Evening star., 1919-04-20

trio Company system is a public ne
cessity and must exist and be op-
Grated for the convenience of the
public.
A Wonderful Market.
For more than ninety days the New
York stock market has been climbing
doesn't seem to be any let-up. 1t is
a strong display of the confidence of
the American people in the outcome
of all the worlds uneasiness that
now causes shivers to chase each
other down the spine of the conserva-
tive man as he reads his morning
papers.
Interest centers almost entirely in
the industrials, the railroads moving
with the same slowness that has
marked their action since the gov
ernment took control, with the un-
conditions and terms under which
restoration will be made when final
ly agree upon.
President Wilson a Factor.
The fact that the President has
taken a hand in the dispute between
the director general of the railroads:
the Department of Commerce and
the steel manufacturers in the mat
street faith that an agreement viii
be reached by which the great buy
ing power Of the railroads of this
country will be speedily exercised
for the good of the roads and the
direct assistance TO the reconstruc-
ton period in the steel business.
Wages have not been reduced in
the steel trade. but they have been
withdra wn from many workmen en-.
tirely through the blowing out of
furnaces Moreover. the refusal of
the director general to place orders
at the rates agreed upon caused other
interests to hold aloof and has. nat
urally injured business revival in the
steel line.
Steel Corporation Matters.
The near approach of the quarterly
meeting of the Steel Corporation and
the attendant Developments, DIVIDEND
declaration, etc. have caused consider
able differences of opinion on the
street, particularly as to the dividend
on the common stock. The last divi-
dend was on the annual basis of b
per cent, plus 1 per cent extras
In view of the reduced business, de-
creasing orders. etc. it would not be
surprising to see a further cut in the
extra or even it's abandonment en-
tirely.
Investment Trust Suggested.
The Outlook in the Magazine of Wall
Street says:
TT is to be noted that the foreign ex-
change situation facilitates sales of
foreign securities to American inveS-
tors. When 80 cents at New York IS
equal to 81 in Europe, a $1,000 bond
can be sold here for 5000 and still
return $1,000 to the foreign seller
since he gets a 500 profit on ex-
change. A fve-year 5 per cent bond
sold to our investors at 80 would
bring them a yield of Il to maturity.
adding greatly to the attractiveness
of the security.
Paul Warburg suggests the creation
of an investment trust-similar to the
A m eri an Securities Corporation,
which took over miscellaneous French
collateral and issued it's own stock to
investors here. 1t is highly probable
that something of the kind will be
done after the victory loan campaign.
1t is a constructive and practical plan.
"A fraction of l per cent would
pay the cost of organizing and man
aging such a trust, while the guaran-
ty of the trust. based on a variety of
different securities handled by 1t,
would be well worth to the investor
the slight additional expense. And
the Trust would have the great addi-
tional advantage of substituting
known security for those which are,
to the great mass of American lnves-
tors. entirely unknown.
1.-The possibilities of our export trade
would be greatly enhanced by the sale
of foreign securities here, thus SlvmS g
the foreigner the means with which
to buy our goods