New-York tribune., 1911-10-02
FINANCIAL MARKET
Big Bears Appear Satisfied with
Recent Profits in Stocks.


tors. through Mr.. Morgan and Judge
Gary. and the conservative remarks
Of President Taft in his Waterloo
speech regarding the enforcement Of
the Sherman law convinced many minds
that further agitation of the trust
question would not be effective in
bringing investment securities upon the
market, while the known heavy COW
ering of shorts by prominent operators
who have been bearish for weeks and
the development of powerful banking
support created an impression in various
quarters that big bears were quite we'll
satisfied with their profits and were
willing. for the present at least, to let
the little bears. who always come in at
the tail end Of a downward movement.
handle the short side OF speculation.
There are some people, however, who
persist in the theory that current un-
certaintles In politics and the labor stu
alton will bring about lower prices be-
fore anything in the nature of q sus-
tanned bull campaign can be inaugu-
rated.
If the business men and financiers put
their shoulders together. as President
Taft suggests, to promote the business
prosperity OF the country by frowning
down attacks that are engendered not by
a real desire to eliminate abuses, but
by wish to arouse in the people an
unjust prejudice, confidence will not be
long in returning. The following from
Mr.. Taft's speech ought to be read and
well digested by every man in the coun-
try: Business is hating now. There is
doubt and distrust among investors, due
to fear of blind enmity toward sue
cessful enterprise. What is the remedy?
1t is the restoration Of confidence be-
tween the classes Of people who have
been opposing each other in times past
who now, after the reforms are initiated
and are in process Of being effected,
ought 10 come together in amity and
make the best use Of the enormous re-
sources we have in this country for the
promotion Of general prosperity and the
securing and encouragement Of indlvid-
Ual happiness And employees should
ponder over this, likewise from the Pres
ident's speech: We must have invest
ments from which to secure a large
wages fund, which is needed to support
the wage earners We must inspire in
the business men who control those in
vestments the confidence that they will
not be driven out of business" The re-
turn from investments, however, will
tend to decrease if our corporations are
TO be necessarily called upon by labor
for increased remuneration.
Assuming the country is not facing
ueriod Of widespread dividend reduc-
tons, the market presents many attract
tive opportunities for investment pur-
chases in both the stock and bond de-
partments. Railroad managers ascribe
the heavy falling off in earnings avail
able for dividends on the part Of most
companies in the last fiscal year and so
far in the current year as almost wholly
due to the increased wages paid to en-
ployes. Mr.. Mellen, president of the New
York, New Haven & Hartford. in his re-
marks to stockholders In the company's
annual report, states that the increase in
wages granted TO employees has materi-
ally added to the cost Of conducting the
company's business. the amount paid out
in the last fiscal showing gain Of ST.
521,5l3, while the roads income account
exhibits a deficit of 1868 The Chi
cago & Northwestern supplies one of
the few instances where, in spite Of q
large increase in wages, an actual de-
crease in the amount paid for labor was
recorded in the last fiscal year. In
creased compensation amounted TO ST.
111,316, but this was more than offset
by a decrease in wages paid Of S1,312.2S7
on account of less time worked by en-
ployes.
In view Of the heavy cost TO which the
railroads have been put in the last year
through the payment Of higher wages
and the higher price of materials. at d
time when gross transportation receipts
have not been unusually heavy, new de-
mands for better pay for employees will
not receive the sympathy OF the general
public. Railroads have been compelled
by law to reduce freight and passenger
charges, and at the same time they have
advanced wages and been compelled TO
pay more for work involved in better
ment and Improvements and for supplies
and materials. 1t would seem as if II
were a good time for labor leaders TO
make their living in some other way
than by creating discomfort among rail-
road employees and forcing them into
strikes which their common sense must
tell them are unwarranted and opposed
10 their own best interests and the in
terests Of the public 1t is no wonder
that the attitude taken by labor discour-
ages the transportation companies from
entering into heavy contracts for equip
ment, betterments and Improvements.
Total transactions in stocks last week
amounted to 6,G2S, 562 shares, the heav-
lest dealings for any week in the cur
rent year, of which United States Steel
common supplied a little less than one
third. At the close the larger number Of
issues showed net gains, generally sub
stantial figures. steel common gaining
10 points from its low point Of Monday.
which was the low Of the year The up
ward movement that started with the
United States Steel Corporations state
ment was not checked by the announce
ment Of the declaration OF war between
italy and Turkey, but If this unfortunate
development should involve other pow
ers there doubtless would be enough for