The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-08-14
RAILROADS ARE STRONG
IN STOCK MARKET

New York. Aug. 13-Railroads were
strong again today in Wall street and
the fact that they could advance on
two consecutive days cheered traders
nightly They reacted slightly in the
afternoon as did all other stocks on
profit taking. The market as a whole
displayed a gooi tone although It did
not respond as much as some bankers
thought II should to the war news
Bankers are waking up to the inlpor-
lance of the news from Russia Which
many of them think is more important
than that In France. Cotton was ir-
regular breaking and recov erinR
sharply. Corn news was not good but
seemed to have been discounted.
lnterboro Consolidated both common
and preferred were weak throughout
the day and 1t was suggested that
there might be news In regard to the
company shortly. In common with all
other traction lines of the United States
this company is suffering. from the
high cost of operation. Its case with
the public is prejudiced from the fact
that such large bonuses were given to
operating officials.
Tobacco issues were strong particu-
larly American Sumatra and Tobacco
Products, the latter selling up to "a
recent high. There was good absorp-
interests.
Utah Copper in it's report for the
second quarter of 1918 showed earn
ings OF 81 a share compared with
$3.50 share for the same quarter last
year. But as explained before in this
column the earnings this year are real
ones with everything possible written
off. Some of the companies are writ
Ing off more than than, they are SO
afraid OF making a hoastful statement
to the tax gatherer.
Coal shares were strong particu-
larry Pittsburg and West Virginia.
There was an advance Of a point in
each class OF the stock and renewal of
the talk of a segregation of assets.
Among the railroads st, Paul and
New Haven attracted particular atten-
tion. although Union Pacific was the
unquestioned leader, 1t was announced
that a conference would be held to-
morrow between Director General Nc
Adoo and representatives Of the road.
II was also stated unofficially that
an agreement had been reached be-
tween the committee on control for
the government and the managers OF
the roads. whereby weak roads are not
to be built up by the government 1t
the expense OF the strong systema
This seems an unreasonable agree
ment to make because systems like the
Erie, which is the logical freight line
between Chicago and New York needs
only proper financing to make It the
equal of the Pennsylvania. Missouri
Pacific was said by the late e. IL Har-
riman to be as good a road as Union
Pacific except for the fact that E. Fl.
Hartman happened to take unien Pa
cinc to develop. He always claimed
that he could have made the Missouri
Pacific the great road as we'll as Union
and Missouri Pacific stockholders have
been hoping that the government would
prove the truth of Harriman's state
ment.
Inasmuch as there is little chance
for the roads ever returning to pri-
vate ownership again and as the price
to the government would be based on
the value of the roads now. the agree
ment reported to have made does not
seem necessary for the protection Of
stockholders.
Logical development OF the railroads
cannot help but leave the present
strong systems in a relatively weaker
situation. But 1t should not injure them
in the least. The country 10 big enough
to make all the railroads successful.