The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-08-26
WEDNESDAY. AUGUST IS, 1908.
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a HINT FROM LONDON.

A friend In Paris, who understands the
financial situation In Europe. especially IN
It's relation to the situation In America,
kindly sends us an article from the FL
nancial Times. Of London, which ne
thinks Is OF Importance in the matter
treated to Americans generally. HG
The London paper directs attention 70
The fact that some Of the railroad COM
panies OF the United States are beginning
to withhold returns Of gross earnings
and fears that other railroad and indus
trial corporations In this country VIII
follow suit 1t seems to our London
A contem poraty that 1.-THE lea ding interests
are taking concerted action to test the
opinion OF the public and that far
wider adoption o. the new policy OF Sc
crecy will be witnessed II the result OF
the test is deemed to be favorable" Our
contemporary draws the following coh-
clusions:
It must be that there Is some reason
4 which cannot well be urged publicly, but
which Is sufficiently strong to furnish
the controlling interests with powerful
motive Once this idea is suggested, We
< are led to follow an interesting train OF
thought The gross receipts OF nearly all
the railroads have, up to the present.
time, been almost uniformly satisfactory,
and their publication has provided the
r only potent brake to the doWnhi!l run
OF prices which has for so long been tho
feature of the American market. At
erst blush, therefore, It would seem emil
nently to the interest Of the controlling
groups to continue that publication IT
they desire to stop It they must look Tor
It's effect to be different In the near future
from what It has been hitherto. II the
gross earnings are excellent and likely 70
continue so, why should the leading inter-
ests desire to keep the public IN ignor-
ance Of them for two months longer than
was the case under the previous policy!
This is the result of the recent change
At this time 1t may be that nothing IS
gained by keeping the information. but
II has SO tar only been done here and
\ there experimentally If the experiment
does not provoke great opposition, u
will have served a very useful purpose IN
the eyes OF the market leaders. Their
plans are, at any time liable to be serl-
J ousy upset by the notification OF any
important falling or III traffic receipts,
but In future they have only to look u
little ahead and stop publication OF the
receipts OF all lu6 luoNS EAHoS So">''''
and they have an extension OF time OF
approximately two months In which to
consummate their schemes. No doubt
IT is realized that they may need such
Indulgence 'at any time now. and they
are making preparations accordingly. II
the American public can be made to SET
the matter in this light. they are not
likely TO submit quietly, but the expert
mont has been so cleverly made that NJ
considerable body of investors has been
disturbed at present. and the genera
public are proverblally slow TO take Of
fence in such circumstances. English IN
yes,ors may be advised to watch TINS
change Of policy very closely and warned
not to overlook any sudden spread OF the
movement.
These conclusions may or may not he
4 correct, but the failure OF the roads &c
make public their gross earnings from
week to week is at least open to suspI-
cIon. and It is tho worst sort Of policy
for any OF the corporations to pursue
1t Is best for them to be frank and above
board In their dealings with the general
public. II their earnings are large. u
will help them; II their earnings show n
decrease, 1t Is nothing more than is to he
expected. 1t IS not possible for railroads
TO 60 on forever increasing their earnings
and the tnrrease has been steady during
the past few years, But IN any event
II reports OF earnings are withheld, tho
public Will infer that It Is because they
are not natter!ng, and the probability II
that the decrease will be exaggerated
At any rate. 1t will have tho tendenc!
10 impair confidence. and the Londo'
paper sounds a timely note OF warning
from across tho water.
Stockholders hare the right 70 know
at least how the properties In which the
are Interested are progressing, and we ca,
ses no sutr'cient reason why returns o
earnings should not be published regular
ly as a guide to Investors. The custom
hap beer established II Is good sue
tom, and It would Do a stupid biunder To-
the corporation 10 abolish It.
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