Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-12-31

orders in. Steel makers do not even
pretend to object to making long time
contracts for their output. Railroad
earnings. especially of western systems.
are again showing up badly. and the
eastern trunk ines are barely holding
their own. Tariff agitation is on and
the belief prevails that big insiders in
Wall street very materially reduced their
speculative holdings during the rising
market of December. Altogether the
bears find that they have plenty of talk
Ing material. and they are making the
best of it. although as yet there has
been no important recession in prices.
The change which has thus far taken
place is mainly in sentiment.
and seemingly well supported theory pre-
vails that the really important people OF
Wall street are planning for a bull cam
paign to continue through the months
of January and February. Money is
going to be abundant and fairly cheap,
and several Of the big railroad systems
think the time opportune for some needed
financing. This applies particularly to
New York Central, which is putting
through its grand scheme of consolida-
ton of the Vanderbilt properties, blend
ng them into a giant combine and round
ing into shape what will be the most CO.
lossal rail consolidation in the world.
Need of Vast Capital.
To accomplish. this will require vast
amount Of new capital. A campaign to
this end has been under way for several
months In order to help the play along
and to make good showing of earnings
in the face of adverse conditions. Cen
trail has been Systematically starving
itself" in directions which do not i'm
mediately show themselves or appeal to
the understanding of the public. New
York Central is making it's biggest cut
in the matter Of maintenance. The official
statistics of the interstate commerce COM
mission show that the main system
80 per cent of gross revenue to between
% and 20 per cent This has been going
on since the beginning Of July, and on
the main line alone it is making differ
ence in net earnings at the rate of about
S.. 100000 a year Centrars gross rev.
enue for its main line approximates $780,
100000 per annum. 1t is therefore easy
to figure the net Saving on that basis.
Figures are not available as to what
is going on in connection with the sub
sidiary lines. With Il big exhibit of
earnings it may be possible to sue
cessfully float a huge bond issue in con-
nection with the consolidation. That
some such plan is definitely under way is
generally believed in Wall street. 1t is
also believed that the deal will be pulled
off during the months of January or Feb
ruary unless there is some fall down in
the arrangements.
Harmony Among Factions.
The most powerful financial factions in
America are interested In New York
Central and associated enterprises. Al
the present writing the factions in the
financial district are in closer harmony
than ever before and there is not likely
to be any friction in the carrying out
Of it's huge project of the nature out
lined. With Central taken care Of and its
shadows removed from the situation
there will be palmer sailing for other
candidates for first capital is the rea-
soning. The element of competition FOL
available capital will be eliminated, ant
that accounts for good deal in the
money market, as well as in other
Railroads are looking forward rather
hopefully to relief from political op
preston without particular effort or
their part the public is becoming edu
and hampering the freedom of railroad:
to expand and progress it is injur.ne
itself primarily. Railroads are ac
knowledged to be the paramount agen
for the development of the country. anc
IL they are to be Systematically starved
they cannot do the work they will be
called upon 10 perform when bushes:
revives and the country starts in upor
another period of advancement. Kali
roads as a whole are i'll no shape to DE-
a much larger volume of traffic than i:
now offered them. ManifeStly they can
not do better until they have money
with which to extend themselves and i'll
crease their facilities.
If their earnings are to be diverted
to other directions under mandate OF
, law. and they are to be prevented from
increasing earnings to meet demand:
made upon them for increased facilities
then the people themselves will discover
that they are to blame more than the
railroad owners.
Knife Cuts Both Ways.
IT is a two-bladed knife-this railroad
regulation-and it cuts both ways. Wher
the hurt begins to be felt, as IL surely
will be as times improve, the people who
are behind the politicians will be obliged
to move for the relief of railroads ant
for their own protection. y change o
sentiment is already being strongly fel
in that general direction and is reflected
in the editorial expressions of the news
papers of the country.
There is pause in the conversational am