Daily capital journal. (Salem, Oregon) 1903-1919, 1916-12-01

New York, Dec. Increased pres
sure of securities seems 10 be develop
ing in Stock Exchange circles. There
still is remarkable power of absorp-
tion. But the selling seemingly is by
stronger interests than the buying and
the new position does not suggest the
same degree of strength and confidence
as has so recently been current.
This reactionary trend is not alto
gether surprising. 1t may in apprcci-
able measure be regarded a natural re-
sponse TO news developments that are
calculated TO exercise more or less
restraining influence on Stock Ex-
change operations. For instance, the
decision of the managers of the large
transportation companies of the coun-
try to contest the enforcement of the
Adamson Law--the so,called Eight
Hour Railroad Labor Law-on the
ground that the measure contravenes
constitutional rights, opens up an i'm
portant question. Efforts are being
made as result of the cooperation of
the Government TO secure a decision on
this point by the court of last resort
before January |, which is the date set
for the measure to go into practical
operation. In order to expedite the
decision the United States Circuit
Court at Kansas City has ruled against
the constitutionality of the act, ad-
mittedlv ignoring the merits OF the
case. This permits an appeal at once
10 be taken in the interest of a prompt
final decision. The Adamson Law was
enacted under threat of a nationwide
strike that promised to tie up trade
and industry and entail widespread
suffering, loss and inconvenience.
Labor still seems to be maintaining the
same determined attitude TO enforce
by this means higher wages under
threat of shutting down transporta-
ton facilities. Presumably there will
be no stoppage. of work if the Supreme
Court rules that the law as enacted
does not violate constitutional guaran,
tees. But. on the other hand, should
the court sustain what seems to he the
unanimous view of eminent railroad
legal advisers, namely, that the law is
unc Institutional, then, if present state
ments of leaders are to be accepted
seriously, no time will be lost in bring
ing about serious condition in rail
road operation. This is an unfortunate
condition of affairs.
Would Labor Defy Courts?
It certainly would be an unpopular
position for labor to assume II 1t should
openlv defv the courts. The railroads
are. il is true, enjoying period OF
prosperity. The owners Of securities
Of the roads as well as the employees
are entitled TO participate in TINS I'M
movement. There should moreover be
proper regard for the credit of the
TRANSFORMATION companies which need
large amounts of new capital for eN'
tensions and improvements IN order
that they may conduct adequately then
functions rs common carriers. rms
new capital cannot be readily secured
unless the railroads themselves can
| show they are conducting piotltaDie
business .and that the new securities
they propose TO offer TO investors are
sound Any attack such as rs no"
threatened by labor would be diseour
aging to purchasers of the older ciasse'
of railroad securities, not to mention
investors in the newer ones. Untll thl'
matter finally is cleared up 1t is APT
| 10 continue restraining and unsettlini
influence in Stock Exchange circles
The Weeks Offerings
Unusually heavy foreign demands
that from day to day are appearing fol
new capital seem to be finaly resulting
in an appreciably firmer money situa
tion. This weeks offerings have in
cluded $50,OOO,O0O Russian Govern
ment loan, a s5,OOO.OOO loan to chin'
and three loans of S20,0OOOOO eacb tc
be divided equally among the three
French cities Bordeaux, Marseilles an'
LYONS. There are Indications, too, that
domestic interests also are making pro
visions for new capital, taking ad
! vantage Of the abundance Of money
/ and credit that is 50 clearly following
as q result Of the war. There scem'
reason to believe however that every
effort win be made on behalf Of th'
| British Treasury to prevent a substan