Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-09-06
SKIES CLEARING
IN WALL Street
Encouragement Found in the
Favorable Turn in Railroad
Labor Situation
WEEKS EXCITING MARKET

view OF Jne SlOfh muist' dpp'"'S ih '"V
Sun today as follows:
The current week in the securities
market seemed clearly to point to the
Interesting fact that there is larger
number OF persons who feel cheerful
with respect to the state of the country
than those who do not. That this
happy frame Of mind was not engen-
dered merely by surface Developments,
such as the labor truce and definite
progress toward railrond legislation,
was obvious.
" In the first place. che labor situation
took a highly constructive turn sew
eral days before the stock list gave its
display of animation and strength on
Wednesday. Before Wednesday the un-
: dertone IT the market wns good, but in
no manifestation conspicuous. There
had been for some time steady accumu-
lation of stocks sufficient to 'nullify in
large part the utmost efforts of the bear
traders.
Shares thus purchased were bought
with a view TO holding them for an in
definite period. They we're put away
In boxes, taken out of the street It
required something akin to bear panic,
like that witnessed on Wednesday, to
bring forth any considerable volume of
those holdings.
Those who were induced to part with
them did SO rather reluctantly and were
at once placed in the ranks of the sold
out bulls, whose first thought was to
get back into the market. Added to the
number in that category were the more
timid souls who had previously liqui-
dated and thus entirely missed the op-
portunity to reap profits on the long
side which presented itself in the mid
die of the week, .r .....
Could Not Keep Prices Down
The paper profits which were not
realized on Wednesday were taken on
Thursday. and this in n measure helped
the bears in their renewed attacks. The
latter did not find their going easy.
however, except in the case of spectacu
lar performers like Crucible Steel and
Baldwin Locomotive. They found that
they could put prices down, but that
they could not make them stay down.
They were punching a cushion. a sport
which has limits of enjoyment.
In the second place. several DAYS we're
permitted to elapse before the market
rejected the introduction of the Cum
mins railroad bill in the Senate. Tint
measure was too well summarized to fail
In 1mparting fairly clear idea OF its
provisions. The fact of its Introduction
was sufficiently constructive and did NOT
REQUIRE the passing of immediate iudg
ment on its merits. ~. =
IL was not supposed that the bill had
the slightest chance of passage ne IL
s.oou, put It was readily recognized as
dorniing basis for discussion and as n
starter for Congress earnestly to tackle
.he prohiem of turning the roads hack
70 their owners. 1t was also recognized
as an ehort TO satisfy labor. capitaI and
pubic. one of those ambitions efforts
Which often fails to satisfy ANYBODY
WILL Tor example. be hard for the
capitalist to see any merit in an attemnt
70 hmit return on capital because such
provision will tend to turn away that
inltiative and incentive which baye
Quilt up the railroad system of this
country. But some concession must ha
made to those who fear, and NOT entireIy
sroundlessly, that there may be re :.
turn to capital abuses.
Would Prohibit Strikes
III security issues are to be closely
scrutinlzed by government authority.
on the other hand strikes are to be
pronloited. II the Interstate Commerce
commission Is to retain its rights n
transportation board of five members 10
to be organized to share that bodv's
responsibilities.
The country is to be divided into rate
districts, corporations will be under
national laws and not state laws. and
labor will have two representatives in
directorates. 1t provides in case of
congestion for the pooling of trapsporta
tion facilities. Rates and wage scbe-
dulles. and the income of the roads in
irelationSto both is carefully provided for
In the powers secured to the Interstate
Commerce Commission.
The bill is gigantic comnrom;se 4,
short. 1t makes one hopeful omission
IL does not stipulate that roads n;ust
earn per cent, . per cent or per cent
ana no more. Restrictions in that res :
pect emanate from the commission after
1t has bad certifcation from the trans-
portation board which is empowered to
Enquire into the state of the credit of
: all common carriers IN reou .
late commerce as amended and inform
Itself OF the relations between the oper
ating revenues, the operating income
and the net operating income of such
carriers"
While the Senate committee labored
and brought forth this unusual bill.
even greater promise was seen in the
work Of the House committee which
has the same purpose In view, Between
the, two there is confidence that n work :
able basis will be founded. Whatever
( the fr,nt of the labor at this stage, it
spells progress.
Bears Aided by Gompers
The, bears were given al uLexpected
opening yesterday when Mr.. Gompers's
telegram to the President. who had
started on his tour of the country in
behalf OF the peace treaty, was pub
lished. In nutshell 1t expressed fear
that the labor leaders could not hold
the radical elements in the unions in
check unless the President should re
double his efforts to bring about a CON
ference between them and Judge Gary
pm the subject Of the steel situation be-
fore the union leaders should meet in
Washington next Tuesday.
Why this sudden talk about "bru-
81 -