The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-06-05
Injunction Heightened by Bear Pressure Cotton o.
RATE INJUNCTION OVERSHADOWS
ALL OTHER MARKET INFLUENCES
Financial CrcsNothern
Have Been Warning Railroads Favorable Happenings Lost
Sight of il the Gloom
Publicahons.)
BY JOHN GRANT DATER
Especial Financial Represent ative Munsey Pubcatons)

on the part OF railways in establish
ing rates 1t may be a very foolish
law, and in its application 70 railway
companies an Unjust law, but there II
stands. Possibly, as is suggested IN
still another quarter. the railways.
seeing no hope of relief in the matter
OF pooling agreements in the railway
bill pending in Congress, thought IL
advisable 20 make test OF the whole
matter at this time, hoping thereby
10 change an intolerable situation.
Their Day In Court Will Come.
The railways viii have their day in
court When il comes TO the real test.
the question Of the reasonabIeness or
the unreasonableness Of the rates estab-
lished by them will be considered. Pos
sibly the railroads have gone too far
in their campaign to educate the public
in favor OF higher rates, in depicting the
dire results. including bankruptcies.
which would follow If rates were not
advanced. for 1t is doubtful IL the solv-
ency Of any important road is involved
in the matter; but, on the other hand,
tbe railways have been forced TO raise
the wages Of their train hands and
other employees, and this will cost them
upward Of 500 10000 ore annually,
and II IS quite evident that the increased
cost OF operation is seriously reducing
gross earnings. leaving little for net
earnings. and that the present rate II
dividends is not assured unless u G
companies can obtain more for the sery-
ices they render
The theory apparently held in many
quarters that all commodities and Serv-
ices that enter into the operations Of the
railways may advance in price. yet that
these great arteries Of industry may
not cover the cost Of these increases BY
advancing their freight and passenger
= g mn Hr.-r
who have lodged the complaints against
the railways are compelled 10 pay more
for their merchandise they simply cover
the increased cost by advancing their
Selilng prices. ana common justice de-
ways.
II is the chief industry Of the country
which Is involved IN the present con
tLoEersy' and the spirit OF opposition 10
their rate advances, so strfkingly mani
tested in the Injunction proceedirgs-
DDS tair 10 develop all along the line,
though IN the case Of the other railways
which filed separate schedules the
course or procedure 70 determine the
reasona bleness and the Justice OF the
advances viii progress in more orderly
ana less disturbing fashion than thar
OF wriJs OF injunction.
Until the outcome OF the controversy
can be determined. OF course rigid econ
omy will be forced upon the railways
mere has already been an extensive
cancellation OF equipment orders and re-
ports OF laying of men. Certain de.-Ai-
opment work will be abandoned: fur. her
sales OF American railway bonds to
Europe are unlikely: and then there Is
the shock 10 confidence which over
shadows everything. Cash purchases OF
securities Will proceed Of course, but
with so many disturbing elements in the
situation, business men viii proceed
cautiously, ami il is impossible 10 avoid
me conclusion that the incident VIII
somewhat accantuate the seasonal re-
arfIon in hrIeinasr