The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-10-29
RAILROADS LEAD
STOCK RECOVERY
Advance Comes After Extreme
Depression OF Previous
Session.
INVESTORS ARE WORRIED
Trust-Busting Activities Of Gov
eminent Threaten Condition
of Chaos.
INVESTORS ARE WORRIED
Ispeelal to rhe rimes-plspateh.1

rev YORK, october 2o.-Under lead
ershlD OF the railroads stocks re-
covered somewhat to day from the eX-
IRENE depression OF the previous scs-
sion, Union Pacific and Canadian Pa
cihc were leaders. the latter having
All extreme advance of more than
three points, most Of which II held.
Some specialtics advanced, notably Ma.
tional Biscuit and Can preferred. Erie
was higher. although the report of
operation for September showed u
decrease in operating income. Steel
was barely steady and did not show
the rallying power that was expected
after. the severe break OF the previous
cover.
Further statements by President
Taft and Acknowledgement Wicker
sham that all violations of the Sher-
man antitrust Law would be punished.
whether committed by capital uI
labor. tended to worry investors and
prevent anything like general re-
covcry
Suit by the government TO dissolve
tho United States Steel Corporation
caused a collapse of prices in tho
stock market late In the week. The
railroads held relatively firm in this
break, and even the industr!als dis
played more vitality than had been
expected. Steel common. that closed
the night before the suit at 5sl-2,
broke only Ave points in the first few
minutes OF excitement. although it
worked lower later. Stocks OF ind.-
pendent steel companies were weak.
and there was considerable selling OF
the shares of other industrial com
panics which II Is now generally adj
united must be dissolved If the Steel
Trust must.
Directors OF the Steel Trust refused
to make any statements at first OF
their Intentions in regard to the suit.
and this forced the public to rely en-
tirely upon the official statement OF ]
p Morgan and T. II. Gary made a
month ago in which they expressed
thems lives az believing in the legality
OF the Steel Trust.
Regardless OF opinions that may be
held OF the legality of the Steel Trus,
and OF other corporations. the hiing
OF the suit by the government puts all
these corporations on the defensive
This means an era of litigation and
chaos in the business world Invest
ments Will be destroyed temporarily.
even though the outcome he favorable
to other classes OF business. At pres
cEt people have sold SO many stocks
that they Will not De hurt severely,
and the general public Will suner the
full blow, OF the drain in the stock
market that is now inevitable II is
posslo!e that investors are involved In
a period Of distress that Will extend
over several years. The suits are, OF
course. chiefly for political effect be-
cause II the corporations are illegal
their Illegally has been known for
twenty years, and they have gone I'M
molested until the politicians saw that
IT would be impossible to hold their
positions unless they made some at
tempt TO enforce the laws. This is not
trrr Z.
enforced. but investors must not lose
sight OF the fact that the politicians
arc more concerned over retaining
their ofiices than they are over the
interests OF the public. AS a result OF
the agitation. values of stocks have
become purely matters OF guesswork.
and IT Is impossible for any investor
to know how much he is worth or
how much his income is liable to be
for several years. The Attorney Gen
eral has announced that about hun
dred" of the big corporations must he
dissolved. This may restore competi-
ton in business. but in the meantime
II Will establish chaotic condition in
the security markets and in business.
for when these suits are settled no.
body Will attempt anything more than
day-to-day transactions.
Millions of American money rem
rations will go to other countries for
Investment. In the past week the Prus-
sian government has borrowed SEQ
100000 in New York. Railroads have
plan ed to reduce operating expenses
in the hope of being able to maintain
their dividends In spite OF reduced
gross earnings. and all signs point to
the pling Up of vast amount of idle
each in the banks. While money rates
Will be cheap, the excess of all this
idle money will be no incentive to do
business. for the owners will not care
TO risk IT in enterprises themselves or
lend II freely on collateral. the value
Of which there Is no way OF hndinE
out for several years
New York. October 2s.-Money on
call nominal. Time loans easier: sixty
days, l-443 IL per cent; ninety
days, 1893 81; six months, san
4. Prime mercantile paTer Lea
IA. Sterling exchange easy, with
actual business in bankers bills at
S4,s360 for sixty days. and at S+s6S5
for demand. Commercial bills. s4.S27-S.
Bar silver, SIS SIS. Mexican dollars 40