The Washington herald., 1913-11-29
TRUST CONTROL
WOULD RELIEVE
Sherman Antitrust Law the
Real Cause of the Busi-
ness Hesitation.
SECURITIES VERY QUIET
Union Pacific Leads on New York
M=rketILocaI Stocks Were
Unchanged-Gossip.
SECURITIES VERY QUIET
BY I. 4. FLEMING.

narVeStS, with each recurring year,
should not be compelled to stand still
and mark time" as the business forces
Of the United States are doing today;
as they have been doing for months past
Today We are at a stage where buying
power is limited practically to actual
necessities, for immediate requirements
only.
While waiting as all the world waits,
we are passing through a period of re-
adjustment, and II is being fast brought
to actual accomplishment.
More forward than any other nation.
the United States has adjusted its
credits very largely. and it is but wait
ing for returning confidence to start on
the broad highway of recovery.
There are a number Of reasons that
make for hesitancy. The plight of the
railroads, with expenses increasing fas-
ter than earnings, is a fruitful source Of
conservatism. Railroads no longer con
troll their own rates, while organized Ia
Dor is gradually Tightening its hold of
wage making, until demands mean con-
cessions and demands will be repeated
ad lib.
Frequent increases in wages. shorten
ing of hours of labor. and State and
Federal control have forced the railroads
10 seek of the Interstate Commerce Com
mission per cent horizontal advance.
Indications favor a compromise, else the
drift to government ownership and the
upbuilding of great political machine,
with incident labor struggles will in
crease TO a reality
No country can be prosperous where its
railroads are having trouble in making
beth ends meet If they are employing
equipment TO advantage at paying rates,
it means prosperity; II not it is not as
I should be, for there is ample freight
md passenger traffic perhaps halting
secause confidence halts.
Railroads Have Sinned.
There is no question but what railroad
officials have brought this state of affairs
on themselves. BY rebates, special privi-
Ieges, and other ills of the period OF
the public be damned they have
iOrced control of their affairs largely into
State and government commissions.
Conservative and honest managers OF
today are forced TO work under burdens
inflicted by the i'll advised actions OF their
predecessors.
Railroads are also facing crisis in the
piling up of millions, yes billions of Sc
zurities, ahead of their stocks. These
are rapidly maturing, apparently only to
1e refunded, thus stav1ng on the evil
lay.
Public opinion is turning toward the
railroads and. business men generally,
even shippers would not object to the
horizontal advance in freight rates asked.
From overextension of credit this
country is fast recovering.
There is a temporary stringency in
money, owing to the heavy Withdrawals
from New York for Canada, this week s
movement indicating a loss Of S20,OOo, 900
in cash. Pending the December and
January disbursements money Is likely
to remain close, but thereafter it should
ease on. Call loans yesterday rose in
New York from 3-4 to 10 per cent and
closed at per cent.
Trust Regulation Needed.
Probably more than any other one
cause this halting in the business world,
so far as the United States is con-
cerned. is directly chargeahle TO the fear
that the Sherman antitrust law has
caused to managers of great corporations
They fear action, they know not just
what The policy of the administration,
outlined on every other important sub
ject, is still in this important particular
In the last tweive years, while yet the
Sherman law Was on the statutes and its
author in his grave, the great centralfza-
ton of capital ia productive capacities,
has come to be the manufacturing way.
1t is a problem whether the Sherman
law has been of any use. Integrals of
bacco companies. as segregated by the
law, are worth in the aggregate much
more than the value of Standard Oil and
Tobacco shares at the time of the dissolu-
ton As to the matter of prices for the
products of the busted trusts, they are
much higher than ever and the corpora
tions control larger percentage of trade
than the original trusts.
Trust regulation is needed. No matter
how drastic. Great relief would be felt
in the business world if regulation, con-
troll by the government, should be an
nexed by the administration as its policy.
Trust busting brings US nowhere; regula-
ton would cover every evil
A return to the olden times of individ-
uaI effort and individual production
does not seem practicable.
Wall street Quiet.
Yesterdays New York stock market
was irregular, decidedly dull and with an
easier closing
At the opening the trend was toward
higher values and the leaders displayed
the best strength. Advancing rates in
call money, forced by the National City
Bank to per cent, before the close, the
failure of large realty corporation with
heavy liabilities, and the apparent weak
ness in the copper stocks turned the tide,
although a few leaders presented firm
appearance right up to the close of the
session.
Union Pacific was clearly the leader
and il gained for the day 3-4 of point,
the best advance madet in any of the
prominent stocks. Reading stopped in
Wednesdays closing notch. Canadian
Pacific gained 1-2 anc was firm.
Steel was in fairly good request, but
the late pressure turned fractional
-ain to a 3-S decline Reports of de-
creasing production, falling off in orders
and cutting in prices caused the decline
from 56 IA to IS S-S.
Sales for the day were but 5000 shares,
indicating plainly the neglect, the small
buying power and the self-content of the
shorts over their position. The techni-
cal position of the market is not as good
as a week ago, the advances on the
earlier days of the week having forced
much covering.
Canadian Gold Movement.
The draft on our gold supply by Cana
da is reachin;- proportions where the
losses are material. Over $13,O00OO0 have
been taken for export 20 Canada and
ft,is usually comes direct from New
york A POOR bank statement is certain
for the weeks end.
c,opper shares were of l-2a3-4 all
Ground. Indeed, all minor shares that
appeared in the days trading were on