New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-05-22
Railroads Come to Front,
Heavily Purchased as
Peace Stocks.
NEW LEADERS SOUGHT
TO BRING BACK PUBLIC
Million Share Day Shows Hope
German Crisis No Longer
Menaces Market.


the depression that had characterized
the transportation industry even be-
fore the war 70 the greatest prosperity
4 il had ever known had hitherto received
/ little market reflection. Fear of for
/ eign selling, doubt as TO the attitude OF
regulating bodies and the more at
/ tractive speculative possibilities OF the
industrials whose operations received
less publicity had made the railroad
stocks laggards in the markets. Nor
| folk & Westerns extra dividend pointed
cut that the carriers might be made
more attractive, and last week, under
lead Of Reading, which has for years
contained the mystery that appeals TO
speculative Imagination, the rails were
/ heavily purchased.
Trading interest was diverted from
the recent favorites in the munition
group and dealings in the railroads
were on q scale that recalled big mar
kets Of long before the war. SO far as
London liquidation was concerned, il
was not apparent in sufficient volume
10 interfere with the upward move
/ ment. Whether this meant that the
supply Of our stocks turned over to the
[ British government was running low
or that pressure was withheld so as to
make better opportunities on which 10
sell later. there was considerable diff
ference Of opinion
Since the war stocks fattened out at
tcmpts TO get trading in stocks going
again with a big public following have
been unsuccessful because Of the diff
Guilty over the German use Of sub
marines. II may be that this weight
has now been removed and that il will
be possible to bring to the market
again some portion Of the surplus
profits accumulated all over the coun-
try. When the break came last October
il was not the outsiders who held most
Of the stock bought at high prices, and
so it may be expected that efforts will
be made by powerful interests to en-
courage trading that will enable them
10 distribute their holdings.
Stocks Resist Pressure.
For a while toward the start Of the
week after securities had stopped
their advance with one days further
rise in industrials, the professional
speculative element worked to send
prices lower, but met little success In
this direction. The market had re-
Gently been put TO hard test in the
scare over the German crisis. IL came
out Of this well, and with more weak
holders eliminated appeared in pretty
sound condition. Toward the latter
part Of the week the process of at
tempting 10 separate war stocks from
those that should do well in case Of
peace was taken up again. Railroads
were selected as the peace stocks. with
few standard industrials that had
not done much in the war order boom
Of last year, and on Friday a million
and a quarter shares changed hands.
Sooner or later we shall see divid-
ing line drawn between issues that have
benefited temporarily through wars
demands and those whose prosperity
is TO be on a more permanent basis.
Since we know so little. however, Of
when peace is 20 come and Of how Eu-
rope will start setting its affairs in
order again, discounting this newt
able change is not simple affair.
From time 10 time peace rumors,
which must be expected to disturb p
market adjusted TO war, cause more or
less uncasincss. As new war contracts
for finished material fall off and the
business they supplied is replaced by
filling ordinary needs our ability is
increased TO arrange our affairs when
peace finally does come So large a
proportion Of our present prosperity
depends upon the sale Of surplus prod
ucts abroad that the new alignment
that must come when Europe ceases to
spend lavishly for purposes Of warfare
and begins TO straighten out its affairs
must mean some disturbance.
Trade After the War.
How the currents OF trade will run
when war is over few are agreed. The
Allied powers have been holding con-
ferences with a view to isolating Ger
many after the war. II is, of course,
far from certain that business meth
/ DDS can be efTectually controlled in
/ such fashion, but it appears that some
/ effort along these lines will be made.
/ Great Britain adopted her free trade
/ policy because II was AZ that time TO
/ her interest TO DO 50. Should IL seem
/ advantageous TO recede from the posi-
/ tion she has so long maintained no
/ theoretical objections may be expected
TO prevent her.
Just how we'll Germany will be pre-
pared to fight for her lost share in world
trade is uncertain. Since so great pro
portion Of her population has been ac-
lively engaged i'm war and in supplying
the needs of her armies, il is TO be
doubted if any great mass of goods has
been accumulated within her borders
10 be rushed out into the channels of
foreign trade when peace comes. Yet
her facilities for production remain,
and il may be that the capacity for or
ganizatiOn that has stood her so well in
warfare may enable her people to turn
quickly TO the pursuits of peace.
At any rate, we may be sure that TO
maintain an advantageous position in
world commerce will require our best
efforts i'm spite Of the additional
strength and prestige we have been
gaining while the greater part Of the
rest Of the civilized world has been
wasting It's substance. When the war
broke out we we're Just beginning TO
feel at home the effects in increased
foreign competition of an experimental
tariff law Business men consider that
10 will be necessary 10 direct tariff leg
islation and commercial treaties with
the greatest degree of intelligence If
we are TO hold our own in the CONNER
cial struggle that seems inevitable.
High prices have added TO the cost Of
production in the last two years in this
country, but because of their immense
imitation this is even more true of the
warning powers abroad. Should the
belligerents be slow TO contract the
4 har