The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-02-27
A BUSINESS REVIEW OF THE
PAST WEEK BY HENRY CLEWS

New York. Feb. 27.-The decision OF
the Interstate Commerce Commission
was of course shock to both railroad
and financial interests. for it was con-
fidentially expected that some sort
of a compromise would be reached
granting the roads moderate concess-
ions in the East, where rates are low
and the companies have been placed
under enormously heavy expenses ow-
ing TO the increase in wages granted
in 1910. In all probability the decis-
ion will make it more difficult for the
railroads TO place the new issues which
they had contemplated. and this will
of course compel delay in improve
ments and mean less activity in con-
structive work of that class than an
| ticipated. But the decision has it's ad-
vantages. 1t will avert possible con-
gestion of the security markets by the
| flood of new issues which would GER
| tain.y have followed had the railroads
secured what they wanted. AS soon
as the shock is over calmer views will
prevail our railroad managers will
accept the situation philosophically;
efficiency will be the watchword: re-
trenchment viii be in order. and con-
sidering the excellent physical condi-
| ton of the roads a year Or two of
waiting for larger income from in
creased business will do no lasting
harm. Some of the weaker roads may
suffer from the decision: but it must
| be remembered that the Commission
| has announced its readiness to recon.
slider the question of advanced rates
if after fair trial experience shows
| that the roads were right in their
contention and really needed higher
rates to compensate for increased eX
penses. In business circles the deci
sion will be accepted with favor. since
shippers would have been obliged tC
put the increased charges upon the
public. which would ultimately pay
the bill and is already more or less
disturbed at the high cost of living
Considering the political situation. il
is worth something to avoid a further
cause Of public discomfort
The January investment demand APP
pears now to have subsidized and has
really proved much better than antici
pated. 1t expressed itself chiefly in q
demand for bonds of which large
supply of new issues has been success
fully placed. 1t must be remembered
however. that the past year has not
been very profitable one in business
and that investors have not been able
to increase the contents of theil
strong boxes with as much freedom
as usual; in other words, the countr,
as a whole has suffered diminished
savings owing to the reaction in bust
ness, although this may have beer
partly offset by the more economical
spirit which has recently developed
and by the fact that not a few divi
dends have been increased as resui
of previous prosperity. There ha:
been further profit taking during the
week because of the loss of bullisl
sentiment and because the absorbing
qualities of the market have beef
pretty severely tested by the numer
Gus new issues since January 1, ant
the fact that still further importan
issues will be put out as soon as con
ditions favor. Had it not been TO
the freedom with which foreign mar
kets took these offerings the latte
would have been much less success
full and our local market would IN
doubtedly have been congested by tn
pressure of new offerings. 1t must b.
considered exceptionally good FORUM
that Europe has taken these issue
so readily at time of reactionar.
Influences in the United States. l