Evening star., 1914-04-19
MARKET CONTINUES
DULL AND NERVOUS
Railway Rate Decision Key to
the Stock Situation in
the Street.
WEEKS TRADING ALMOST
ENTIRELY PROFESSIONAL
Sale of New York City $65, 5,OOO, 900
Bond Issue Brings Municipal
Securities in Limelight.
BY W. s. COUSINS.
Special Correspondence of The Star.

Special Correspondence Of The Star.
NEW YORK, April 1S. 1914.
Dullness still prevails in Wall street.
The stock market Is still engulfed
| in that peculiar form of pessimism
which fails to interpret any infiu-
| ence in a favorable light Trading Is
almost entirely professional, and prices
have nervously rebounded within mar
| row limits. The street" is eagerly
awaiting any information that would in
| dicate the probable decision of the inter-
state commerce commission in the mat
ter of increased freight rates for the
eastern railroad lines.
| The stock market has been counting
SO freely upon the increase in railroad
| rates in the near future that much dis
appointment was felt when it was an
nounced Monday that the interstate COM
merce commission would not begin TO
hear the oral arguments in the case un-
| til April 27, and that even then there is
no guaranty of a speedy termination of
| the uncertainty that now surrounds the
whole case. Washington advices state
| that the commission will divide Itself
into two main divisions: Have the rail-
roads succeeded in proving that they
need additional revenue; and. If so. how
much do they need, and can 1t be had
without advancing rates? Some of the
collateral questions that have been rais-
bly, will not be decided by the commits
sion until after an opinion has been
given on the main point
In conservative quarters the bellef Is
expressed that should an advance occur
in the market, advantage would be taken
of 1t by demagogues in Congress, and
elsewhere, to argue that the whole OBJ
ject and purpose of the movement for
an increase of railroad rates were to
stimulate speculative activity, and afford
Wall street an opportunity to sell stocks
to the public at a high level OF prices
1t might be very unfortunate if such
contention We're strongly urged at this
time, and, therefore. large interests are
determined that there shall be no pre-
text for it.
Study of Bond Market.
While uncertainty and distrust are
more or less in evidence in the stock
market. and in the general business
situation. conditions have been clearly
moving in favor of an improved bond
market. This is particularly true Of the
municipal market which has in many
instances improved at the expense of
the industrial and railroad issues. Dur
ing the next six weeks the investment
demand will be compelled to stand the
test of a large amount of new issues,
| though. as some of these are intended
for refunding purposes, they Will not
affect the total debt margin.
The New York city SiXty-five-million-
dollar issue Wednesday of this week
while in private banking circles it is
announced that the seventy dol
lar observation-disclosures Observation-Disclosures
which the house of Morgan is handling
for the New York Central railway will
find ready acceptance among private in
vestors-that in fact almost one-third
of the issue has already been absorbed.
1t is therefore accepted as expert judg
ment that If the railroad bond market
stands the test of new issues as well as
the municipal has, nothing more can
be desired The New York city issue
this week so far from injuring the mar
ket. has not prevented another rise.
While the fact that most of the new
issues which are now foreseen will mere
ly replace outstanding obligations makes
1t easier for the market to care for the
new securities. it would be much more
satisfactory. having regard to the situa-
ton as whole. If a much larger proper
represented the raising of additional cap
ital for investment in corporate enter
prise. That would give stimulus to trade
which is altogether lacking in loans
which merely replace other loans, the
proceeds of which have already been
spent.
Railway Bond Prices Decreasing.
Taking a survey of the railroad bond
| market, as indicated by the course of the
| twenty-five representative tstatsticaD is
sues, we find that the market price has
| been steadily declining, and that il
reached it's lowest point in June of last
year, following which 1t enjoyed tenn
porary rise, followed by another decline
in the last month. Generally speaking,