Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-03-12
Nothing to Be Feared.

New FORK central action II WOulO dp-
pear that nothing need be feared from
general housekeeping along the same
lines. If there has to be wholesale divi-
dend reduction. as the tape would jndi-
cate then it had better be over and
through with. Such move would gre
ate neither surprise nor alarm. The
market is fully prepared for official &C
ton, and nobody is going to be harmed.
Such a cut would shift a proper share
of increased cost of railroad operation
upon the shoulders of owners. Chere
it belongs, just as it would belong III
a. private business establishment. When
a mercantile establishment finds it's net
income decreasing it does not ask gov
ernment aid or Congress Appropriation
to make up the loss. Why should the
railroads?
difference the scarehead newspaper re-
ports of the spectacular military and
naval demonstration toward the Mexlcsn
border If it had been directed by MI.
Roosevelt instead Of Mr.. TAFT the STOCK
market would be in state Of seething
excitement by this time. There would
have been ali sorts Of talk Of an imme-
date invasion Of the southern repubhc
under the pretext OF protecting Amerl-
can interests and assuming police con-
be full of annexation gossip and stocks
would be jumping Up and down in Wild
disorder.
Not Greatly Concerned.
AS 1t is, the stock market pays only
slight attention to the AFFAIR, and the
assumption is general that there Is
neither bloodshed. rapine nor conquest in
the demonstration; that it is merely
show of power for peaceful effect upon
the disconnected population of the Mex
lean republic, designed primarily 10 neip
President Diaz to maintain order. Inc
United States, Great Britain, Holland.
Belgium and Germany have prooaDiy
Sc O0O. 900 coo invested in Mexico, and In
vestors have sublime faith that their IN
terests will be safeguarded either 6S
this country acting alone or with the
hearty backing and cooperation Of the
other countries. protectorate over
Mexico is even talked Of. and with en-
tire calmness We have underWrhteh
Cuba and the Central American couhlries'
why not Mexico? The whole thing ap,
peals to Wall street as altogether natural
and something not to run away from or
get excited about.
That the stock Of American Sugar has
not broken all to pieces under the weight
OF wears of costly litigation. inside rob
berry and the forced restitution to the
government Of many millions of doliars
in stolen money Is one OF the "onue,n
of the hour. The stock has taken o,o"
d
tion. and only small fraction OF hoio-
ers of record have gotten out. 1t remdlus
to be seen whether the onicial ahhounoe
ment made this week that reserves Hau
to be drawn upon heavily 70 , pay ant s,t
erect. About Is per cent OF the STOCK
in American Sugar is held In New Eng
land and New York city. 1t IS WHEY
scattered and is in the hands or mui.i-
tude of people who are so accustomed 10
drawing their dividends every quarter
that they seem to feel perfectly secure IN
the permanency OF their investment; Al
most as though they held government.
bonds. About half the stockholoers arc
women. - too
or three of the larger banks is one or
the features which excltes comment.
The leading Standard OIL pank now
has a reserve Of about 40 per cent, or
nearly $4,000, 900, which is 10 per cent
above the legal requirement. Just why
this is being done is one or the thlhes
that puzzles the wiseacres, although II
is generally supposed that the cash Is
being piled up in preparation Ior the
Supreme Court decision as 10 tue w.
lidity of the trust. This theory is not
unreasonable. and it by no means FOL
lows that the accumulation is for stock
market purposes. The long neaoeo men
in control Of the affairs OF the monop-
oily probably have well dehned plan
for reorganization in case the Supreme
Court decides against them. and a big
lot of ready cash may be needed. The
impression prevails that the finding of
the highest court will be against the
trust There is nothing tangible upon
which to base such a forecast except
the general tendency Of judicial find
ings of legislation and of expressions
of popular sentiment all tend one way.
and that is for the closer restriction Of
corporate management and Tor the
suppression of outlawry.