The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-03-06

extra session of Congress. Inc gen.
eral impression is that the Supreme
Court will decide adversely in the Oil
and Tobacco cases. but may suggest
way out of embarrassment to the
offending corporations. n the decis-
ion proves adverse there will undoubt-
eddy be much disappointment and dis
gust among corporation managers, be-
cause large number of concerns may
be obliged to reorganze. This decision
will affect nearly 200 holding con-
Germs having about 5000 subsidiaries
and including about $4,000, 100000 OF
capital. Like the railroad managers
they will be obliged TO meet the law.
and the more gracefully that is done
the better for all concerned. Never
theless, guessing as to Supreme Court
decisions is especially hazardous. par
ticularly in view of the popular mis-
calculation of the railroad rate decis-
ion. 1t will be remembered that
compromise was generally expected.
whereas nothing of the sort occurred.
The Reciprocity question will unfor-
tunately reopen the tariff controversy
at a time when business needs free
dom from political agitation. There
appears to be little doubt concerning
the passage of the Reciprocity meas
ure: and not much likelihood OF ans
radical tariff revision during the extra
session. 1t is quite possible. however,
that considerable tariff agitation may
be aroused if only for political effect,
especially as the time is drawing near
! for another Presidential campaign.
For this very reason, however, there
! is little prospect of any important
changes being made in present sched-
| ules. The tariff is altogether too full
of excellent political ammunition to
permit of prompt adjustment, and
as it will be the best material for the
| forthcoming campaign there is little
prospect of any important changes be-
| ing made in present schedules. The
tariff is altogether too full of excellent
political ammunition to permit of
prompt adjustment. and as it Will be
the best material for the forthcoming
campaign there is little reason to fear
very decisive action in any extra ses-
sion. Still. tariff agitation is a deter
rent and not stimulant to business
enterprise. There is more or less
talk of putting such articles on the
free list as vitality affect the cost of
living, and there is renewed talk of at
lacking the wool, cotton and stee!
schedules. But. as already said. radi-
! cal changes are not probable. at least
until after another Presidential cleo
ton.
Time has been given for the finan
cial community to recover its cquilib-
rum after shock of the decision of
the Interstate Commerce Commission.
Only railroad managers showed any
serious perturbation. Our great bank
crs entirely ignored this factor in the
placing OF their new flotations, thus
proving that they did not regard the
decision as in any degree affecting the
credit of the railroads. The truth is
the railroads failed to prove their
case, and no injustice was done them
by the Commission: since. if present
conditions are proved to be unworka-
Bile, they will have full opportunity
for rehearing after further trial of
. >>sNA1
are reporting liberal gross earnings.
and there Is little doubt but that by
means of economy they will be able
to continue satisfactory net results.
The stronger roads. which are in the
majority. seem likely to go on as us
ual with projected improvements.
! The effect Of the decision was certain
ly disappointing to managers and also
to concerns which furnish the rail
roads supplies. but there is no doubt
whatever that the decision of the Com
mission will ultimately exert whole
some and necessary restraint upon
recent business tendencies. Had the
railroads succeeded in making their
advances. increased demands from la
Dor would have followed, wholesalers
and retailers would have been
Obliged to charge higher prices to
meet increased freight bills. and the
whole effect would have been to still
! further elevate prices and increase the
cost of living. In other words. we
would simply be continuing the ridicu-
lous process of lifting ourselves by
means Of our boot straps: a tendency
that has much to do with recent de-
rangement and came near creating a
serious crisis by placing the United
States upon a level dangerously high
er than foreign countries. OF late the
tendency has been for a reduced cost
of living. Food products have espec-
tally declined and many other COM
modities, notably iron and steel, have
been on the downward grade. Brad
streets Index Figure dropped from
9:23 in January. 1910. to S.01 in Feb
ruary. 1911. This declining tendency
seems likely to continue, owing to
quiet trade and restraints upon specu-
lation. But had railroad rates been
increased movement in the other di-
rection might have been expected. for
We would certainly have had a tenn
/ porary period of increased activity
which. however. would have proved
more in the nature of an intoXicant
than a genuine recovery.
Market conditions are not entirely
satisfactory. There was good re-
covery from the slump following the
rate decision. but this was not we'll
maintained for reasons just mentioned
Railroad traffic shows no serious DIM
! mutton and managers are likely to
quickly get over their present dis
gruntlemeut. General business is oui.
oh Oh