The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1910-06-21
A BANKER's VIEW.

"A DAN !kAJH..lH p SA1.i"'
In his last circular Henry Clews of
New York discusses in an interesting
manner the railroad rates injunction
which was pending when he wrote, but
has since been, withdrawn by agree
ment of Taft and the railroad men.
The political situation is also discussed.
The following is from the circular:
New York, June 4, 1910.
A severe blow has been administered
to financial interests by the unexpected
Injunction against an advance in rail
road rates. Its first effect was TO startle
Wall Street and force demoralized sell
ing of stocks. What the final outcome
win be can not now be foreseen. 1t
means at any rate period of prolong-
ed discussion at Washington, together
with a general reopening of agitation
against the railroads. Out Of the strug-
gle so suddenly preeipitated there
should come some rational and perma.
nent solution of the railroad problem;
but unfortunately during the interval
a period of more or less unsettlement
in values must be expected. The pres
emit status of the railroads is unbear-
able, and some Judicial power is neces-
sary to settle the differences between
them and the people. Railroads are q
natural monopoly, and as such exercise
arbitrary powers which inevitably in
vite the distrust of shippers and should
be restrained. Railroad managers are
human. and, however broadminded and
liberal they may be, are likely in the
matter of rates to put on all the traffic
will bear, Shippers desire stable rates
good service and equality of treatment.
These advantages they generally re-
ceive, vet find themselves at the mercy
of the railroads in the question of rates.
The freight rate from the nature of
the case is not subject for bargain
ing-the usual method of settling bust
ness transactions-hen the alarm Of
shippers at the recent movement of the
roads to advance rates. Shippers be-
lieve the advance to be unnecessary
and express serious alarm at this exer-
else of arbitrary power free of restraint.
On the other hand the railroads find
themselves face to face with the prob
lem of securing sufficient revenue to
meet the increased demands Of labor
and rapidly growing expenses. There
seems TO be but one true solution OF
this antagonism in the relations be-
tween the railroads and the people;
that is the establishment of some court
or tribunal designed to arbitrate and
settle all such differences. If spch 0
court could be devised securing fair
treatment to The railroads and just and
reasonable rates TO shippers, a long
step would be taken in removing one
Of the most acute sources of financial
and political disquiet.
The railroads are evidently deter.
mined TO secure better rates and are
row filing notices OF advances In.
diyidually instead Of eolleetiyelyi but
aside from lhh tho general outlook
though somewhat mixed, Is In many re-,
speets favorable, Recognition Of over,
speculation In Western land has forced
general TeiTenehmeut by interior banksi
and the steady eunailment of credit
u gradually curing some Of the AnaR
eial NE from which that section 70 snf
fehnR, n r. recognised, however, that
the lniefiof bahks will not be able d
nnanea the crops % easily n usual
owing 10 eKpanslop Of loans connected