The Washington herald., 1912-03-18
WALL STREET NEWS
General Conditions Favorable, So
Railroads Are Induced to Better
Their Equipment.
BY THOMAS c. sHoTwELL.

New York, March 1T-General condi-
tIons being such as to make the rail-
roads buy equipment freely and to
quicken all departments Of business, it
Is worth while, after many months. to
inquire as to the possibilities OF particu-
lar properties Naturally the bargains
will be hunted out first. 1t Is on this
theory that Eris has been purchased so
freely the last week The rise has not
been due to the sudden discovery Of its
value so much as TO the sudden realiza-
ton that the time for pessimism has
passed. Even with its recent advance,
Erie is two points under the high price
OF last July. The general public is Just
discovering what the insiders have
known for months, that is, that Erie Is
being made into q real railroad 1t has
been in the hands of unofficial receivers
for several years and has enjoyed dras-
tic reorganization.
Most of the talk OF deals Is no doubt
idle The Hartman estate, for instance,
sold It's Erie more than year ago and
50 cannot be selling it now, as Wall street
imagines. Official denial Is obtained from
the Canadian Pacific OF any intention on
the part OF that company or any OF its
subsidiaries to buy Erie as reported Some
definite announcement Is expected on
Erie this week. and 1t is liable to take
the shape OF a statement that arrange
ments have been made to dispose of a
big block Of the convertible bonds. Such
a transaction would be Immensely bull
ish, as it would put Erie positively in the
list Of dividend payers three years from
now.
Hartman Lines Gainer.
As the chief beneficiaries OF the Pan
ANA Canal, the Hartman lines will show
the effect of good buying as soon as the
public gets rid of the remarkable idea
that the canal is going to injure any
railroad. The canal may cost 800, 600 900
before II is finished. and II the govern
ment had not done the work It would
have paid the transcontinental railroads
10 have put up the money to dig II. As
the work has been done, 1t is as II the
railroads had been presented with $780,.
10000 worth OF improvements without
cost. Although the Hartman lines will
get the lions share of the Panama Canal
boom for a few years, all the other lines
are alive to the situation and will share
largely.
The canal Will not only be the making
OF the transcontinental railroads and OF
the Pacific Coast States. but It will solve
the labor troubles OF the Atlantic Coast
States by diverting the cheap labor to
the far West. where II Is needed II the
anthracite miners will only sit down and
consider the Panama situation they will
realize that they have only three years
to wait until they will be more prosper
Gus than they have ever dreamed OF be-
ing. In view OF labor developments. the
terms offered by the operators should be
Welcomed.
This being the situation in business.
agriculture, and labor circles, investors
can afford to lay plans now for the great
prosperity that is assured. Fluctuations
such as the stock market has seen the
last few days are nothing more than
symptoms that the speculative spirit is
waking up. Speculation has made the
United States what It is. and there Is no
reason TO believe that 1t has died out in
the least degree. It has simply been ly-
ing dormant awaiting its opportunity.
which now seems to be at hand.