The Bridgeport evening farmer., 1917-10-10
WATSON'S WEEKLY
MARKET LETTER

the situation in the railroad world
and gave some consideration to the
unfavorable position in which the
carriers are being placed by circum-
stances over which they have no con-
troll? The Pennsylvania Railroad OPP
Grating income for August decreased
$141,760, and for the eight months
ending with that month the net taxes
decreased $10,611.5s8. The. August
earnings OF the New York Central
system show a decrease of $1,98,617
in the net earnings after deduction of
taxes amounted to the large figure
OF $16,653,29s. Other roads are re-
cording declines in earnings. The
government could give them some
relief--and properly-by granting in
creased freight rates, to which they
are entitled. This would enable the
carriers to pay the increase in wages
which was forced upon them by con-
gress.
The railroads are handling an i'm
mense traffic" says the National City
Bank of Chicago, land it is only
question of time when they will be
forced to give out immense orders for
supplies and equipment so as to care
for the large business which the
country is offering. In time of war
AIS well as in a season of great trade
activity it is of the highest import
ance that the roads should be proper
IN equipped to render the best pos
sfble service to the government. Need
Tor these greater facilities has been
emphasized by the complications
growing out of the war and the eff
fort of all classes to make American
participation in the conflict as effec-
tive as possible. 1t is ridiculous to
attempt to finance the roads on the
scale of nineteenth century require
ments and expect them to handle
twentiet cantury business on rush
basis. The American people must
treat their railroads more literally
or make fewer demands upon them"
It is to be hoped that at the rehearing
OF the application of the Eastern
roads expected the latter part of this
month, the Interstate Commerce
/. commission can be persuaded to ex-
tend the 10 per cent. advance origin
ally asked for. 1t is certain that the
general B1isaness of the country will
be ADVERSELY affected If railroad cred
Is is allowed to decline much fur
sher.
The stock market again became
unsettled because of lack of positive
buying power. and has entered a
movement which professional opera
tors term 1.-The secondary declinepf'-
meaning the reaction which takes
place from the top of a large recovery
Following a severe depression such as
was recently experienced. Unsettle-
ment OF investment sentiment is not
to be wondered at in view of the re-
4 h1ctance of the powers-that-be to ex-
tend definite support at a time when
3 favorable sentiment would seem to
be desirable in connection with the
flotation of the greatest loan in the
y history Of the country. Again. we
must not forget that this nation is
not only now acting as banker for the
entire civilized world outside of the
enemy, but that the United States is
being called upon to furnish probably
: the major portion of the war sup
4 plies Of the Allies. The enlisting of
Z the physical, financial and moral sup
J port OF America in the war is GER
/ tainly an important factor. But yal-
ues are here. They are going to be
annihilated, as some of the bears
would have us believe. And it is not
TO be overlooked that the entrance of
the United States into the war and
4 the pooling of all resources by the
Z Allies with US mean that not only is
ultimate victory assured, but that re-
eovery after the conflict will be
speedy and complete.
Financial writer's are urging that
security investors be represented in
4 the washington councils, as are 9TH
er lines or business. Banking inter-
ests are quoted as saying that they
tdo not expect any real furry in the
money market, but that firm rates
are to be expected for the present.
tThe banking pool recently formed is
understood to have good control. De-
Elay by the government in annuoncing
n details for the metal trades regarding
price-fixing measures continues to
mike for a hand-to-mouth buying in
various directions. -. Ogden Armour
An quoted as expecting that the war
will be over by next Spring. Large
orders for Russian and Belgian sol
diers shoes are reported to be pend
n Ing, involving perhaps $4,000, 00G
& worth of business. It is beginning to
be realized more and more that price
fixing now is going to forestau radi-
cal readjustments to peace, and or
that account 1t is nox to be regarded
s Dear1sh FOR the pull on good Securf-
ties A-farge short interest is report
"a to Notwithstanding I'm the coal
stocks, and it may decide to retire or
indications of an upward revision OF
soft coal fixed prices. Conservative
eliminates are giving the u. s. Stee,
concern earnings for 1917 at between
$50 and s35 as hare. It should not
be overlooked that the present prices
f0r Investment securities arc var and
NOT papies prices, and that the i'm
nense inf1atipn in.s progress caused
Ny the great stimulation of all lines
the world over must make for high
lisecurity prices later on when current
Establishments to a war basis first and
peace basis afterward, shall have
been completed financially.
GAS VICTIMS RECOVERING