The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-07-14
WALL STREET NOTES
Anti-rebate Law Shown TO
Be Injurious to Farmers.
ANOTHER SIDE TO QUESTION
Points Out How New In
dustries Need Help of Railroads
and How Both Are Gamers Later.
More Sales in Two Hours than I'm
Fridays Full Session.

New York, July 13.-A Nebraskan IN
town during the week gave an instance
Of q reactionary feeling against the anti
corporation policy Of the administration
that was considered Of special signi6-
canoe by the bankers with whom he con-
versed. In his section of the State, the
Nebraskan said, there has been under
taken il recent years the twin industries
of sugar beet culture and beet sugar
manufacture
Freight was a very important item of
expense with the promoters of the new
industries, both In transportation Of the
raw product to the factories and in
shipment of the finished product from
them. The men who are 10 put their
money into the factories went to the
traffic officials OF the Atchison.
Here" they said, us an enterprise
which. once established. will give your
company heavy freight traffic annually
for many years. II viii take a great
deal Of capital TO construct the factories,
and IL will take both time and mo.ey 10
get the farmers used to raising the beets.
We expect TO make money eventually,
bAN ~ VIII ht a lew years DEAVAt VIC SEE
much return from our investment Mean
while we want your cooperation. We
want the lowest possible freight rates.
so that we can pay farmers more Tor
their beets, making beet culture a special
object for them, and at the same time
meet our other expenses. Your profit
like ours. will come from the cOntinu-
ance of the industry for scores OF years
after il is established"
The Atchison officials were practical
business men and saw the force Of the
argument. just as railroad officers from
the beginning of the railroad business
have seen the advantage Of encouraging
new industries along their lines. They
made a very low rate and the farmers
and manufacturers were getting along
well with beet culture and sugar manu-
facture respectively when the railroad
rate bill came along
The low tariffs had 10 be abolished. No
preferential rates, rebates, demurrage dis
counts, or other unholy discrimination
could be permitted under the policy Of the
square deal The result was inevitable.
The higher rates for shipment OF beets
fell on the farmers, and the higher rates
on sugar shipments on the manufactur-
ers.
Both Industries languished 10 the loss
Of all those interested and, according 10
the Nebraskan, 70 the great disgust Of
bota farmers and business men, with the
practical workings of the anti-eorpora-
ton policy.
It may be recalled in this connection
that the Atchison was indicted on twelve
counts recently for tho alleged crime OF
carrying out a contract similar TO that
made with the Nebraska sugar men prior
to the enactment of new legislation The
incident, too. a confirmation Of the claim
made by many railroad officials. that the
principal damaging effect OF the rate law
would be 10 communities keen to develop
new industries.
Indirectly Of course, loss results 10 the
railroads. since the new legislation makes
it more difficult for them 10 encourage IS
adjustment OF new industries along their
lines.
The market to-day was Unexpectedly
active. The aggregate of sales In the two
hours session exceeded by 5000 shares the
total IN the i've hours session the proceed
ing day. The trading was professional for
the most part, but it was quito keen pro-
fessiOnal trading. and resulted in The
complete route of the light-waisted bear
party which attacked Union, Southern,
ST. Paul, Reading, and the Steels the pre-
vious day
All Of the stocks in which the contest
was waged were held strong from the be-
ginning.