The Washington times., 1910-07-03
By JOHN GRANT DATFR.

main unchanged anE undetermined as
Post mortems on stock market move
ments are never very profitable affairs
yet on the present occasion Wall Streets
curiosity aS TO what actually happened
during the week, IS excuse ole. for the
Gus Fer instance, the decline was un-
accompanied by any furry IN the money
market there was nothing that indicated
a heavy calling OF loans and Il was un-
attended by any seriously disturbing
ruuOrSr such as almost without eXCsp-
ton accompany O. violent break iva
sign q satisfactory explanation Tor The
decline was. 20 many. most disturb
inE feature, and, despite the theory most
generally accepted now, that some i'm
p0rtant pools closed out their holdings.
the elements Of mystery which stiI cling
TO the transaction initiate somewhat
against recovery However, one thing
stands out very plainly. and that IS that
some very important liquidation has
taken place, which has brought high
grade issues To q level where discTim-
iuarInE purchases can he made There
are StrU uncertainties in the future, and
these 60 not make extensive speculative
oHt ratloDs or borrowed money wholly
attractive, but tife present level OF prices
discounts very much bad news. even
some dividend reductions. and the man
who can look beyond temporary disturb
ance, and who can buy for cash. IS not
likely 70 see high grade issues 90 very
much further against him
Railway Rate Reductions.
In view Of the disturbed condition OF
VIII Streets mind it IS not surprising
that the action Of tine Interstate Com
mercc Commission. IN ordering reduc-
tons in the iutermountain rate cases,
should have excited a depressing iullu-
euCe- Tn the Neya Ia and Spokane
eases, however. where the commission
puts the rae reductions 10 a three
months test Jo determine the emects OF
the reduced tariffs. IL Is wholly likely
that too uucr significance was attached
TO the commission action As 7 have
already stated u connection with the
tremendous power now vested IN the
interstate Commerce Commission in the
Mo Ter n rate making. II Is not a Spe-
cite reduction in rates here. or an ad-
vance Of rates elsewhere. that gives
railway managers and bankers such
deep concern, bat the fact that pTac-
tIrlllE the whole rate ma sing function
has been transferred from the corpora
ton % an app0-UrIVe comm lSSIJn- This
may not be q bad thing iu The end. Tor
the railways or rOr the shippers. or for
the ultimate consumer OF for the inter
Tor towns and cities which have felt
themselves unfairly treated and dis
eliminated against bv the corporations
but g. Is almost evolutionary IN It's
bread application, and 90 IS going 20
take long slime for cooperation man
ayers IaI<=ES- ana investors. 10 1C-
custom themselves % the innovation and
test she workings OF the new legisla-
ton
At present there are upward Of c41.'11
miles or railway reporting 90 the COM
TuerCe commission The matter o. de-
terDiuIuE their rates. question vital
90 their existence, iSaa very delicate
matter. presenting many complex UlOb-
lens and throwing an immense amount
Of work upon the board That the COM
mission has attempted 20 adjust tho
Nevada rates on "a basis Of fairness no
one can doubt. and It IS an eUcOuraE
ing Sien- IN effect. the recent order
CIts away the difference by which rates
20 inland Western cities exceed west
L--uud rates TO the coast. doing this
By reducing the former rates Through
rates westward 20 iu-ermountaiu points
have usually been made by adding 20
the rate. from tho point Of origin 70
The Pacific coast the rate from Ehe
coast back 90 the iUfeT7U0gEurgin point.
The commission does not ignore the
principle that water competition forces
q lower rate 20 the coast cities than
tn the nearer interior cities. but it has
found that The interior rates are U0-
reasonable III themselves That this
may develop into a very serious mat
ter for the railways. from the point Of
view Of revenue. cannot be questioned
II proves quite conclEsivelv that the
confident assertion Of the railways. that