Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-07-28
Wage Contest a Factor.

preston campaign.
Wage Contest a Factor.
One factor there is in the situation not
likely to be dismissed. however. It has to
do with the wages contest submitted to
arbitration between the railroads and
their locomotive drivers. Both sides have
been making ultra arguments, anxious to
score favorable points rather than mere
ly to clarity conditions. 1t is not apt
that review of the evidence or analysis
of conflicting pleas should be made here,
but what is at issue does concern the
security market to an extent that calls
for measurement in any consideration Of
either investment or speculative under
takings. Both sides are very much in
earnest. Especially is this true in GER
tain financial quarters where railway
finance is represented. And 1t can be
stated as moderate estimate that In the
event of determination adverse to the
railroads. decision establishing larger
labor charges, there will follow feeling
of such disappointment that 1t would not
be surprising If We were quickly brought
face to face with the free selling of rail-
way stocks; and the source of that SELL
ing would be such as to be readily trace
able to the increase in the cost of opera
ton, and because of its financial promi-
nence it might even start wave of in
vestment pessimism.
Some oracles have SO stoutly urged that
d
would bring ruin into parts Of the rail-
way world that there cannot fail to be
influence exerted upon the judgment of
people throughout the country who own
stocks, regardless OF the tact that these
ruin recitations may be only fairly re-
garded extravaganza. Upon the other
hand, If the arbitration result as railway
financiers desire it can be expected as
not merely possible but probable that
confidence will be recruited and the mar
ket for railway shares gain strength by
reason OF new investment absorption.
Thus for the stock market the result of
this arbitration can be history-making.
Exalting False Idol.
However this may come to be, upon one
thing there can be reliance-Wal street
has long time been exalting false
idol. Wise folk who acclaim themselves
the talent Of the financial world are for
ever insisting that recent dreary du.lness
attests that the public is out or stocks
by that meaning to say that current re-
fusal to trade is evidence that there IS
such antagonism to corporations that
W .despread doubt exists to the safety
of funds put into stock exchange securi-
ties. This oracular recitation has con-
tinually coupled with 1t the declaration
that stocks are In the hands OF q few
capitalists: wherefore market values
are dependent wholly upon the Whim OF
a group of speculative millionaires.
Then comes the final "argument-that
any Improvement in the market, any
warrant for improvement. can amount to
nothing more than mere instru-
mentality for the temporary boosting
of quotations in order to seduce out
siders to buy what the plutocrats are
anxious to sell. This sort of wild talk
could ordinarily have recognition no
where: but SO strong has been the Wall
street tension through recent times, so
abnormal the Wall street professional
hos 70 ho Cd tod hat to
queer talk has not only banned its
audience, but may be regarded actually
as even a creed among the posing CAB
blers on and off the stock exchange.
To the men with independence and
sanity who need do but a little investi-
eating there comes thorough revelation
of the foolishness. the stupidity. OF
these crowding proclamations. Truth
history-never before in history in any
part of the civilized world-have SUBJ
stantial investment securities been so
well distributed. so widely absorbed. as
mean that we have more SPECTATORS
than formerly-there are far fewer.
What is signified is that stocks now
here-are owned outright In proportion
beyond precedent.
Stocks for Investment.
Testimony as to this is abundant. is
easily obtainable. Personally I have
today. for example. had the oppor-
tunity to scan the shareholding list OF
an important railroad. figuring as aux
iliary In one OF our half dozen greatest
systems. Succinctly this was the rec
ord there: Less than 10 per cent OF
the stock is in Wall street, whether In
the names of brokers' bankers or
spectators. Less than per cent OF
the total number Of shareholders hold
as much as a thousand shares apiece.
nr,t ne hn toto h. 1S Uo11
and by the outside public combined
over So per cent is in the names Of
people (and they are scattered the
country over) representing less than
100 shares each-more than half the
total list of stockholders have less than
fifty shareS anieGe E,ullN third of