The Washington herald., 1912-05-06
WALL STREET NEWS
Stock Mark + Acts Well Under Bears
Onslaught in the Last
Few Days.
Rr THoMAs Q. sHOTWELL.

BY THOMAS =. shOi" bLL'
New York. May L-The stock market
has acted well under assaults Of the
bearish party the last two days Of trad
ing. Tho inspiration for attacking the
market was found in the great physical
damage done by the food In the Mis-
sissippi Valley. railroad property and
farm buildings and Implements have
been destroyed beyond precedent TnS
losses II this character will run nto
the millions. They are fresh In the pub
lie mind, and the total Is staggering 10
persons who do not look beyond the
flood to the great crops OF whtch the
flood is a promise. The season for plant
ing corn is now Just in full swing. Corn
can be planted during the entire month
of Nav and up to the middle Of June in
some sections. so that there is plenty OF
time to plant all the land now under
water. An increase OF 100000 bushels
in a crop OF corn will more than repay all
the losses caused by the food. and II
will be strange II the corn crop Is not
q, ,0OO,0 900 bushels greater than last year
st the very least. The market Is there
fore being attacked largely on senu-
ment.
In addition to the food situation. labor
troubles are being magnlfed beyond al
reason by the bear party IN the STOCK
market. The bankers who have been
foremost in advancing the market have
kept in close touch with the workingaen
and know that there is no desire for sert-
Gus trouble. The anthracite miners arc
already anxious to return to work, even
though they are compelled to make more
concessions than were outlined IN the
agreement which some Of the mine lead
ers now seek to repudiate. The locono-
tive firemen and engineers will be COM
PEELED BY public sentiment TO arbitrate.
II Is probable that they will get an In
crease OF wages, but that increase VIII
be used by the railroads as basis for
demand for higher freight rates.
Freight Rates VIII Rise.
A demand for higher freight rates this
year will meet with public approval All
the railroads have shown reduced net
earnings, and 1t is known that they need
equipment Immediately or they will be
unable TO handle the big business ex-
pected in the autumn. With business
even at its present moderate volume, the
railroads have no equipment to spare.
c. .ongestion of freight will be beyond
precedent by the end OF summer unless
measures are taken at once to provide
equipment. The roads cannot expect 10
float securities for this purpose unless
The government, by taking charge Of
the railroads and fixing the rates. has
assumed responsibility for those prop
critics that II cannot evade- II the re-
sponsibilIty for rates were left with the
roads, investors could have no claim on
the government. But having taken
charge. 1t is a moral duty Of the Inter
state Commerce Commission to see that
the roads are permitted to earn much
money to keep the property in good con-
dItion.
The copper situation is one Of the
bright features just now. One must dis
regard the means used TO bring about the
situation that exists, but the situation
Is really healthy from a trade point OF
view. Consumption OF copper metal in
the United States is under the normal.
and II is only reasonable to expect a
very sharp increase IN the volume con-
sumed. This win be particularly notice
able IL the railroads are permitted to IN
crease their freight rates and thus get
money to make necessary improvements.
The copper producers are sold out well
into the month OF July. The stocks look
high when compared with the prices at
which they sold a year ago. but copper
is nearly 4 cents pound higher than 1t
was at that time, and all Of this In
crease OF the metal has been added to
the net earnings.
steel Trust Report.
Much ado is made over the had report
Of the Steel Trust for the first quarter
OF the year. This report Is worse than
most persons expected, but It was a
month old before being published. and
the important bankers had month to
prepare for II. Furthermore, the low
earnings were due not to bad business
but the low prices for a record volume
OF business. The bad Steel Trust re-
port is the biggest bull argument on
the general stock market that has de-
veloped q months, because It means
that purchasers Of steel are getting big