Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-01-01
"WEDNESDAY last was similar to

"WEDNESDAY last was similar to
w every other last of the year work.
ing day in the financial district. In
the banks every one seemed busy in an
| ticipation Of the last holiday of the
year. In most Of the brokers' offices
and boardrooms there were the usual
quota of customers, and business seemed
| brisk. Several of the bond houses re-
ported good business. There was little
inclination on the part of the princi-
| pals to discuss anything apart from
| immediate transactions. For that rea-
| son many important questions were
shelved for the time being.
There were fewer changes in the per-
sonnel of the various firms than is usual
at the close of the year. those which
actually take place today having been
already mentioned from time to time.
The general feeling among financial
men, SO far as it could, be ascertained.
s that they are entering year brimful
Of great possibilities, which may ma
-crialize to the benefit Of the whole
ommunity, but which can be dashed
o pieces by the unwisdom of leaders
IN labor and politics. The prevailing
Nat prosperity will be unbounded in
1920.
A banker when asked how he ac
counted for the strength of the stock
market on Wednesday and the preceding
few days in the face of high money
rates, said that those who sold earlier
to establish losses were buying back
again. He diagnosed the present mar
ket as probable to remain firm with an
upward trend till the middle of Janu-
ury after that, he said, 1t would be
difficult to form a conclusion at pres
ent A good deal, he said, will de-
pend on wise legislation by Congress
in reference to the railroads. He said
he looked for great activity during the
first of the year in coppers and steels
and If the legislation is right he would
include rails as the three leading stocks.
The statement by Judge Gary, of the
United States Steel Corporation, was
was reflected in the movement of the
common stock of the company which
reached 10T. although it receded
fraction before closing.
Judge Gary's statement that the steel
strike was practically ended so far as
his corpora ton was concerned had been
already discounted. but weight was
given to his assertions that the com
pany was running so per cent capacity
and also to the statement that there
would be no deviation from the prices
agreed upon by the industrial board at
Washington on March 81, 1919.
The latter statement, it was said
by some tnanciers, would have the
effect of steadving the market for steel
stocks generally.
President Reticent on Railroads
There is some surprise mingled with
curiosity that no message has come as
yet from the White House on the rail-
road question, and it now appears that
there is a strong possibility that there
will not be any.
A broker said he believed that Con-
! gress will be allowed to work out a
solution without any further sugges-
tons from the President. He said he
was surprised not to see a greater i'm
provement in prices OF railroad stocks
| in view of the assurances that it is most
| improbable that the employees will use
| the strike in the future to enforce their
demands. He remarked that the anti
strike clauses in the Cummins bill are
| now likely to disappear, coincident
with the vetoing by the big labor leaders
of a railroad strike under any condi-
tions.
Another broker, speaking Of the
weakness in rails when strength was
expected in view of favorable news,
said from his observations he had come
| to the conclusion that 1t was due to the
| continued selling to establish losses
which, he said was still going on very
! briskly, and promised to continue to the
last moment, although the fact that
transactions carried out for that pur-
pose on the last day of the year must be
in cash.
TAXING it all in all the feeling about
the future of rail securities is very
optimistic.
A banker remarked that the clause in
the Cummins bill to which he found the
most objection was the one calling for
q division of profits after fixed guar
antee had been satisfied.
He said he objected to both require
ments on principle, which savored toe
much of socialism. He believed if II
well managed road earned certain
surplus. after having the public pro
tected through the fixing of rates by the
government. it should be permitted to
retain that surplus, either for dividends
or extensions and improvements, or
both.
For, he continued. after all is said
and done good management in railroad =
ing or farming or industry is always
reflected in earnings, and there is no
reason why good management in any
line should be penalized by bad manage
ment in the same line.
He said he knew the argument ad :
vanced against his opinion is that a
railroad is semipublic affair, and in
this differs from the farm or factory
privately owned, but when we get down