The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-09-18
By JOHN GRANT DATER.

commercial activity. indicated in the re-
dUctiOu Of the amount Of untitled orders
on hand, reported by the United States
Steel Corporation, was supplemented
during the week by trade reports Of
price concessions IN steel plates. and
some other products Of iron and steel
but that the situation in the iron and
steel industry is viewed with equanim-
ity by the officials Of the giant corpora
ton. is clearly indicated BY the views
expressed by Judge Ebert II Gary, its
chairman, on his arrival here from Paris
on Thursday. Said Judge Gary.
The steel business Is naturally
duh at this time. but nIanUfac-
turers Of iron and steel have no
reason u complain For six
months prior 10 March I we were
booking orders FOR more than 50
per cent in excess OF capacity
each month II is natural that
business should eventually fan
OF We arc working OF that sJ.E-
Plus business now. We have at
the present time orders on our
books sufficient To keep US going
three and half 10 four months
50 that n we only book Oue-half
the capacity each day IL viii be
long tina before we have cause
10 complain. I believe that the
last siE months Of the year viii
De fully as good as the first six
months were
ITO my mind the outlook for
business N this country IS ex-
ceedfngly good, and what I have
seen and heard while abroad has
n no way changed the favorable
opinions ] expressed on the eve of
my departure There viii be no
let Up. no disturbance in indus
trial conditions IN America unless
y IS the result Of political agfta-
ton We need more stability"
General Business and Railway Rates.
cal agitation seems TO have straug-
ler's hold on the country's industry.
The authorities on general business. rhe
commercial agencies. which always take
the optimistic view, report in their is
sues for the present week that buyers
everywhere and in practically All lines
are disposed at present 10 limit their
purchases 20 immediate requirements
and Il is noted that bank clearances for
the hrst half Of September have not
been as low as the present since 1913
During the current week they contracted
~ per cent FOR the entire country.
But the immediate requirements Of the
country alone constitute a large volume
OF business. and this augmented AZ the
present time By the action OF the West
ern and Southern bankers. in forcing
grain and cotton 10 distFi putiug markets
is resulting IN well sustained Eross rail-
way earnings
IN fact. despite Iessered. general com
fncrcial activity. gross railway earnings
StlI show gains in their COMPARISONS
Eith last year. though. OF course. the
heavy Increases in operating c,,S+ are
reducing net returns ever-VsF1ere
Though Wall street hopes that this ad-
verse tendency may be overcome by
freight rate advances later on. IL can
not be denied that the financial district
was much disappointed during the week
over the presentation OF the railway
case 10 the Interstate Commerce Com
mission.
The carriers have not as vet comDieted
their case, and as they are the persons
most deeply concerned in the question
II must be assumed that they know what
they are about So far as the case has
gone however, ft has been criticised as
wanting in frdnkness This irnDressicr
i Is 10 be hoped, viii be removed in the
later hearings. for Il aDDearS clear n
the lay mind that the railways have q
very strong case based r1uon rba in
creased cost Of materials and the heavy
advances In wages that ha re been fore
eu upon them, and Il seems as though
TINS could be presented IN a thoroughly
convincing manner
IN some cases. for instance the esfE-
mates Of increased receipts through the
increased rates. have been figured ont ,
Such insignificant amounts as 10 create
the idea that they are underStata7 for
the sums are not suffcfenfIv Lac
either % cover the increased opera ting
cost, OF 10 justify all the agitation over
the question Incidentally IL may be
said that nothing thus far dfscIozaS
j5sstifiss the earlier assertions ~ ~
faliS avs that unless rates were advanc-
ed wholesale bankruptcies would ensUe
Deadlock Over Export Cotton.
After months Of fruitess negotiation
over the question of cotton bills Of lad
ing, the foreign and American bankers
are no nearer a solution Of the difficulty
than they were at the outset In other
words the London and continental
bankers during the week definitely re-
fused to accept the proposed plan for
validating cotton bills of iadiuE- ana
repeated their demand for bank guar
aHleeSs winch American banks decline
10 give, and which Il would be rrDlszz-f-11
for national banks TO grant under the
restrictions OF the national banking acr.
blame the foreign bankers for deSirins
TO protect themselves against anv r.
curTence OF the enormous losses incur
red last season, growing out OF the
Knight IanCey frauds, and II auy one
thinks the foreign bankers and rner-
chants pig-headed in not acceptfnr the
valuation scheme Off-hand. he has ONLY
10 recall that. although the losses = 70
acknowledged 10 range between IS ono 0fs3
and Sl0,o00,000. and that a large nunlber
or foreign firms were driven into bank
ruptcy thereby no one in this country
has been punished or imprisoned. or
even proceeded against. and the ralI-
wy, whose employees signed the fralfgIli-
lent bills Of ladiTsE, disclaim all resDfn-
sibility in the case
The whole performance is a thorough
" diSCreditable episode in America n
commercial history, and IL Is not to To-,
wondered at that the foreign bankers
are anxious to protect themselves
against any possible repetition OF the
frauds Actually it would seem "a
though thy were protected as we'll ae
one can be expected to be in ordinary
commercial transaction. through the
validity plan. Dy which in substance the
cotton carrying railways acknowledge
their responsibility heree fter for The
cotton covered by one OF their bills OF
lading, il RAILWAY agents DO not exceed
their authority. However, as the Saving
Is ''Cnce burns twice shy aud in con-
sequence the foreign bankers like q re-
SpOnsible bank guarantee in addition
As this cannot be given. the mater
must be worked out in some other wav.
As the foreign bankers have set a limit
OF October 81 before they put in opera
ton their rule ID reject American drafts
drawn against cotton shipments unless
the ladiug bills are guaranteed. there
is still time for an adjustment. II has
Of course, been a great assistance 10
this country in moving the cotton crop
to draw on Europe to the extent Of
$3.50 00o, coo or S300.GC0.0O0 annually. and