New-York tribune., 1908-07-19
HIGHER RATES EXPECTED
Strong Market Ascr1bed to This Be-
Hef-Henry Cle7cs's Tie,rs.

The freight rate situation continued yesterday to
be the allabsorbtng topic in Wall Street Men like
E. H Hartman and James J. Hill favor general
and immediate increase In all classes OF rates.
but It admitted that the opposition OF Presi-
dent McCrea OF the Pennsylvania and President
Baer Of the Reading would be sure to carry great
weight.
The fact that James T. Harahan president Of
the Illinois Central. and the heads Of the South
eastern roads. favored advance gave the ad-
yocateS OF the higher rates still more confidence.
On the other hand. the opinion Of Judson c. Glenn
ents, member of the Interstate Commerce Com
mission. published in yesterdays Tribune, that
general advance would constitute fragrant viola
ton Of the Sherman antitrust law and would
render ali the railroads concerned liable to severe
penalties furnished food for much sober reflection.
Many persons attributed the strength Of the stock
market to the general belief in the best Informed
quarters that rates would go up.
Henry Clews argued that temporary advance
of per cent to help the railroads out OF present
difficulties would be advisable provided the rail-
roads agreed to restore the old rates
conditions permitted. He feared that permanent
advance would be used as the basis for tre-
mendous bull speculation in the stock market
which could not fail to end In disaster
Whether the proposed advance OF 10 per cent in
freight rates is being used part of a big stock
market speculation not remains 20 be seem.
said Mr. Clews According to 'Poor's Manual the
freight earnings of American railroads last year
81. .s25 o0C. ooo- Ten per cent OF this amount
would mean over s1SOOo0 COO increase in revenue.
The railroads have already put into effect many
important economies. and while expenses had been
enormously increased by high wages and high ma
terials still the roads should now be receiving the
benefit Of improvements made for economical re-
suits. OF course. the railroads would soon be in a
critical position II present conditions were main
tanned.
Public interests will have to be considered. and
It will also have to be recognized tha. an advance
in freight rates is not the most likely method of
stimulating revival in trafac. which, after all. Is
the one thing really needed If the advances in
rates now contemplated really put into ehect
and maintained tho year 1909 may easily become a
far more profitable for the railroads than even
1907 Should these plans be successful it is evident
that the railroad business would be placed upon
much moro profitable basis than heretofore: that
dividends would quickly from recent losses.
and that this advance would be utilized as the
basis of a huge speculation. Such result "ouio
be welcomed by the speculative elements, out wound
be exceedingly distasteful to the moro conservative
classes in both business and financial circles sF
TT cannot be ignored that higher rates would
denress and not stimulate traffic. and the effect OF
such action upon public opinion might prove dan-
xerous in the extreme, especially in face OF
political campaign.
The stock Exchange house Of Shoemaker Bates
& Co., in its weekly letter. opposed an advance IN
freight rates and recommended lowering oi
wages The letter said in part
We have all along been urgently OF the ss vie~
ton to the return Of period Of normal ACTIVITY nv s
r. is doubtless true that political exgenc1es OF So
cslIed poiitfcal necessities make any such action
T.x on the Ga # no unWse
the time we cannot for our part ~ see eates
wsd0g espeeaH ef Tssaas at time the
in great need Of an increased volume or ee the
scennmc warrant for nor the logic of attempting
tn tax business into existence