The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-06-04
HENRY CLEWS' VIEWS
ON THE INJUNCTION
(From Henry Clews' Weekly Market
Lottery

letter.
NEW YORK. June A severe blow
has been administered to financial in
terests by the unexpected Injunction
against an advance in railroad rates. It's
hrst effect was to Startle Wall Street
ana force demoralized selling Of stocks.
What the final outcome will be cannot
now be foreseen. It means at any rate
period OF prolonged discussion at
Washington, together with a general re-
'oDening Of agitation against the rail-
roads. Out Of the struggle so suddenly
precipitated there sholild come some ra-
tional and permanent solution OF the
railroad problem; but unfortunately duE-
Ing the interval a period Of more or less
unsettlement Ia values must be ex-
Dected
The present status of the railroads is
unbearable. and some judicial power is
necessary 70 settle the differences be-
tween them and the people. Railroads
are natural monopoly. and as such
exercise arbitrary powers which newt
ably invite the distTUst of shippers and
should be restrained.
Railroad managers are human. and,
however broad-minded and liberal they
NAV be. are likely in the matter Of
rates 10 put-9n all the traffic will bear.
Shippers desire stable rates good
service ana equality Of treatment These
SoEanJages they generally receive. vet
ma themselves at the mercy Of the rail-
roads IN the question Of rates The
Ireight rate from the nature OF the
Ease rs not subject for bargaining
She usual method OF settling business
NEUTRALITY-SUSPICIOUS. the alarm of shin
pers at the recent movement of the
IItoaos 70 advance rates. Shippers be-
IieEe the advance to be unnecessary,
ana express serious alarm at this eX-
ercise Of arbitrary power free OF re-
stralnt- on the other hand fba rail
roads md themselves face TO face with
tne ptooIem or securing sufficient rev
enue 70 meet the increased demands Of
iaoor and rapidly growing expenses.
The Solution.
There seems TO be but one f-ua soIy-
ton Of this antagonism in the relations
between the railroads and the people.
that is the establishment Of some court
or tribunal designed to arbitrata ana
settle all such differences. II sucb a
court could be devised, securing fair
treatment to the railroads and fust and
reasonable rates TO shippers. a long
step would be taken in removing one ~
the most acute sources Of financial and
political disquiet.
The railroads are evidently detor-
mined 10 secure better rates and ara
now fling notices Of advances f1divi5-,.
any instead Of collectively b5Ir ssfJa
rom this the general outlook. thoUp5
SoIle"hdt mixed, IS in many respects
favorable. Recognition Of over sr,a.,.,,T,,
uon In western land has forced gem
eral retrenchment by interior banks
ana Ine steady CuTtailmpnt Of credit IL
gradually curing some Of the financFaI
MS from which that section is suferiDg
terror banks viii not be able to finance
the crops as easy as usual. owing to
expansion Of loans connected with land
speculation In the West. Eastern hanks
VIII undoubtedly be obliged 10 assist jn
lne autumn crop movement. and have
been preparing themselves accordineIv
As a result OF these monetary condi-
lions our bankers hive been forced TO
look to Europe for the financing OF
proposed new security issues While
money Is abundantly easv in both Ion
don and Paris, the placing Of American
securities has uDO-- eStlOnabiy been de-
layed by pronounced foreign distrust Of
the situation here on the other side
there has been growing feeling that
sharp liquidation must "a Ike place here.
and lower level for commodities as
well as securities be established before
european confidence in the United
states can be restored. Such HGuida-
ton Is now in progress. In fact has
alreadyrun to very considerable extent.
Wheat and cotton have shown marked
declines, and the tendency Is for still
lower prices Commodities generally are
declining. Unsatisfactory as this may
be to those operating for the rise. the
country VIII ultimately be benefited. and
the cost Of living viii decline Both
wheat and cotton will go outward more
freely and save 10 from the alternative
Of a further depie ton in our gold sup
ply. The situation has already been
materially relieved by this unpleasant
but curative process.
The Outlook.
The outlook for the market is exceed
ingIy uncertain. Political conditions are
unfavorable, and the country is threat
ened with a growing anti-railroad and
anti-tarin agitation for some time to
come. Political leaders are awaiting the
return Of Mr. Roosevelt Financial lead
ers may GO likewise. While there IS no
question that the general situation is
being improved by liquidation and Sc
cUrity values have already partially dis
counted the adverse conditions above re-
fered TO. the purchases Of stocks, ex-
cept on breaks, cannot be safely recon-
mended until conditions become more
settled. In view Of the Oyersold condi-
ton of the market there viii doubtless
be sharp and liberal rallies, but we still
continue to suggest profit taking upon
any pronounced recovery No perma-
nent turn for the better can be expect
ed until Improvement in both the pOlitf-
cal and monetary situations is in SIGHT