is true) to
admit that all is not lost, and that there
is balm in Gilead.
Railroads are going ahead with their
financing as though nothing had happen
ed. Southern Pacific has already ar
ranged for $4,000 CO. :o CO. am and ST. Paul is
Central is in the market for anywhere
from $25,OOO.OOO to $4,000, 600 Erie had
no. trouble whatever In getting three
year extension on about $12,OOOO0O III
maturing short time notes. European
scribing to new bond issues and the
money situation on both continents seems
to be still in borrowers favor. There is an
abundant supply of capital for the big
to supply legitimate needs.
Institutions and companies that do not
come quite up to the high standard of
credit have to pay more for their money,
and it does not come quite SO easy Those
having poor standing complain that all
this talk about abundant easy money Is a
One earnest applicant for funds
for g. large amount was heard to remark
that money was easy until you tried to
get hold of some Of IT, in which event
sources of supply dried up quickly.
Larger Interests Holding Of.
news ITOHH " Hdu dH HI
portant bearing on minor fluctuations this
week. and the larger interests are holding
Off in many cases until they can get a
better line on political prospects. Uncer-
tainty as to whether there will be an
extra session of Congress became lead
ing market influence as the week ad-
vanced. 1t may be said with truth that
the business community breads a special
session. and will welcome a long recess
from Washington activity along legis-
lative lines.
Opinion in the financial district is far
from unanimous in approval of the Presi-
dents announcement that he would con-
vene Congress II his pet Canadian reci-
procity treaty failed Of approval. Just
why there should be such urgency in the
matter is not clearly understood. Strong
opposition to the agreement has arisen in
many unexpected quarters. and 1t is felt
that a few months given to discussion of
the problem might not be wasted, and
might in reality be a good thing. 1t is
felt that all the wisdom in this important
business proposition might not after all