The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-01-06
TEMPORARY SETBACK.

The action OF the supreme court of the
United states in reversing the circuit
court of appeals for the district Of New
York in the Consolidated Gas c1Se. the
final decree being against thu compa-
ny, had bad effect in Wall street and
prices went down rapidly. Consolidated
Gas losing 26 points in jig time. But
the supreme court decision was not
alone responsible for the weakness of
the market. The boom" I'm business
which was forced Immediately after the
election of Mr.. Taft has collapsed and
the country has returned to the usual
slow and painful process of recovering
from the effects Of a panic
From reports at hand it is learned
that there are at present more idle
freight cars than at any time since last
September and "empties" are being
shunted onto the sidetracks every day.
The fortunate individuals who particl-
pated in the semi-annuai distribution of
interest and dividends decline to REIN
vest their earnings in stocks at the
present prices, and Wall street is suf-
fering in consequence.
peculiar feature of Tie present sit
uation is the TACT that the cost OF liv-
ing has not been lowered and there has
been no readjustment of prices to meet
the altered conditions since the panic.
+ No concessions have been made by the
steel trust TO the railroads and the lat
ter have been compelled to recoup them
selves at the expense OF the country
at large by raise in freight rates.
Fortunately. the great west mas been
prosperous to a certain degree all
through the panic, and especially is this
true of Utah. In the long run. how
feet of the prevailing high prices. The
situation is summed up by Henry
Clews in his annual review of financial
conditions:
THE costs of production have been
very seriously enhanced by the rise in
labor. the shortening of hours and the
advances in raw material, the result
being that prices cannot now be main
tanned except by the introduction of
fresh economies. In many cases selling
prices have been pushed so far as 10
seriously restrict consumption-a ten
dency which if continued. must soon
compel a general resdjustment of val
ues. The so-called new doctrine Of lin
tied production and high prices cannot
last indefinitely. Mr.. Carnegie is emil
nently sound in his principles when he
says that business should be stimulated
by lower prices. and that the true poll
cy is that of large sales and small
profits. Extravaganza must give way
to economy. Already there is general
complaint among consumers about the
high cost Of living. which means that
consumption is no doubt being checked
by unfavorsble conditions. He would
be a wise man indeed who could scy
with certainty that the price movement
had reached its zenith. so many and so
complex are the influences at work ar
feeting values About all that can be
said is that our markets as a whole are
not burdened with over-supplies. and
until supplies overtake demand no gen
eral weakening can be expected. There
is little chance of any immediate de-
cline in the price Of food products. be-
cause these. a. already stated, are COM
paratively scarce the world over. An
other element is that considerable re-
sponsibility for the high cost OF living
must be placed upon our tax system.
When national state, county and city
taxes are combined they amount To a
very serious item. the cost Of which III
timately falls entirely upon the cou-
sumner. either in his rent or in an en-
HANGED cost of the necessities which
he buys Public extrsvaganee increases
the tax burden enormously"