Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-07-06
LATEST WALL STREET NEWS

Henry Clews-Despite three days
intermission the stock market showed
striking strength and much activity.
Not a few sharp advances were
scored, but profit-taking was fire.
quent and held the advances within
reasonable limits, for it is well
understood that a runaway mark ct
would meet with short shrift from
the money market. The favorable
July report op business conditions
by the Federal Reserve Board acted
as a fresh stimulant, as also did the
brighter outlook for railroad traffic
and reports from Washington that
an advance in transportation rates
losses. 1t is further expected that
railroad problems will receive prompt
attention from Congress after the
Presidents return. if the roads are
to be handed back to. their owners
at the end of the year. The steel
activity. which was reflected in mar
ket values of the leading issues
In oil shares dealings continue very
heavy. and over 1913 concerns with
authorized capital of S35O,000. 600
were Incorporated in the principal
largest monthly total on record. 1t
| is estimated that the capital of new
OIL companies this year will approx
mate fully .$1.000,000,000. Foreign ex-
change is much unsettled. Sterling
again touched a very low level, ow-
ing Chiefly to the heavy offerings Of
cotton and produce bills Imports
are increasing somewhat, but not
sufficiently to Offset the enormous out
ward movement to supply European
necessities Dealings in kronen have
been resumed and those in marks
| corning the wheat crop are salts
factory; the harvest has begun, and
cars are being rushed westward to
oring the product to market Cotton
indicates further deterioration in
condition, which, of course, means a
ana corresponding stinening of
| values.
Not only was the period that elapsed
from the signing of the armtstice to
the consummation of the peace treaty
consplcuously devoid of the economic
tLnsettIemeht OF which many people
nad been apprehensive, but the first
ran or 1919 closed with good progress
MADE toward the restoration of nre-
war conditions. The general STABILITY
| OF domestic business during the read
3ustment era is attested by the strik-
InSy favorable record of failures,
winch were fewer in number in the
SIX months just ended than in nearly
Tour decades. and the prevailing senti-
ment IN financial and commercial cir
cies is one of satisfaction with results
ALREADY achieved and of optimism re-
sarolns future prospects. With the
1reer intercourse between nations thar
| is now possible, interest in the deyelon-
meht OF overseas commerce further in
cfeases, and the charging demands of
the many buyers who have come into
the markets here from practically
every important foreign country testi-
| mes to the extensive needs abroad for
American commodities. The present
| extreme prices apparently do not dis
courage purchasing where supplies are
urgently required, either to fill i'm
| mediate wants or for replenishment
| purposes, and consumption of staple
articles and luxuries. even in sections
where crop indications are disappoint-
| ing. continues of notable dimensions
| N The circumstances, there Is now less
tnan the usual mid year hating of
activities. and in some industries where
iev1Val from the recent repression had
| been tardy in making its appearance
as in iron and steel, the rate of pro-
auction is rising steadily. With manu-
| featuring facilities more completely
engaged than at any time since the IuIl
that followed the armistice and still
| siooIci Calls upon capacity PROBABLE
the element Of labor shortage looms
up as restraining factor, and some
establishments even now complain of
| inability to maintain full equipments
in operation.
! W. J. WoIln1an & Coin some re-
spects the traction systems of our
! great urban centers present the most
battling of all our domestic problems.
BY comparison the unraveling of the
| railroad tangle seers simple. The
! railroads have been hampered by the
conflicting regulations of forty-eight
| states. The street railways have been
| at the mercy Of almost as many mu-
nicipal boards as there are cities in
the country. AS a result an invest
ment approximating five billion dol
lars is imperiled. and the local trans
portation facilities of many commune
ties have been crippled.
Viewed from the standpoint Of
broad fundamentals. the question does
not look complicated. Transportation,
while it cannot be termed a com
modify. is at least a service to be
/ performed. Certain elements enter
into the performance of this service.
First. there must be a plant invest
power and distribution of power.
/ Then come operating expenses, there
by including labor, fuel and the va
! rious items which have to be provided
! to keep the plant going. as we'll as
the cost of maintenance. This is stat
! ing the proposition in its simplest
| terms.
The chief stumbling block in the
way Of arriving at a settlement ap-
pears to lie in the conflicting views
| regarding the value Of the invest
ment in plant. The familiar CRY of
water and ancient scandals regard
ing alleged overcapitalization distract
attention from the necessity Of deal
| ing justly with existing conditions.
1t seems to matter little that replace
! ment cost at this time might be in
| excess OF bonded charges SO long as
the accusation can be made that one
| ring" or another f1lched millions from
the treasures of the companies or the
pockets of the public a generation or
| so ago. Meantime the innocent bond
holders, thereby including estates.
fiduciary institutions and individuals,
see their nvestment shrinking in val
ue because the companies are forced
| to render service for less than cost.
Crisis at Hand.
In more than one city the situation
| has approached state of crisis The
results can easily be such that the
reaction upon our financial and indus
trial position may SAVIOR of disaster.
An investment running into the bill
lions is not to be trified with, par
ticularly when its serious impair
ment means a blow, directly or in