Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-08-11
MARKET JUST WAITS
That Is Only Interest Traders
Have in Politics.
BUSINESS RECORDS GOOD
Satisfactory Situation Is Shown
Along Commercial Lines.
RAILWAY EARNINGS IMPROVE
Day by Day It Is Shown That Past
Records Are Broken-Stocks
Hard to Get.
BUSINESS RECORDS GOOD
RAILWAY EARNINGS IMPROVE
BY III. ALLOWAY.


politics is to await placidly one cam
paign preliminary after another. What is
chiefly notable, meantime. is the sus-
tanned attitude of being disposed to well
come every development as satisfactory.
accept every announcement as good
news. Formal Wall street letters to eli
ents even run keynote quotations from all
or the three arrayed leaders-each quota
ton avowing sentiments agreeable to
financiers.
Ihese bulletins quote Mr.. Taft as say
lhs: Mere b1gness of plant, mere big
ness OF company or corporation, does not
constitute a violation of the law
Mr.. Wilson is quoted as saying: Il dc
not think that war should be made on
anything: Our problem is one of euuite BILE
adjustment. l do not understand that
the policy of our law was ever directed
against combinations as such. against
their mere size, but only against combi-
nations in restraint of trade"
And the Roosevelt declaration is con-
centrated in the terse: "Our aim is to pro-
mote prosperity"
Business Records Stay Good.
Business records stay good-nothing abb
normal-Just satisfactory. And this ex-
hibit is true and manifest irrespective of
whether what is involved is labor or
money. general merchandise or moving
freight, steel rail orders, railway equip
ment purchases or having to do with any
other important trade department.
Railway earnings brisk up. All the in
dexes are agreeable ones None may be
sufhcient to fire enthusiasm, but that the
conditions are upon the right side of the
business ledger seems ample warrant for
a new feeling of confidence in Wall
street.
True further it is that though trade ex-
pands there is not yet any material show
OF increased percentage of profit for
prices are still low, from the manufacture
ers viewpoint. but they who by expert
ence may be considered as authorities are
very generally disposed to say that the
outlook is SO materially improved that We
shall soon see most industrial interests
able to follow the lead Of the United
States Steel Corporation in advancing the
price of product. This betokens an eX-
pectation of good feeling, not from the
standpoint of the consumer, of course,
but Wall street naturally halls the antici-
patton as promising remedy for the long
continued show of poor net earnings.
Not long ago professional talent upon
the stock exchange was agreed that with
continuance. of net earnings at their low
ebb 1T would not be possible for the cor
porations of the country to maintain the
dividends they have been paying. On this
account, therefore. any expectations,
however fain, that turn has come in
the earning tendency is naturally welcom-
ed, can even be regarded as a dominating
element in the formation of financial
sentiment, whether from the investment
viewpoint or as merely a speculative in
1uence
Report Revenue Gains.
No feature is more noticeable in cur
fact that virtually every great system is
reporting revenue gains. Gross earn
ings increase largely and net increase
Observation-Disclosures it is undenable
that the percentage of gross expense
very much outruns net. Upon the
theory that the net does not keep pace
with gross some Oracles are insistent
that the exhibit is poor, that railroads
are still unable to emerge from hard
times experience Day by day the head
lines on Wall street news bulletins run
uniformly to the effect that this. that
or the other important road reports gross
earnings beyond past records. In this
weeks schedule. for instance. are New
York Central and Delaware and Hudson,
one a system having to do with general
business, the other chiefly a coal pro-
Queer and carrier. At any rate this shows
that there is business in the country, that
the railroads are called upon to provide
for more and more transportation. 1t is
much urged by the pessimists, however.
that bigger tonnage and bigger revenues
amount to nothing unless there is such
a better percentage as will tell in net
earnings. From this same critical quar-
ter comes. too, continuing recitation that
the interstate commerce commission. with
prohibition of increased traffic rates
stands as a fOrbidding factor.
Yet even a cursory glance at the tabu-
lated figures that come in day by day
will make plain that there is manifest
observation-disclosures in virtually every
case there is some expansion in net earn
ings. And this is not all-for while the
facts may not yet be generally appreci-
ated. the truth is that the railroads of
the country are now making larger eX-
penditures than at any time in recent
years for maintenance in every depart
ment, whether upon track equipment or
elsewhere-this larger expenditure affect
ing the net figures. 1t can be said with
positiveness, therefore that railway con-
ditions are intrinsically better extensive
ly better. than shown for q considerable
time past. Railway revenues-in uni
formity with other business Indications
are getting upon the right side.
Stocks Are Scarce.
In the stock market itself there still
shows one exceptional significant feature
Stocks are scarce, in SO far as Wall
street is concerned When at any time
purchases are undertaken in any sub
stantial way the result is an advance in
price Virtually no volume of the older
standard issues can be discerned ready
for sale in any stock exchange quarter
This. of course, is not true of a host of
new, unseasoned stocks, which have re-
Gently been brought to Wall street for
distribution. and which still lag in the
offices of brokers, not only unsold but
apparently unattractive to investors
In such stocks Reading, the Hill
shares, the Vanderbilts, Pennsylvania
issues and the like, it is the uniform ex-
perience that purchasers have to make
the concessions Thus a relatively small
buying order is found to affect the mar
ket to the extent that bids have to be
raised before execution can be accom-.
plished There is just now no nervous
ness in the market anywhere so far as
the owners of securities are concerned
So much ramming and jamming has pre-
ceded and so many peSsimiStic fables
have been invented and distributed that
holders of stocks refuse utterly to give
any heed to any bugaboo. They have car
ried their holdings through blue times
till nine out of ten of them seem now
fully persuaded that whatever change is
coming to be change for the better.
Here is a valuable component for the
base of a better market.
Yet up to this time another character
istic, equally distinct, shows continually
the moment buying order Is completed.
though quotations have been incidentally
lifted, the sequel shows of such listless-
ness as permits quotations to drift back
to lust about the level where they ruled