Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-05-25
WALL STREET SEES
0NLYDARK SIDE
Ignores Crop Reports and Re-
fuses to Take Cheerful
View of Outlook.
HARD TO GET MONEY
TO MEET URGENT NEEDS
Strong Railroads and Industrials
Refuse to Pay High Interest
Rates Lenders Demand.
By W. g. NICHOLAS,

NEW YORK. May 24-Wan street is
still blind to the magnificent crop pros
poets and the great movement of traffic
on the railroads. The total is only
slightly under the highest figure on rec
ord. More equipment is in use on the
carrying systems than ever before, ex-
ceptfng during brief period last winter
It is mystery how the railroads get
money or credit to keep up their equip
ment. The car building and locomotive
building companies are strained to the
limit carrying their railroad customers
for rolling stock. They are really press
ed to accommodate hard-up customers.
But this is only one Of the incidents.
Wall street refuses to see anything but
dark colors. To participate in the SUM-
shine it must go above the clouds. and
there is no way to get there as matters
now stand. The bigger the man, the
more frightened he seems to be over the
present situation and over prospects. He
feels as though he were completely en-
comprised by bushwackers and dyna-
mite throwers. In the language of the
cattle camp, they are scared plum
crazy
Professional money lenders always have
something to spare. even though they
have to get it through the back doors of
banks and trust companies, but they will
do business only at usurious rates, and
then sparingly. There are so many splits
and divisions Of these illicit profits that
among the operators. With such cOndi-
lions prevailing Wall street could not
be otherwise than stagnant, and senti-
ment without force or direction.
cut of Money Market.
Most of the strongest railroads and in
dustrials have practically drawn out of
the money market for the time being. "A
majority would like to have more capital
for purposes Of expansion and improve
ment Of plant, but for this kind Of money
borrowers will not pay exorbitantly.
They feel they can better afford to wait
than to pay the price. The needs Of not
a few conspicuous corporations are ex-
tremely urgent. and they have to obtain
accommodations regardless of the demads
of the lenders.
New Haven furnished an illustration Of
financial need when it borrowed $4,000
60 Of J. p Morgan & Co. the day after
it ordered the distribution OF that identi-
cal sum as dividends to stockholders
There has been no pretense that the
road earned the full dividend, but 1t had
to keep up credit with its stockholders in
order to prevent New England from go ng
into a panic New York Central is also
bidding high for short time money by
the millions. Other roads which have
been putting out desperate feelers nave
been unable to secure succor. For the
moment the situation could not be
worse The street is literally overcome
with a sense of fear that something may
happen against which they cannot pro-
tect themselves except by filling up their
strong boxes and keeping them locked.
Not Like Old Days.
The hitherto influential bankers and
underwriting firms no longer have the
pull with rich clients as was formerly
the case. In the good old Morgan days all
the great international banking houses
acting in cooperation with group of
powerful New York banks had only to
advise long lists of clients that they
were allotted proportionate shares of un-
derwriting Of new securities and the thing
was done. The stock announcements
went out that the transaction was a
bowling success and that the Oversub-
scription had been something astound-
ing Some Of the schemes did not pan out
and the involuntary subscribers to new
stuff lost money.
A few experiences of this kind cooled
them down and for year or more IN