The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-09-26

Vermont were anticipated and had no /
effect The only uncertainties still /
unmeasured are the railroad rate Ques- I
ton, and the Standard OIL Tobacco /
and other cases before the Supreme .
Court AS for the rate problem. it is !
premature to assume the outcome Of
that will be unfavorable. In the first
place it should be remembered that
the Interstate Commerce Commission
is a judicial and not a partisan body.
II is bound to deal justice equally to
railroads, investors and shippers.
Whatever the grievances may be on
either side, it is quite apparent that
the advances i'm wages recently grant
ed by the roads have imposed very
serious additional burdens upon e9rn
ing capacity. Although traffic has
been well sustained, current net earn
ings of nearly all the main lines arc
showing rather disquieting decreases.
It is evident that, unless traffic in
creases or rates are increased, divi.
dends must decrease with a conse-
quent unsettlement in security values
Moreover if the profits of the roads
are to be seriously impaired, many
improvements must be postponed, and
the roads will be obliged to curtail
expenditures in many directions; all
of which will affect labor adversely
and throw many hands out of employ
ment. The outlook is not an assuring
one; yet there is good reason to be-
lieve that justice and reason will ulti-
mately prevail as between the govern
ment and the railroads. Clearly, the
latter are entitled to some cOnsidera-
| ton in the matter of rates.
1t would seem also as if unneces-
sary anxiety existed regarding the
coming decisions of the Supreme
Court That body has always con-
sistently stood for the preservation OF
property rights Whatever its deci-
sion may be as to the methods OF the
great combinations before the bar, it
is not to be supposed that the Supreme
Court will seek to destroy them. Its
policy will be more likely to conserve;
and, if changes in methods of Organi-
cation are to be enforced, such cor
porations will at least have the advan-
tage in future of being immune from
public criticism. They will be in
harmony not only with Government
policy, but will have complied with
the highest law of the land This or
deal, once passed, will probably leave
these properties comparatively safe
from hostile political attacks, and
prove a positive benefit rather than a
disadvantage.
The general business situation is
improving. Trade is quiet and being
conducted on much more conservative
lines than a year ago-a policy which
is likely to prove helpful and result in
a larger and sounder activity later on.
There is still some timidity in bust
ness circles over uncertainties which
have already been discounted in the
stock market, but in due season these
drawbacks should gradually disappear.
AS soon as liquidation in commerce
and industry has been as thorough as
in finance there would seem to be lit
tie reason for delay in business re-
vival. The three great commercial
nations of the world-England, Ger
many and France-are still enjoying
high degree of prosperity. In all
three countries, and especially Eng
land, both domestic and foreign trade
continues upon a large scale without
interruption. There is no lasting rea-
son why the United States should be
the only great country where depres-
sion prevails; but such is the tact.
This country has been suffering from
past excuses. For eight months at
least, if not longer, we have been pay
ing the penalty; yet as long as activity
continues abroad it is reasonable to
hope that we, too, should regain our
share
Now that vacations are over the
stock market should resume more nor
NAL activity. In the absence of fresh
unfavorable developments the market
would probably respond more readily
to an upward movement than down
ward. Good investments are selling
at very low prices, having discounted
unfavorable factors; and there is no
doubt an abundance of capital held
awaiting Investment when confidence
begins to revive. There has been a
marked falling off in the supply of
new securities, and this also must
. have a favorable effect Although the
outlook is not by any means entirely
clear, still there is a tendency to turn
away from pessimistic leaders and
soiIov, thoea of a more hOneful temDer