Evening star., 1927-03-08
MEN AND MONEY
By M. S. Rukeyser.
(Copyright. 1927

| Ordinarily the adjournment of Con
gress causes no widespread weeping
in the commercial and financial world
1t is. however, symptomatic of the
| current absence of political fears
among business men that there Is no
| widespread rejoicing that the Sixty
ninth Congress has come to an end
Big business feels that under the
present administration its legitimate
needs are amply protected at Wash
lngton, and, accordingly, 1t was little
worried over adverse legislation. II
felt confident that a veto from Presi.
dent Coolidge would prevent unfair
legislation, and it was not disappoint.
ed in the rejection of the McNary.
Haugen bill, by which Congress
sought to bring relief to the farmers
by means of the price.fixing principle.
Ordinarily. Wall Street wants a do.
nothing Congress, but it's chief current
regret is that so much constructive
legislation that was pending died in
the legislative jam. 1t derived no sat.
lsfaction from the filibuster which re.
suited in the failure to pass the sec.
ond deficiency appropriation bill. II
would have welcomed legislation to
CARRY the merger provisions of the
transportation act, which in its pres.
ent vague form is retarding actual
physical consultations of railroads.
Encourages Dissenting Minorities,
The law as it stands, it is alleged
unduly encourages dissenting minor.
ity shareholders to create a nuisance
value for their holdings. In the case
OF the pending Northern Pacific.Great
Northern unif1cation, the amalgama.
tion IS TO be made temporarily by a
series OF leases, and in the Chesa pea ke
ohio deal by stock ownership Of the
Erie and Pere Marquette bv the
Z. d 0. Actual corporate mergers
VIII be held off until the law is clari.
fed 20 e'e'i +
Another proposed law which died
III which the street was interested
was the alien property bill. Germanv's
recovery would be facilitated during
this critical period " on adjustment
OF this tangled question. Having
made heavy loans to Germany, Wall
Street has an interest in the economic
recovery Of the former enemy .coun.
try.
The street would also have liked to
have seen the radio bill to end the
current anarchy in the air adopted
The short session of Congress,
which came to a close at noon March
4. was essentially a legislature on
nrancial matters. The passing of the
appropriation bills was it's chief task.
McFadden Bill Passage.
The act for which it is likely to he
remembered in history was the Nc.
Fadden bill. which gave the Federal
Reserve banks perpetual charters and
thus helped to remove them from DO
litical control. The act also tended to
put national banks on Il parity with
State banks In the matter of opening
branches.
Haugen bill, also of q business nature,
was the outstanding incident of the
session.
Other bills actually passed in, the
short session were largely interlaced
with dollar marks A recital Of what
Congress accomplished emphasizes the
increasingly economic character Of
the work Of the national lawmaking
body.
The list of bills passed in the short
session includes:
Rivers and harbors legislation
authorizing projects totaling ST..
000, 900.
Increases in salaries to Federal
t,~
500 to $4,000 Tor district Judges, and
from $4,000 to S20.5G0 for the Chief
Justice Of the United States.
Ten million dollars was appropriated
to combat the European borer, which
, has been destroying growing farm In
ventories in the Eastern corn belt.
Federal aid to States under the ma
ternity act was extended until June
80, 1929.
Interest i'm Tax Reduction.
Inspection and regulation Of imports
of milk and cream.
Wall street would have welcomed
legislation authorizing further tax re-
ductions, but as practical matter
did not expect such action in the last
Congress.
The strength in the security mar
Fkets during the last two and a half
years has, been encouraged by a feel
ing Of political security on the part of
the investing classes.
The new prestige of railroad shares,
which has been an outstanding as
pect Of the later phase of the bull
cycle, has in particular reflected an
absence of political fears. The rise Of
the railroad stocks reflected not only
improved earnings, but also a wide.
spread belief that political hazards had
been eliminated. Investors are now
acting on the assumption that the
railroads have ceased to be a foot ball
of politics.
AS long as Coolidge and Mellon are
In the riders seats, the financial
world expects no serious interference
from the realm of politics.