The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-05-06
FLOODS CAUSE
MARKET ATTACK
GREAT PHYSICAL DAMAGE DONE
STARTS BEARS IRON saw
AGE oNHoADs.
HAS LITTLE EFFEC T
PRICES STAND Vr WE'LL UNDER
ASSAULTS LAST TWO DAYS OF
WEEK. SHOWING HEALTHY
CONDITION.
HAS LITTLE EFFEC I
Nv THOMAS G. sHoTwFII.


NEW YORK. May 5.-~TThe stock
market has acted well under assaults
of rhe bearish party the last two days
of trading. The Inspiration for at
lacking the market was found in the
great physical damage done by t.
flood In the Mississippi Valley. Rail-
xcad property and farm buildings and
Implements have been destroyed be-
ynnd precedent. The losses Of this
character Will run inro the millions.
They are fresh In the public mind and
the total is staggering to persons who
do moi look beyond the flood TO the
great crops OF which the food is
promise. The season for planting
corn IS now just in full swing. Corn
can be planted The entire month Of
May and up 10 the middle of June
in some sections, so that there Is plen-
ty Of time to plant all the land now
under water
In addition to the food situation,
labor troubles are being magnitied be-
vond all reason by the bear party
in the stock market The bankers
who have been foremost Ia advancing
the market have kept IN close touch
with the working men and know that
there is no desire for serious trouble
The anthracite miners are already
anxious 70 return TO work. even
though they are compelled TO make
more concessions than were outlined
In the agreement which some OF IN
mine leaders now SEX TO rpudiate. The
locomotive firemen AID engineers will
be compelled by public sentiment TO
Naroitrate: II II probable that they will
Eet an increase Of wages nut that In
creasss VIII be used by the railroads
rs basis for demand for higher
freight rates
Ready for Higher Freight Rates.
A demand for higher freight rates
this year Will meer with public ap-
prevail. All the railroads hav. been
reduced net earnings aud IL IL known
that they need equipment immediate
~ ar they Will be unable to handle the
big business expected In the autumn.
With business even az tts present
moderate tolume, the railroads have
no equipment TO spare Congestion
ri freight will be beyond precedent
by the end ~ summes unless measures
are taken at once to provide equip
rnent. The roads cannot expect to
: a4at securities for this purpose ur1-
less they car see larger net earnings
Responsibility on Government.
The government by taking charge
~ the railroads and fixing the rates
has assumed responsibility for those
properties that IL cannot evade. II
the responsibility for rates were left
with the roads investors could have
no claim on the government. But haV-
ing raAen charge, it is a moral duty OF
the Interstate Commerce Commission
10 sec that the roads are permitted to
earn enough money to keep their
properly in good condition,
The copper sitTSat5or is on. OF the
bright features Just now. one must
disregard the means used to bring
about the situation that exists. but
the situation is really healthy from
trade point OF view Consumption of
copper metal In the United States Is
under the normal and 1t Is only rea-
sonable to expect very sharp in
crease in the volume consumed This
will be particularly noticeable if the
railroads are permitted to increase
their freight rates and thus get money
10 make necessary improvements. The
copper producers are sold out well
into the moprh of July. The stocks
hook high when compared with the
prices at which they sold year ago,
BAT copper nearly four cents a pound
higher than it was at that time and
all Of this increase OF rhe metal has
been added TO the net earnings.
steel Report Poor.
Much ado II made over the bad re-
port ST. the, steel trust .t0r the first
quarter Of the year This report is
worse than most persons expected, but
II was q month old before being pub
llshed, and the important bankers had
month to prepare for II. Further
more. thel ow earrings were due nor tc
bad business. bat the low prices for
il record volume Of business The bad
steel trust report is the biggest bull
argument on the general stock mar
Iet that has developed for months. be
cause it means that purchasers OF
steel are getting dig money for the
money they e&pend The orders on
- hooks 81 The trust .ara such. say
she MA aagenlent. To make II certain
the dividend on the common stock will
re earned for the full year with a neat
surplus.
Prosperity Growing.
With copper ami steel business at
such high volume and with an In
crease Of freight rates in sight for the
roads. with big crops in sight. the inn
por4ant barking interests feel that
prosperity IN growing. They are nor
promising "a boom Immediately. but
all the. elements for. a constantly in
creasing volume OF business are pres
ent These elements are SO pro-
nonileed that It II not believed the
politicians can check the upward
movement. The stock market has had
d good rise in the last few weeks and
she reaction WAS perfectly natural Its
extent IL not alarming No liquida-
tion OF importance made Its appear
ance on the decline but on the con-
rrarv. leaders OF the market We're oh
served buying freely. resumption
of the advance must he expected al
mort Immediately.
CHICAGO GRAIN