Evening star., 1912-07-07
FUNDS HARD TO GET
Railroads Have Problem to
Raise Money for Equipment.
COST OF LABOR INCREASES
It Is Now Chief Element in Expense
Of Transportation.
BUYERS FAVOR MDUSTRIALS
Burdens Not Believed to Be So
Great as Is Borne by Rails.
Retirement Of Hill.
BUYERS FAVOR MDUsTRIALs
BY w. g. NICHOLAS.


problem. which is interesting financial
and railroad magnates, is the onerous
condition In which the railroads and their
hackers find themselves. A somewhat
scattered campaign Of education Is on to
enlighten the people as to the expressions
under which the transportation interests
are suffering, with a view to building a
background sentiment for amelioration.
1t is making slow headway and may not
be effective until the public is brought
face to face with the scarcity of cars
to move the growing trahic-a blockade
due to the inability Of railroads to raise
money with which to buy equipment.
This is going to be . slow process and
may take years before the relief asked
for by railroads Is granted. Some time
the issue may take the form of an al
tentative between relaxation Of pressure
on the transportation companies or gov
ernment ownership. 1t was not SO very
long ago that federal control and owner
ship Of telegraph companies was very
much alive. The late Mr.. Gould expected
1t before he died. Public ownership OF
public utilities is clearly the drift OF popu-
lar evolution. Railroads are at no pains
to conceal the trouble they are in, and
the facts and figures they are offering are
but thus far there has been not shadow
Of relief.
The cost of labor is daily increasing
burden. 1t is the chief element In the
expenses Of transportation, and new de-
mands are still pressing relentlessly. Dur
ing the fiscal year ending June 80 rail-
roads earned about $50, COO 600 more than
in 191O-11, yet all that went back into
the business and about SIG. 600 besides
out Of net The prospects for the year
$hok hna &,rrk frv, 40
perience than last year. One Of the worst
trials that railroads are called upon to
endure is the strike fever among skilled
shOpmen, form Of disease that Is be-
coming epidemic h in man, many parts Of the the
over a long strike of that sort, The
Hartman systems are all suffering at
the present time from the curse. The
stocks of every road In the system drag
back on that account. The day of set
tlement Is hurrying forward.
1ndustrials in Favor.
Industrial stocks continue to be the
favorites in speculation Attention has
been called to this feature in previous dis
patches The tendency is becoming more
pronounced as time goes on. Industrials
have their troubles, Of course, from local
regulations, but their burdens Go not
compare with those borne by the rail-
roads, and consequently the gambling
money goes in that class Of paper prefer
entially This development Is mentioned
again because of the fact that 1t is GER
tain to be Of growing Importance. The
line OF demarcation between the two di-
visions of the market is becoming plain
to all observers. Not everybody has taken
tie trouble to dig deep for reasons but
there is general comprehension of the
underlying forces that are at work for
the upbuilding Of one speciality at the ex-
pense of another. Investment and specu-
lative capital gets wise early in the game.
Its conversation is the language Of the
tape. There can be no mistaking its
meaning
The market has he'd remarkably well
in the face of more or less violent poiit-
cal agitation continued throughout a
period of several consecutive weeks.
Prices receded moderately for time.
heavy miscellaneous buying, and also
the concerted buying Of the capitalistic
class. Those who make study Of mar
ket conditions seem to think that 1t may
have worked into what is technically
known as an "overbought'' state, and
that in the natural order Of things there
will be a serious break before big gen.
eral advance can take place. This IL
merely a matter Of opinion. however, and
as the majority is taking the bullish view
at this writing the undertOne rules gen.
orally firm. The expectation now is that
there will be a quiet, strong market
throughout the entire presidential cam
paign, instead of a protracted period Of
tumult and excitement. This also is
opinion.