| Show RAIL A IT ACKS SEEM ASSING nv Jh Ii I 1 Special Standard Correspondent Standard Standard- ier i-ier 1923 3 EW BW YORK Sept 1 With the vacation season reason drawing to a close and th the period ot In the financial markets presumably I about oser o er the feeling aa Ill to the future Is iq tempered with optimism business The outlook for fol reasonable bust busi ness nell nee prosperity Is fa favorable fa- fa I No one expects a n boom but on he ha other hand there Is no expectation of depression E Een en the admittedly unsatisfactory con con- con dillon condition of affairs abroad Is not gt gisen opInIon en much emphasis The Tho Ion I seems Beems eem to be bp that the European has already done about domestic as much damage to our own do business as It Is 18 likely to todo do nn and 1 while there there- la is always alas a possIbility forthe orthe of ot some sudden turn for forthe the worse norse orse in iTt foreign affairs for the moment at least that factor Is ignored nored political It Jt h also the feeling that pout pout- ical ICI attacks upon th the th- railroads ha hao 0 lost some o of oC their forces The troubles of oC the north northwestern estern seemed to ha have hao e turned the keen edge edse of resentment When hen thE AtChison last spring failed to raise Its dh dividend rate as S Its earnings earning 1 warranted and as the stockholders ers had hoped the given excuse was en that a raise In the dl was a s not II advisable Isable under all all- InS conditions condition In politics It Is prosperity and not ad adversity that attack and on this account IsI I no other the northwestern roads hope for a breathing spell It railroad I Is true that as a n whole hole the railI 1011 rail rail- rail I road situation I Is favorable Ca from on earning stin lag Ing some come disappointment over o the I Jul July statements The Ille fact that the Increase In f Iro gross vv w as 1115 not proportionately saved sa for Cor net can easily be explained OTi on the of ot heY he 1 vy expenditures expenditure for m in preparation for fat forthe the record-breaking record trat- trat traffic fic fie In the fall Call n Il ADVERSE T r LAWS h The only logical e for tor th the failure of oC In estol s to I an Interest in railway rall securities Is IsI I their teat feal of ad adverse erse gO I If It this fear is lq I modi fled I the ho upon the tho heL entire 1 in- in inI I I t VL marl cannot not be lIe e other than beneficial This Improvement In sentiment liis I cen ceo this week eok In the market for Cor both d stocks and bonds This does not a apply to 00 those bit h grado grao investment of the tha saving bink class PrIce fluctuations in this group a al goer s b bv b the changes S In the tho mone market It does to those stocks and bond bonds on whIch this the return to the ins Investor estor is front from 6 to i 7 1 per cent on I stocks StaCks and admitting nd from Crom 61 it up on bonds Even In nd- nd bean benn that there is certain to to be nn an attempt In the this new congress to the tJ ti act beI I to the tile disadvantage antage to the hairier airier and that the Investors estors must nl- nl always al always ways take tahe his chance of at business fluctUatIons there Is a point at which the price discounts these evidence prospects and there Is some e e evi eI I I- I dence that that point has been een about reached There is still sUlI another influence that hl hiss hia 1 to depress the I price not only of oC railroad stocks stocK I andin bu hul of f other Investment ill stocks and In some degree Investment hond inthe is 11 the Income incon-ie tax tas which In the case of Investors of large II takes so o 0 large a pirt rt of ot the tio return that the net nel 5 virld is I ally greater grealEr in itt ta tax ta exempt low coupon late government and mu-I mu mu- mu niu Invest securities lo 10 1 o such invert invert- or ore current r turns I u on taxable H H se- se so se-J se H H L 11 dIC up no longer 0 It has been ested ested this e week 1 that part of the tile recent In the has sn n due duc ndue to the pressure of sales this source Only when hen a Ity st-cui-ity st has leen distributed among t large number of small mall Investors In IS the market undisturbed b hI bv this condItio A cave case in point Is American Telephone Telephone- lI A Telegraph The fhe fact tact that lust this corporation has nott no noa a freater eater number of o stock stock- holders holers stockholders than an any other operates stabilizing greatly to Its advantage in izing tac market for its shares securities Spoil ins of ta Ia tax exempt ties the strong points of or the land ban bank Ie bonds bandl both those thom tho e of oC the gen Jen tren-cral tren eral cral federal and anil of oC the joint cLock better banI banks are to ba bo bet bet- bet ter n There is 13 a sharp distinctIon between the two The federal Imd I ind md banks are for tor the benefit of oC the elS who are aro the stockholders The joInt s tock land banks operate for tor forthe the Investors benefit of oC the private ate Invest Invest- ors who ho 0 own n the th-a stock In both cases however hO the security Is the land Ian theland and restrictions under 1 the loans are Jre made a ate aie e so rigid and isso the government gO supervision super Ison Is so thit the In I is verv er high It is also worthy orth oC of note that nil all the tall talk the b farmers his Ms 1 nia ivI l no effect on this market marlet It istha all ail goes oes to ahoy shoy how lII f la is th cry about about general agricultural distress even ien en though the tle farmer farmr ho ho raise raises wheat exclusively o ely Is basing ha his difficulty future The Tho controversy contro ersy about the tu- tu fu ture tore of the electric street railroads railroad will not down All northern New e Cora forn Jersey dl did n without street cars for Cor a month during the strike of oC the tho j Public Service CT Ico railways There was as n II good deal of oC corn com com plaint complaint but lUt the people managed to I worry along with the buses an the private ate p cars |
