Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-10
Money Market Easier.

The money market Is working easier
and as the financial tone softens bullist
sentiment In stocks becomes a more tan.
gible proposition. With call money down
21a per cent and bankers throughout the
east and west agreeing that there will be
capital In abundance for crop moving
purposes without government aid the
speculative and investment spirit bright
ems. As before stated, however, there is
nothing whirlwindy in the prospect. The
open-handed willingness Of the Secretary
Of the Treasury to give relief to any
crop-moving stnngency was cone Of the
moving factors Of the development of 9
bullish tone, not only in securities, but
in general business affairs.
The unprecedented are beginning to be-
lieve that United States Steel has enter
ed upon permanent program of saving
large percentage Of net earnings hither-
to spent on improvement and expansion
Of plant. For years 1t was the habit to
jeer at steel for its alleged grotesque
overcapitalization and extravaganza, but
the records show that the company 8
expenditures on plant came from current
income almost exclusively: Hundreds Of
millions of dollars that might have been
charged to capital account or gone into
dividends went into new mills, coal and
iron mines, costly lake fleet, railroad
mileage and thousand and one forms of
upbuilding. Immense capital was pro-
vided out Of earnings for the develop
ment Of a foreign trade. More than half
a billion dollars from clean earnings was
reinvested in the property, which is now
estimated to be intrinsically worth 80
over and above mortgage Indebtedness.
The corporation has a larger number
Of stockholders than any other American
company, and considerably in excess OF
Pennsylvania railroad. with its $4,000
ship is the loyal and tenacious friendship
for the management and what 1t repre-
sents. The argument of the later day
bulls in steel is that its growth will never
cease and that eventually Charles
Schwab's prophecy of a net income of
$3.50, 100000 will be realized for distribu-
ton to security holders. The present in
terest and dividend obligation Is over
500, 100000 annually.
1t is said that even Mr.. Carnegie, by
the way, has recovered entirely from his
disappointment in not getting back his
mills under foreclosure-plus lot of as
sets accumulated after he had sold out.
Uncertainty Over Paciflcs.
The uncertainties surrounding the
Union Pacific and Southern Pacific ad-
justment plans continue to afford an ex-
cuse for endless gossip and are the cause
Of daily price fluctuations of q point or
more. The so-called news columns on the
financial pages of the newspapers are
filled with the imaginings of the news
vendors. The more traders read the wise
calculations of the scribes and specialists
the less they know. No two accounts
agree, and speculation on the complex
problem is idlest waste of time. In the
course Of human events the matter will
be settled, the equities adjusted and the
two systems will continue to handle
freight and passengers as though moth
ing had happened. Judge Lovett IL the
principal personality. and on MS return
| az III no n ha a hallr
and pointless as much OF the talk is on
this theme it really constitutes quite a
factor at times in the making Of minor
fluctuations and the supplying OF financial
copy.
In well considered statement Presi-
dent Willard of the Baltimore and Ohio
and chairman of the freight rate commit
tee Of railroad presidents, has set at rest
disturbing and groundless reports OF fric-
ton between the railroad high officials
and the commission. Mr.. Willard makes
1t plain that relations are cordial and
that every move taken by the railroads
are with the acquiescence and approval
Of the commissioners The gossip was
annoying for q time, but with the publ
cation Of the Willard explanation quiet
was restored in the public mind.
The avidity with which New Ravens
quick loan Of $1O,OOOOOO was put through
was something of a revelation. The rate
was high. of course-about per cent-but
the harassed railroad had to have the
money, and to get it pledged attractive
inducements The note issue was over
subscribed twice over. New England
holders of New Haven securities took the
bulk of the $4,000. 900. and seemed greedy
for more There is plenty of money in
the east, and it is loosening up.
Railways Lack Equipment.
Railroads do not like to make poor
mouth, for fear of being suspected OF
trying to deceive the interstate commerce
commission. but the cold fact is that
few systems are fixed as they ought to
be with regard to equipment. They