Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-08-24
BY w. G.. NICHOLAS
espondence OF The Star.

good features of the play had been an
ticipated.
The bullish commotion was largely the
result Of skillful manipulation in the in
terest of the financial syndicates directly
concerned, aided and abetted by friendly
banking institutions. 1t was to the gen.
eral interests of the street to arouse q
bullish feeling among dormant traders and
the public, and thereby encourage broad
action In stocks, at the same time ena-
bling insiders to unload securities that
were getting tireSomely heavy
Distribution during the month of adj
vancing prices and the fortnight that
marked the culmination of the upward
movement was steady, and, as whole,
voluminous. The professional financiers
were relieved and numerous array Of
scattered investors assumed the owner
ship Of several hundred thousand shares
or stocks and many millions OF dollars
worth of bonds. The rich pools and
combinations behind and under the mar
ket took long breath of satisfaction
A formidable campaign had been sue
cessfully put through. A great mass Of
securities had been transferred from the
hands of banks, underwriters and trust
companies to the keeping of tens Of
thousands Of people Of small and mod
crate means The demand seems to be
about satisfied for the time being, though
quotations have as yet shown unimpor-
tant recession. Both bullish apd bearish
factions seem satisfied to let matters re-
main In status quo. for the time being.
Reasons for Quiet Conditions.
There are many reasons for the big
interests favoring a period of stock
market quiet around the current level
of quotations. One is the well de-
yeloped disposition on the part of the
mass of late buyers to sit tight and
await the normal development of
events, calm in the faith of ultimate
Improvement. Another faction holds
to the faith that a substantial reaction
is due before the resumption OF bull
movement That there should now
rule a period Of quiet waiting is natu-
raj and occasions slight Impotence on
either side.
Prices afe about midway between
June low and spring high. and rea-
sons for and against advances or de-
clines are seemingly evenly matched.
The movements that have taken place
thus far this year seem to have been
legitimate, for the most part. Wefghty
arguments and theories now tend to
the bullish position, but nobody is in a
hurry-that is, none of the important
people who have a voice in the dtrec-
ton of large affairs.
Quiet number of things might hap
pen to disturb the situation, and why
not hold off awhile longer. the con-
Seryatives ask themselves.
Only a few weeks will elapse before
Congress adjourns, with a new tariff
law on the books, and possibly q new
currency law In companionship; the. size
of the 1913 crops safely appraised;
pending wage questions settled; de-
cision reached by the interstate com
merce commission with regard to the
5 per cent freight reached. Should all
or a majority of these factors be ia
vorably decided. period OF unpre-
cedented national prosperity might
follow. mighty bull movement IN
industry and commerce and the stock
market is already held in 3ubilant an
ticipation, to q wider extent than even
the most ardent are willing at this
writing to publicly admit. The foun-
however, and the great silent force is
under the situation.
Freight Rate Issue.
Because the eastern railroad presidents
do not go about beating drums and noisi-
ly demanding from the Interstate. COM
merce commission instantaneous action
on the freight rate issue, a handful of
ill-advised gossipers are conjuring that
the commission has decided the case in
advance, and against the transportation
companies Distorted imagination and
malice never fathered greater nonsense.
The railroads and the commissioners are
proceeding in entire harmony, In the car
rying out Of prescribed and perfectly
understood program. The commission
ers asked the railroad officials to prepare
and present all possible data bearing ON
the question, the Information to be nleo
or ready for filing at speciai mee s IN IN
October next. The task as Whole Is
herculean and is monopolizing the serv-
ices of an army of the best experts that
money can hire. The actual cost Of
compilation ant arrangement OF the facts
that are earnestly desired by both rail-
road. companies and commissioners will
approximate $jOO.OOO. The first esumate
was $3.50
When the facts now being collected are
all in the public will have for the first
time clear and intelligent conception OF
railroad, it's value from every stand
point, it's mission, it's complex relations
to stockholders and the public, where
the enormous sums (aggregatng nearly
S., OOO, 100000 q Year, come from with
which to pay wages and other costs of
operation and to provide for vitality es-
sential facilities in keeping up with the
country's progress. These are a rev or
the facts that are being compiled for the
enlightenment of the railroad commits
sioners, the public and the railroad OHl-
Gals themselves.
Individually the railroad presidents can
do little toward the accumulation or the
desired information, and their principal
mission Will be TO lay before the colH-
mission the facts as collated by the ex-
perts. many of whom have specialized
lifetime ON the work. The broad cam
paign on behalf of the railroads is under
the direction Of President Willard of the
Baltimore and Ohio.
The fifty-one other eastern railroad
presidents who are in the association
are working in entire harmony with the
leader, and the united results will be en-
bodied in the most remarkable report
ever compiled in transportation history.
Anticipate Large Business.
There is a slight midsummer falling off
in the earnings of few railroads. but In
a great majority of cases the returns
from traffic are larger than during the
months of last year-which
up to then was the record breaker. Prep
arations are making on practically every
system for an unprecedentedly large bust
ness during the fall and winter months,
and although the percentage of net earn
ings will not keep pace with gross Gun
less rates are raised) the showing will
reflect degree of national prosperity be-
to