Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1904-04-04
THE FINANCIAL SITUATION.

THE FINANCIAL SITUATION.
The weekly letter to The Optic
from me banking house u Henry
Clews deals principally with the sit
uation In railroad circles and the
earnest efforts being made among
the great systems TO readjust them
selves to the new conditions estab.
lished BY the Northern Securities de-
cision. The effect 81 this decision has
been TO remove the uncertainty which
has operated al a casck 70 all import
ant railroad deais.
Now that competing roads cannot
be put under control Of q holding
company, he says, other meal are
pelng sought Tor railroad develop
ment, for restraint OF cut-throat com
petition, and for stability In rates and
earnings. The enormous growth OF
our railroad systems has created
forces which tax the ingenuity OF our
ATTEST fnancicr5 and lawyers 10 with
stand and representation Ii simp-
~ driving the great leaders into some
sort of cooperation, which they nat
uraIly desire To make as permanent
as possible. Just where the line shall
bc drawn between too much concen-
lgraAien and toe much competition is
the problem nov before the railroad
magnates Of the west; and 1t Is i'm
possible for either insiders or ontsid-
ers To anticipate the final outcome.
Suffice IL to say that move of great
importance are now being made on
the financial chessboard tho ultimate
outcome Of which Is likely 10 be ben
~Eeficial ~ all concerned. Incident %
these final objects there may be tenn
perary differences Of opinion, as well
as strong play for position and mas
terry, but al interests seem agreed
that something must be done TO con
serve the interests Of both owners
and users of railroads, who are alike
benefited by stability and reasonable
ness OF rates. Since unrestricted
competition has proved injurious te
all interests, and consolidation o.
competing lines has been decided (
be against both the Sherman anti
trust law and public interest, SOM
other device must be utilized, tempo
rarily at least, until a better q !
secured. The community-of.interes
idea has consequently received
fresh and powerful impetus from tn,
recent declslon Of the supreme cour'
and most a the negotiations Q 6
ling on seem 10 be based upon tina
plan. One thing Is quite certain
Those who lead In these movement
( are not going to risk another such 9,
7 ~perience as the Northern Pacific pani
of 1901. There Is fortunately little
II any, probability Of a repetition Q
that memorable event. About all tina
! can be said Is that exceedingly In
!. portant negotiations are under wa
between those who control the val
ious continental railroad systems, an
] that these parties are earnestly worl
. ing to reach an understanding, eithe
/ by friendly Team or possibly throng
the courts. but not BY a contest
: buying for control The sharp at
/ vance In Union Pacific a nnquet
! tionably the result or these moys
i ments; hut. since nearly all OF tn
! Pacific roads are still enjoying e
!. ccptional prosperity and earning COZ
s%iderably more than present div
i blends, the present IS an especial
I opportune time for reaching an agre,
! ment: much more 50 than II TRAIN
! we're scarce and dividends probl,
NAUTICAL.