Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-03-12
Failure Of Proposed Boost in Freight.
Rates is Not Fatal.
GOOD LIKELY TO COME OF II
Need for Close Management 20 Effect
Economics Expected Co Develop
systems of saving in
Many Directions.
nY PREsroN Z. adams

enemy OF American capital during recent
years has been hoNUi. public sentiment;
the uncOmpromisjng slauu taken by the
Interstate Commerce commission should
and probably will disarm criticism that the
railroad can levy unreasonable charges
upon the people such a conquest Is worth
more to the corporations than any sum
that could have been derived from the
proposed Increase in freight rates. II the
ruling also has the effect OF checking the
aggressiNeness OF state commiss ons. now
that the federal body has taken effective
action, another great good will have been
accomplished. The economic readjustment
which has been in progress for twelve
months will be accelerated. whereas thS-
granting Of higher charges would have
| tended to perpetuate the vicious circle OF
rising prCes-did not labor leaders plead
for the proposed advances on the ground
that thereafter wages might be again
raised? This has been checked.
Extravaganza Not Unknown.
oopulence begetu extrayagance; necessity
stimulates economy. American railroad
! companies have been lavish in their ex-
penditures upon what might be called the
ornamental as witness the erection OF
Vertable palaces as stations in the larger
cities. II the public refuses to provide the
money for such projects. then there will
be lull in improvements OF this kind un-
| til conditions again change for the better
and conditions In "A young and progressive
country are Tar more likely to recover
! than to retrosrade.
! Low freight rates viii encourage traffic,
whereas high rates would discourage Il, q
fact that was very clearly understood and.
acted upon when debating was I'm vogue.
| The railroads were actuated to some ex-
| tent in their move to secure increased
/ rates by agitation for decreases, this agl-
| tation has been quashed
So the outlook may not be so black after
ALL The public having consistently refused
during the last three years to play with
] Wall street under the old rules-lO-point
| margins easily wiped out-new and safer
| rules have been drawn up, with every
promise of success Instead OF being a
! rank Spectator, he was under the mar
ginal method, the buyer can now claim to
! bc an investor, once he pays his first
installment Of $50 per share he and not
| the broker commands the destiny OF the
! stock; that is to say, the buyer alone can
! give an order to sell II.
Buying stock on Payments.
| OF course, the monthly payments have
to be met regularly. as in the case OF
other purchases by installment. but the
| buyer knows the extent Of his liability,
| whereas under the od-fashioned margin
| he never knew where he might stand. The
| investor under the new system should be
! extremely careful in selecting a broker
and should also have hard and fast
| agreement as to what would happen were
| the market to collapse just after the first
| 20 points were paid.
Since January ], 1907, the total output
Of new securities by railroad and indus
! trial corporations in the United States has
reached ST. O44,SSO. OF this total S1,O8S,-
! 7lG,S02 has consisted of short-term notes.
! This is equivalent to IFS per cent.
The railroads were responsible for $685.
| SOOOO2 of the notes, the balance Of S2O4,-
| 9l6S00 having been contributed by indus
trial and miscellaneous companies.
The largest percentage OF notes was
reached in 1907 namely almost one-fourth
of the total capital foated. In the fol-
| lowing year the proportion Just exceeded
! q per cent. Then there was drop In 1919
to little more than per cent, there having
beeen plenty Of cheap money and un-
bounded confidence in a return of prosper
ity throughout the country. short term
on a fairly large scale, the ratio being IS
| per cent. During the current year, that
I IS to say, from January l to February p,
! the note issues have been equivalent to "a
per cent of the total capital distributed.
The railroads have utilized notes much
more freely than the Industrial companies
out somewhat less than one-fifth OF the
grand aggregate of 1888 7l6,S02.
Heavy Cotton Exports.
There have been about 625OOOO bales OF
more than at the same time last year,
! This cotton is not piled M st the ports,
on the other side. While It is true that
! the stock of American cotton in Liverpool
| IS $4,000 bales largl than It was at this
time year ago. The foreigners are still
difference between the exports OF this year
and last will probably be greater than Il
is today. The foreigners have not bought
| cotton to hold-not at 10 cents a pound.
They have bought heavily only because
they needed the cotton.
Never I'm the history Of the world have
there been as many splndles In operation
| in England as there have been during the
last six mon his The many new mills are
all running and so are the old ones. They
viii need more American cotton before
they can get a new crop unless there Is
some radical change in conditions.
| It begins to look as II there was not
going to be as much cotton left for do
nestle mills as there was last year. for in
! spite OF the free movement, the south is
no longer full Of cotton, as the character
of the cotton now moving plainly shows
The outlook for the rest Of this year Is
fully as good as it was at this time year
rave great deal Of cotton to buy.
OversupDIies of Grain.
Grain traders say that they have, not In
years seen a situation In which bearish
! pletely as they have done under present
conditions. The markets throughout the
! supplies. The theoretical requirements Of
! Europe are 100000 bushels a week which
estimate is based upon the experience OF
| several years, with proper allowance for
natural increase. only during one week
| of the present crop season have the ship
ments from exporting countries To the Inn
porting countries fallen below this figure,
/ and on occasion even reached the epor-
nous total Of 1900 O0O bushels.
| The export situation Is one Of which all
! exporting countries are showing deeP con-
Germ. II is barely possible that the United
! States NAV participate TO some slight eX-
! tent because u what amounts 10 the prac-
teal Generalization Of wheat prices
| throughout the world Russia has enor-
nous supplies Of wheat not only from the
I current crop but left over from the pre-
/ cadIng one which Il Ia DESTROYS Of mar
I ketlng because II cannot consume them at
home For the greater part OF the present
| crop year II has undersold other countries
/ IN an effort 10 dispose Of this surplus and
has set a price for all countries except
! the United states. Argentina which
| should he the LARGEST shipper at this sea-
| son Of the year. has fallen beh'n Its eX-
ports for tho CorTesp' ndinE period OF a
I because Of the heavy ghiDmgWta
/ Of Russia. and alao because the importing
countries have filled M their reserves and
| are well supplied ahead for consuming re-
! qurements
Kansas city Grain aud Provisions.
KANSAS CITY, March ll-WHHAT-
May S74C, sellers; July, Slsc, sellers; cash
unchanged TO 1ac higher, No. hard, 6W
sc; No. 3. s5m94c. No. 2 red. yina0C. No.