The Bridgeport evening farmer., 1917-12-04
WATSON'S WEEKLY
MARKET LETTER

--1tlH1Hk QtSCOuut0U NY 'SGNSI0 0O-
tlines most of the unfavorable fnan-
cial factors in sight, the market for
Securities, following natural recov-
4ry from extreme depression, has en-
Etered q trading condition, in which
the active investor finds the best re-
suits obtained through purchasing
sound issues during reactions with
the Intention of taking profits on
strong spots.
Financing requirements and prep
aration for the Liberty Loan install
xnent due December Is, as well as the
end-of-year disbursements expected
to total near $500, 100000, are making
for q money position of closeness and
suggests a limited amount of funds
for speculation; and this outlook re-
stricts bullish activities largely to
speeialties instead of any broad up
ward movement meantime.
The worst of the pressing liquida-
ton has apparently been completed.
what may come in the near future
should consist chiefly OF securities
better protected than those urgently
offered but which current readjust-
ment direct must he sold sooner or
later There are no indications at
this time that such liquidation is
large. Briefly, the real weakness OF
I the market has been removed, and
me technical position is much strong
er than for many months.
Earning power is receiving more
consideration among investors whose
tonhdence had been undermined be-
t<,4e 1fa
prices, assisted by enemy manipula-
ton which has been checked by the
commendable action of the Stock Elk
change authorities in restricting short
selling. Southern Pacific is a con-
splcuous example of earning power.
Its October net earnings increased
s. f62. 600 over last year, and since
January / the net has gained IS, 293, 900
over the same period Of 1914 re-
rnarkabfe showing in these times when
the carriers are struggling against
gross discrimination.
Because Of the antagonistie attitude
oE the Interstate Commerce Commits
sion Investors are transferring their
holding of railroad securities at great
sacrifice to the more attractive indus
TRIAL corporations, whose operations
are unlimited, practically, except so
far as their volume of output Is re-
stricted by inadequate transportation
Facilities throughout the country. U.
s. Steel, Republic Iron & Steel, Lack
awanna Steel. American Smelling.
American Car & Foundry and Amer
Jean locomotive are understood to be
Substituted for many railroad secur-
ties
Further uncertainty has been
thn0wn about the railroad situation
Nv thd new pooling experiment, gov
eminent ownership agitation, argu-
Enents for and against congressional
aetion in the matter of credit, conges-
ton ct terminals, and. the growing
1Inpresston that the transportation
facilities of the nation are not only
retaFding It's development but prevent
eiiiesent movement OF war supplies.
The real remedy, and the most simple
one, Is high enough freight rates that
win provide sufficient revenues and
attract new investment capital.
The proper tax for the support Of
the railroads Is through adequate
relght rates paid by those who use
tasm and in proportion to such use
not By q tax on the whole people to
enable the government to become the
bankers OF the railroads" says Pres
ldsnt Warheld Of the National Assoc
CATION Of Owners of Railroad Securi-
ties. If you will weigh carefully the
here necessities OF the situation in
this crisis In the history Of our ooun-
Z try and in the affairs of its greatest
enterpFige-the railroads-we are con-
aiaent of the relief to which we are
Justly entitled. The measure OF such
relief we leave to your Judgment with
The request that 1t shall be general
and SUFFICIENT, and apply to all rail-
road territory." Mr. Warneld was ad-
iresstng the /. 8. G. c.
Prominent railroad men hold that
the only way real results can be had
n this railway problem Is through
pressure from the people on WASH
inBton, How 10 get that pressure to
be strong enough Is question VIII
# be necessary to await a disaster to
aWaaken the people-such as famine
conditions through failure to deliver
food at big cities by reason of lack
Of terminal facilities? In this coun-
Try Of ours big things are up to the
people" Their leaders will not act
alone.
Let US hope" says President Rea
Of the Pennsylvania railroad, that
this war will bring the public at large
~ true appreciation of the worth
the railroads and their necessity
not only for a successful prosecution
q the war but also for our general
welfare; and that a reasonably con-
<tEuctiye program, with rates thai
win produce a remnuerative return
and insure progress and adequate IA
cilities in New York harbor and else
where, will fbe evolved by the active