The Washington herald., 1910-06-13

New York, June I.--When early in tbs
/ present session of Congress the measure
was introduced there at the instance oil
/ the national administration which has
! come 10 be commonly known as the rail
way rate bill there was a consensus or
the part Of political leaders, railway in.
| terests. and all other persons concerned
that the bill or something closely re.
| sembling II was certain to become a law
Very little objection was offered 10 it by
| the railway corporations, and indeed only
one such corporation appeared at Wash.
ington before the committees OF Congress
/ to suggest amendments to 1t.
! Since then the bill has been greatly
changed. but its two main features, those
OF the establishment Of q commerce court
| and OF the grant of power 10 the Inter
state Commerce Commission TO suspend
rate increases by the railways until the
proprieiy Of these could be justified by
investigation, are the same It is per.
haps well for Wall street to bear in
mind these facts IN making up it's mind
TO the character OF the much discussed
agreement between the railway officials
and President Taft, reached at Washing
ton a week ago
Al no time since the railway rate bill
was introduced has there been any idea
on the part OF railway managers that in
creases in freight rates could be hereafter
secured without obtaining the approval
thereof OF the Interstate Commerce Com
mission. II was perfectly well known
that nrGfagfa rsF011i1 he nv
shipping organizations, at least in GER
tain sections Of the West against in
creased freight rates. and that these pro-
tests would Of necessity be considered by
the proper authorities.
File Notice of Increase.
Feeling the pressure of enlarging ex-
penditures a few Western railway COM
panies took the lead In fling notices of
rate increases with the Interstate Com
merce Commission. not with the idea OF
evading ar investigation by the commits
sion in the manner outlined. but solely
with the purpose OF getting the matter
over with as soon as possible.
President Taft and his legal advisers
got the impression, however, that this
action was taken by the railways for an
Interior purpose: that is 10 say. OF get
ting freight tariffs established so that
later on they could not be easily re-
duced. If at all. when the new railway
rate bill became a law. Therefore the
President invoked the antitrust law IN
an effort which might or might not have
been legally well founded TO undo what
the railways have done Upon a confer
ence between the parties interested the
true state of affairs became revealed.
The railways disclaimed any intention
OF attempting 80 steal march upon the
President or the Interstate Commerce
Commission. and the President for his
part promptly declared that he had no
more idea of applying the antitrust law
10 the operation OF freight traffic asso-
Citations and trunk line committees and
the ike than President Roosevelt when
he was besoaght 20 prosecute these neces-
sary organizations Of railway men and
declined so to do.
The announcement by the railroad COM
panies that they would withdraw their
proposed new freight tariffs until the
railway rate bill became q law was coin
cident with the announcement by the
President that he would withdraw his ap-
plieation for an injunction. The entire
situation as regards the railways re-
verted to the status that 1t had all along
previously occupied and spectators in
Wall street discovered that they had been
soaring themselves and selling stocks for
no abiding reason whatever. even il cause
for this scare bad certainly been afforded
by the supposedly radical position as
sumed by the government at the outset
Of the affair.
Feeling Is More Cheerful.
In the main actual financial develop
ments last week were such as 10 logically
afford grounds for a more cheerful feel
ing. both as regards the stock market
and business affairs. There are some
straws. as yet perhaps slight. but, still
nevertheless. all pointing in the same d.
rection. that 'insuFgent1 feeling through
the country. and particularly IN the
West is ahating its force.
Part of this is due to the discovery. to
which reference has already been made,
that much of this insurgency is unadul-
terated sectionalism. or demands on the
part of certain Western legislative con-
stituencies that the interests OF the
Eastern half OF the country shall be sac
rificed for their benefit But I'm these
Western sections themselves a plain re-
action is in progress against the leader
ship of such men as La Toilette and
Cummins. Senator La Toilette was re-
pudisted by the Republican convention
of his own State and the Cummins party
met with a practical defeat in Iowa
Along the same line is to be accounted
the perception of the Democratic MEM
bers of Congress that the business Inter-
ests OF their communities are being hurt
and not helped by Capitalization Of
power at Washington
Period OF Easy Money.
OF financial importance proper the re-
duetion of the Bank Of England's dis
count rate in the middle of the week
was. of course, of the utmost signif-
canoe No other construction can be
placed upon 1t than that the interna-
tionai money situation is undergoing re-
taxation and that the leading financial
interests in England look for a period
of easy money there for an indefinite
time TO come. The English bank rate
may very likely not be reduced further
this summer, inasmuch as the expecta-
ton seems to be that England viii be
called upon to send some money 10 this
country in the fall TO help in our crop
But the period of money
here is at an end for months
TO come, at any rate.
As regards agricultural concerns. some
was afforded by the pub
lication of the governments general crAp
last Wednesday. The report ex-
hibited, as If was known it would the
effect of the somewhat lower tempera-
lures that prevailed over the country
during May. The promise remaining is.
nevertheless. for harvests this year
above ratker than below the normal.
The governments present figures indi-
cate a total wheat crop of 7O9, SOC. 600
bushels. But last year. when the final out
come of the wheat harvest was 7s7. ,0o0
bushels the same estimate was for a
crop of but 65z. o00. coo bushels.