The Washington herald., 1911-02-27

New York. Feb. 26-The decision ad-
verse to the railway companies in the
freight rate cases caused a commotion
and a violent decline in stocks-the sharp
est, indeed, in point Of intensity, that
has been seen in many years, but chiefly,
as seemed, not because of the character
of the news itself. but because it was
universally unexpected. The idea enter
| tanned by pretty nearly everybody was
that some advance in railway rates would
be granted. even il this might vary con-
siderably in certain sections, and might
not be great in any section.
Wall street, therefore, passed into a
state of momentary hysteria, as it often
does, and sold stocks for a little time
without regard for their value, and heed
less of the suggestions of ordinary COM
mon sense. When the excitement was
over 1t was found that what the Inter-
state Commerce Commission had already
decided was this: That the evidence pre-
sented by the railway companies and the
general status of railway business as de-
veloped since the time a year ago when
the applications for an advance in freight
rates were made was not sufficient TO
Justify the commission in approving a
| up Ol lTGlBnl EdlcS ONCI the
Whoie country east of the Missouri river.
NOW there are two ways of looking at a
ueclslon OF this sort. One is that the de-
cislon' regarded from a strictly technical
| ana so-caIed legal poin: of view, was
only what could have been expected.
Progress VIII BE Hampered.
On the other hand, a fair ground for
criticism of the Interstate Commerce
Commissions judgment seems to be that
II the railway people were too general
and not precise enough in their state
ments and arguments made before the
commission. the commission, in its view
of the case, followed lines of thought too
precise and too narrow. The genera
proposition is to be upheld that the rail.
way development of the country ough
to proceed, and that IL the people ar
to be encouraged to put their money int
railway properties, the policy of the coun
try must be to treat the railway com
panies not only with justice, but witt
liberality.
Men who expect to make 10 per cen
upon their money when invested in ordi
nary business enterprises will not be in
clined to put their money in railway en-
terprises when these return a net yielC
of but per cent, and less than that il
hard times. The country does not exis
wholly for the farmers and shippers. Th
railroad business is the largest business
| in il, and next to that of agriculture
IL the latter can be considered a bushes:
at all. A policy OF regulation OF railways
has Unquestionably come TO stay with US
ana ii is a good thing that this is so
but If this policy of regulation is no
to be conducted in such a broad ant
generous way as in the other great coun
tries where railway regulation prevails
such as in England and Germany, tn
country will suffer from II.
Probably Wall street would be in
somewhat more cheerful frame of mint
than IL is now IL il were known tha
there was no possibility OF an extra ses
sion OF Congress this spring. In genera
the financial community appears to b
in favor OF the reciprocity treaty tina
has been negotiated in a preliminary wa!
with Canada. The feeling is or seem
10 be that as Canada is a nation on tn
same soil as our own there will be
mutual advantage in an interchange o
products comparatively free from tarif
restrictions.
Fear n General Revision.
If discussion over this matter we're T.
lead to a general revision OF the tariff
in the month Immediately at hand, NJ
doubt business would be unfavorably af
fected to some extent. But as yet ther
are no signs that any such thing will
happen. The utmost that is proposed b!
any one is that at an extra session o
Congress, II one should be called al
effort should be made to reduce tn,
duties upon certain commodities that nov
receive, as Is declared, an altogether alb
normal and improper degree of. protec
ton. Neither political party is anxious
for a general tariff overhauling.
Aside from this matter, the who'll
movement OF business and industry is up
ward and with increasing force. TIL,
decline in commodity prices is making
great strides, and almost daily one arti
Gle of staple production after anothe
is added to the list of those in which ;
ltopheavy rise has tumbled down Flou
and coffee have been the last to feel thi
impulse, and it is now open to no disput
whatever that the cost of living in tn,
country is less than It was at the end o
February, 1910.
The winter wheat crop is in exceIlen
shape, heavy rains having fallen through
the Southwest, where the crop prospec
was diminished, as was said. by a spel
Of dry weather. The farmers, too. ar,
entering the season with heavy stocks o
grain on hand, and there is every in
ldication that present prices for wheat
which are amply remunerative to tn,
agriculturists, will not go MATERIAL,
higher for a long time to come. Butter
eggs, and other commodities whose pric'
is dependent to a greater or less exten
upon the price of corn continued to faIl
In all general mercantile lines. bette
feeling is shown. and attention mus
again be called to the vast undertaking
in which capital is now engaging itsel
in gthe extension, improvement, and il
some cases the entire rehabilitation o
certain railway lines.
EXPORTS SHOW BIG INCREASE