Daily capital journal. (Salem, Oregon) 1903-1919, 1915-11-03
WAR GROUP STOCKS
NO LONGER DOMINATE

New York, Oct. 30.-The dominating
jnfluence Of the war group in stock
market operations has of late been on
the wane. This may be accounted for in
various ways. War profits seem TO have
been sufficiently discounted for the
time being. Liquidation was to be ex.
pected after such II bosterous rise. and
what was more important, n very de-
cided opposition developed against rcck
loss operations in some OF the special
tics, which if not restrained threatened
TO cndanger the whole market and ar
rest more orderly and substantial ad.
vance The war news also had an UNI
settling influence; there are serious
dissensions in both the French and
British cabinets; the allies have thus
far failed ut the DardancllcS, and rum
ors were current that one side was seek.
ing peace, while the other side would
not even consider such proposals. Be
tween the two reports there was wide
gap of uncertainty which influenced
movements of the war stocks.
A further reason for lessened inter
est in the speciulties was that the rail
roads and better class of industrials
now offer safer opportunities for eth
cr investment or speculation. The rail
road outlook is particularly cncourag-
ing, more so than for many months, if
not years. 1t is considerably over n
year since the eastern roads began to
receive their five per cent advance. Be
cause of poor traffic the financial re-
suits of this advance did not appear;
81 A J,f al;
have been vastly worse without it,
Meanwhile stringent economies were
put into effect, and most of the roads
managed to make Il very fair showing,
considering adverse influences. Home
conditions have certainly changed,
There is no longer scarcity of traffic;
on the contrary, there is more probabil-
ity of a scarcity Of TRANSFORMATION. The
biggest harvest on record is waiting to
be handled, assuming ample local trHf-
fic for the railroads, which will be
further stimulated by prosperity of the
farmers and Il consequent activity of
business in those sections. a larger por-
ton of this harvest than usual will be
brought to the seabolrd for export, es-
pecially as there is no early prospect of
the Dardanelles. Added to the rush of
grain eastward and merchandise west
ward will be enormous shipments OF
ammunitions which are now running in
full volume, fulfilling early orders
Henceforward, these shipments will be
much heavier than at any time since
the war, thus creating large increase
in freight for eastern railroads. The
earnings of the latter for the next few
months will show big gains both gross
aud net. transportation facilities a
this port are already seriously over
taxed and freight congestion is becom
ing more severe daily. The same il
true only in less degree at the west
where the grain movement is already il
full swing. The rush in the steel trad,
outside of war orders is also adding t
the tax upon railroad facilities. SOM
of the transcoutinentOl lines will ben
eft by temporary closing Of the P0na
ma canal as well as by improvement
in the Mexican situation. 1t is thus Il
certain as things mundane can be tha
the railroads, especially the easter
trunk lines, are already entering neI
period Of prosperity. This will enabl
them to make longdeferred improve
ments, and to purchase needed addition
to rolling stock; at the same time insul
ing if not increasing present dividen
rates. For roads which have been er
during unusual stress, or going throug
the pangs of reorganization, the relic
will he especially grateful, and sue
shares are already showing exceptions
buoyancy,
Tn the industrial shares-wur stock
cxcepted-the well established concern
have exhibited good resisting quulitie