Evening star., 1916-08-27


that its exit, far as the stock eN-
change is concerned. Will be after the
manner of the much desired bull.
Thus, on the hottest day of the sum
mer, August %, the stock exchahge
boiled and bubbled under a turnover or
400 900 shares, establishing new rec
ords for leading industrials, and CIV
ing the railroad shares the most promi-
nent position they have occupied Ior
months.
Steel Common Favorite.
United States Steel common, purely
on its merits of increasing earnings
and enlarged capacities, has been the
most ardently sought of the Industrial
group. and a comparison of its mar
ket value one or two months ago with
that of today's closing is the best evil
dence of its, return to popular favor.
In the early part of 1915, under ad-
verse conditions in the steel trade. the
stock of our premier steel corporation
sold at S3S share in the OUTSIDE mar
ket only to advance to 81 72 IN the
same year In May, 1904, 4.9oo shalss g.
of this stock changed hands at 4S 70
per share. This weeks price OF W on
enormous dealings. compares WIN
previous record of 941s. established IN
1909.
poratton is now earning five times It's
dividend and that If the present pros
porous conditions in the steel lraue
continue for another year or more, the
corporation could invest its surplus in
good securities and continue its regular
dividends Irrespective of its future
profits In steel manufacturing.
Railroad Group Strong.
The railroad group of stocks have
as a whole been stronger than at any
time since the demands of the union
men were presented to the manage
ments. Wall street and the investing
public have always believed that
calamity such as would be involved in
the complete tie-up of the transporta-
ton facilities of this country is un-
thinkable, and any indication that the
differences between the executive and
their employees were being smoothed
out was the signal for renewed buying
of the railroad shares. Reading, Union
Pacific and New York Central have been
the most conspicuous issues in this
division of the market.
At present there are railroad COM
missioners in all the states whose juris
diction clashes or conflicts more or less
with that of the interstate commerce
railroads have endeavored to escape
from this double supervision and to Sc
cure the abolition of state supervision
of every sort and kind.
An exhaustive inquiry into the entire
transportation problem of the country
is soon to be commenced by the New
lands congressional committee, before
which the various trunk lines have pre-
sented a proposal for restricting rail-
road supervision to federal authority.
Congress Enlarges Field.
AS time goes on one large field of
Jurisdiction after another has been
evitable, as the growth of the country
and the development of interstate com
merce has led to an increasing CEN
tralization of governmental authority.
Before the civil war Congress exercised
less power than was confessedly vested
in it by the federal Constitution
AS an example of this tendency it
may be remarked that Congress was
authorized to enact bankruptcy laws,
but this power was not exercised until
1857. The expected enactment of the
bill Of lading law is another example Of
the same tendency.
At first these new federal powers are
shared with the states. but later upon
the principle of convenience and neces-
stty, Congress assumes exclusive con-
troll in the new field. In this way the
federal Constitution is changed radi-
cally without any amendment. The text
of this venerable document remains the
same as IN 1888. but the American
system of government has been revo-
lutionized.
Country VIII Approve.
In tho near future the states will be
deprived altogether Of their power to
regulate railroads because Congress
will take to itself this wide area of
Jurisdiction This action will be &C
cepted by the whole country because
the time has come when there must be
effective and uniform railroad regula-
tion. and effective and uniform regula-
tion is impossible unless all power
within this range OF jurisdiction be
exercised by Congress-
If there Is anything which It II neoes-
sary to do to promote the commercial
well being Of the country. tho doing Of
that thing is constitutional. Necessity
knows nc law. When the business
world is threatened with calamity 1t
Is always constitutional for Congress to
avert that calamity by exercising a
new power. w. 8. COUSINS.