The Washington herald., 1910-08-15

New York, Aug. H-Not until the last
Of the year, If even then. will the rail-
road managers know certainly whether
or not they are TO be permitted TO in
crease freight rates. Not until next
spring will the United States Supreme
Court in deciding the American Tobacco
and Standard Oil cases, give precise in
formation as TO what business IS or IS
not conducted illegally in restraint Of
trade. Not until the next Presidential
election. perhaps. VIII It be known
whether or not the current agitation for
tariff revision imports a drastic reduc-
ton in schedules.
Meanwhile. the business Of the country,
however retarded by any one or all Of
these doubtful quantities. is going to be
conducted and the markets FOR securities
are going 70 be open. They cannot sus-
pend pending adjudication Of any ques-
lions. however weighty. and in the con
siderable interval between the present
and the long-deferred time Of decision
they may be guided by other considera-
tons. Already managers OF big and lit
tie corporate enterprises and capitalists
accustomed TO be heavily interested in
stocks and bonds have pondered prob
lens OF the remote future until these
problems have lost many Of their terrors
and there has come forward considera-
ton of events in the more immediate
future 70 formulate opinions on the
course Of business and the trend OF
security prices
The Sherman act. the railroad rate
cases, and the tariff are by no means
forgotten, and will certainly be effective
on the development Of business and the
prices Of securities in the remote future.
They will tend. as in recent months. to
restrict the volume Of general business
and TO prevent many people from invest
ing in securities.
Railroad Outlook Uncertain.
The outlook in the railroad business is
not as clear as In agriculture. Four Of
the big railroad systems last week pub
lished complete earnings for the fiscal
year ended June 80 and showed surpris-
ing results
In the course Of the week. moreover.
encouraging deductions drawn from these
statements were modified by a number OF
statements OF earnings for the month Of
June from other systems. All OF these
showed substantial increases in gross
earnings, but decreases in net earnings
except in the cases such as Rock Island.
ST Paul, and Missouri Pacific where the
managers had made drastic economies
as an Offset 20 the higher cost OF labor
and materials. These monthly statements
OF gross and net earnings were in turn
supplemented by computations for gross
earnings for July.
These showed an increase Of 2 per cent
over July last year, whereas the same
roads In June showed an increase OF Is
per cent and in May an increase Of Il
per cent over the corresponding months
OF last year. A reacuonary tendency is |
thus displayed in the aggregate volume
Of business. but idle cars have greatly
decreased in number this month as a re-
suit OF the early and free movement OF
the crops, and the assurance Of average
railroad tonEae- IN the latter part Of the
year. The returns from various roads
differ widely and are confusing but there
seems on the whole little doubt that the
railroads. by effectlng such economies IS
some OF them have long since put I'm
force. can conserve earnings to the salts
faction Of stockholders over the period
OF business reaction and the period of
waiting on the applications for higher
rates.
New York Bank Showing.
The New York banks increased surplus
reserves by 100000 last week. and now
have a surplus Of $56,oO0,O00 above the
legal reserve requirement. The amount
is nearly equal TO the urwieldy reserve
in the corresponding week Of 1905. when
business was dull and money a drug on
the market
Money continues In active demand for
business purposes and the banks have
begun TO reduce rates on time funds and
to lend more freely on mercantile paper
and on time loans secured by stock ex-
change collateral
Bankers still advise caution in new en-
terprises and still refuse to put out
money for business projects Of a specula-
tive character. but the needs of proper
business are abundantly supplied, and
there is nowhere an apprehension that
even with an increase in stock market
activity there would be any dearth OF
money for the movement OF the crops. ]
Unless entirely unexpected demands are