Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-02
Price Average High.

fr1ce Average d1Rn.
Considering the fact that within the
last twelve months more than 1000
100000 in mortgage Indebtedness has been
put behind railroad Stocks, it would ap
pear that the average of prices is very
high. especially as railroad earnings, both
net and gross. show a falling off, A
statement made this week by high statis-
teal authorities shows that the net In
come Of railroads has fallen off more
than S17.OOa,Oo since the LIST of July
year ago. while interest on bonded in
debtedness has increased more than $751;
0DGoo. The significance of this fact Is
bearing in on the intelligence of the
street and is having marked effect 1t
is no doubt the cause of considerable re-
cent liquidation.
1t is true that In some branches of in
dustry slow Improvement is going on.
but 1t is so very slow that the general
public feels sense of disappointment
and encouragement. The tariff agita-
ton, according to the Washington dis
patches, has again assumed form to give
a feeling of unrest to the manufacturing
interests, and a perceptible halt is quot
ed in that direction, although n small
increase in orders for steel products is
reported and given prominent place In
the market literature of the hour.
Money for Favored Ones.
within reach of favored borrowers, who
still feel that it is safe to buy dividend
paying stocks with funds costing and
3 per cent. and allowing a scalp of one
to three points on the transaction.
Banks arc not so anxious as they were,
however, to supply Wall street with
speculative capital. the last statement of
condition of national and state banks
showing almost dangerous mutations of
Loo Sfn mi
New York, but in other large centers.
The time is approaching when the drain
on New York for crop moving pur-
poses will begin, and the banks are al
ready feeling the necessity of preparing
for that call This is not shown so far
in any perceptible hardening of rates.
but rather in a drawing in Of sails and
a suggestion to borrowers that 1t might
be wise to curtail commitments. AS long
as matters run smoothly banks can get
ais very nicely. even with a very pal
pable overC~Sden of stock exchange
loans. but there is where the pinch first
begins when thu necessity for contraction
arises.
Crop conditionA have improved decided
~. The crops, however. have not wor-
red Wall street Merry much, although the
commodity markets show continuous dis
quiet on that ad,ount. Wall street is
Injured to the ANIMAL flood of crop dam
age estimates frotl high-priced experts
and pay scant attention to their hard
luck stories. 1t has been noticed that the
Lord is usually kind to the farmers and
that somehow they manage to come out
at the end of nine years out OF ten with
average crops and that they continue to
grow rich. regardless Of hoV the rest Of
the country may fare.
Bears Recovering Nerve.
The hears are again recovering their
nerve and at current high prices are be-
oh tyhf
develop into an energetic and effective
campaign. They are trying TO make
themselves believe that all good news
that can happen has been discounted and
that hereafter the chapter of accidents
will run against prices. These premises
are to hold good until big crops are
actually harvested and Congress gets
through tinkering with the tariff sched-
ules, or at least gives a line on what
may be expected and makes 1t so clear
that manufacturers and merchants can
20 ahead without fear OF serious loss or
embarrassment The bear theory seems
to be gaining recruits.
The decision Of the federal court
validating the Union-Southern Pacific
work on, but its effect has not been last
ing. except as relating to a few trans
Mississippi lines directly concerned.
Even there the effect is not lasting and
the speculative contingent tihl JuIhPeu
in to buy on the announcement OF the
decision has been taking profits freely
on the rally. 1t was hoped In the street
that the government would be willing to
rest with the decision of the circuit court
In this merger case. but 1t appears that
an appeal Is to be taken and the matter
cannot yet be called settled. The
famous case against Hartman Is to be
dragged through another year or two
Probers No Longer Joke.
Those persistent Washington investiga-
lions continue to disturb the peace of
mind of Wall street. They have ceased
to be jokes and no longer excite hilarity.
except among the ungodly who like to
see the indicators of great wealth"
ripped up the back and otherwise man
handled. 1t is even whispered among
the unregenerate that the time may come
when it will be really unpopular for very
wealthy persons or combinations to steal
very large sums OF money through the
abuse of business machinery. This day,
however, seems very remote to most
people, and the best the multitude can
hope for in the near future is to have
the lucky ones made as uncomfortable as
possible in the possession of their multi
millions. This is an unrighteous state
of mind for the multitudes to work them
selves into and Is merely mentioned IN
this letter as indicating the location OF
one of the flies in the Wall street ONT
ment.
genheim uncorked himself for the usual
interview. 1t was very much mixed
output. in which he said he saw bounding
hopes for the copper industry and hell
for almost everything else on the list. He
Alaska He had Just heard Of the deci-
sion of the federal land office to throw