New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-11
Wednesday, October 10, 1917

W COnfNUUU, OttOOCf ANs A'Af
The stock market appears 10 be
in a state of generalization. Though
nothing like a panic is in evidence,
the downward movement goes stead
lily on, and many securities have
worked down to price levels which
are comparable with those prevailing
during the crises of 1907 and 1914.
The latest session on the Stock Ex-
change was marked by the most Sc
we're decline which has occurred in
a number of weeks, and yet there
we're no new developments of suffi-
cient Importance to induce such
slump as took place. Apparently, the
movement, as commonly happens, is
gaining momentum as it proceeds.
Supporting orders are scarce, and
each time stock breaks to new
low level fresh selling is precipi-
tated, either for account Of specu-
lators whose margins have been ex-
hausted or for investors who have
chung tenaciously TO their securities
throughout many trying periods, but
who at last are frightened into SELL
irg. That q considerable portion of
the liquidation comes from share
holders Of the latter class is the con-
viction of many well informed Wall
Street persons. They point to the
fact that large and small blocks Of
stock are coming into the market
every day which have not been trans
ferred for ten or twenty years, or
even more. II is unfortunate that
this condition should obtain during
the Liberty Loan campaign, for the
uncertainty which prevails in the
financial district and among security
holders generally undoubtedly oper-
ates TO the disadvantage of the fota-
ton. Under the circumstances IL
would not be surprising IL the large
financial interests should come 20 the
support of the market before long.
When the Adamson law, ostensibly
Shortening the hours of labor for
organized railroad workers, but real
" granting them a large increase
in wages, went into effect, the first
of the year. and the danger Of great
national calamity was past, the
whole country breathed a sigh of
relief. The railroad wage problem
seemed to have been solved for
long time TO come. Organized rail
road employees, having received adj
vance after advance, until on the
average they were about the highest
paid workers in the country, would
rest content, it was felt. Now, only
nine months after the new schedules
became effective, it appears that the
brotherhoods are preparing to for
ulate new demands for higher
pay, this time for the men in
passenger service. If they vote
TO do so at the meeting which
is reported TO be scheduled for
next week the whole problem will
be opened again, and to the uncer-
tainties which the financial district
already faces will be added another
OF grave import. Coming at time
when sentiment is already unduly
depressed, and when railroad securi-
ties are undergoing liquidation in a
manner which suggests that intrin-
sic values are being dsregarded, a
fresh wage controversy could hardly
fell to have a seriously depressing
effect upon values, and possibly a
demoralizing influence on business
generally, as was the case last year
One thing is plain, however. The
government cannot afford to force
the carriers into bankruptcy, and if
the brotherhoods should win, as they
always have won in the past, the in
creased cost of operation will have
tC be Offset by an advance in freight
rates large enough to yield net reve-
rues at least as great as the addi-
tions to the payroll. Bearing that
in mind, railroad security holders
should not be frightened by the pos
sibility of another wage dispute.