Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1911-03-07
TWO ELEMENTS
or UNCERTAINTY.
HENRY cLEws REFERS TO COURT
DECISIONS AND EXTRA b
SESSION AGITATION.

greSS, says Henry Crews ~ nAo L.
market letter. General impression IL
| that the supreme court will declde au'
yersely in the oil and tobacco cases, put
may suggest way out OF emDarrass'
ment to the offending corporations. y
the decision proves adverse there VIII
| undoubtedly be much disappointment
and disgust among corporation man
ayers, because large number or con-
| Germs may be obliged to reorganlze.
This decision will affect nearly l,2OO
! holding concerns having about S.Voo
subsidiaries and including about $lO,-
OO0. 900 900 OF capital Like the rail
road managers they will be Obliged
to meet the law, and the more grace.
fully :nat is done the better for all
concerned. Nevertheless, guessing as
to supreme court decisions is especial
ly hazardous, particularly in view OF
the popular miscalculation Of the rail
road rate decision. 1t will be remem-
bered that a compromise was general
" expected, whereas nothing OF the
sort occurred.
The reciprocity question will unfor'
tunately reopen the tariff controversy
at 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 any
radical tariff revision during the extra
session. 1t is quite possible, however,
that considerable tariff agitation may
be aroused IL only for political effect,
especially as the time is drawing near
for another presidential campaign. For
this very reason, however, there is lit
tie prospect of any important changes
being made in present schedules. The
tariff Is altogether too full of excellent
political ammunition to permit OF .
prompt adjustment, and as 1t will be
the best material for the forthcoming
campaign there is little reason to fear
very decisive action in any extra SEES
sion. Still, tariff agitation Is 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 attack
ing the wool, cotton and steel sched-
ules But, as already said, radical
changes are not probable, at least, un-
til after another presidential election.
Time has been given for the finan-
cial community to recover Its equili-
brium after the shock of the decision
OF the interstate commerce commits
sion. Only railrcNl managers showed
any serious perturbation. Our great
bankers entirely ignored this factor in
the placing of their new fOtat1ons,
thus proving that they did not regard
the decision as in any degree affect
ing the credits of the railroads. The
truth Is the railroads failed to prove
their case, and no injustice was done
them by the commission; since, ii
present conditions are proved to be I'M.
workable, they will have full opportun-
ity for rehearing after further trial
of present rates. Many Of the railroads
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
seem likely to 60 on as U.s.
ual with projected improvements.
Some of the weaker lines are already
beginning to economic and defer i'm
proven ents. The effect of the decision
was certainly disappointing to man
ayers and also to concerns which fur
nish the railroads supplies. but there
Is no doubt whatever that the decision
Of the commission will ultimately ex-
ert wholesome and necessary re-
straint upon recent business ten
lencies. Had the railroads succeeded
in making their advances, increased
demands from labor would have fol-
lowed, wholesalers and retailers would
nave been obliged to charge higher
prices to meet increased freight bills,
and the whole effect would have been
10 still further elevate prices and in
crease the cost, Of living. In other
words, we would simply be continuing
the ridiculous process of lifting our
selves by means Of our boot straps; q
tendency that has much to do with re.
cent arrangement and came near
creating serious crisis by placing
the United States upon level danger
ously higher than foreign countries.
Of late the tendency has been for a
reduced cost of living. Food products
have especially declined and many
other commodities, notably iron and |
steel, have been on4the downward
lropped from 9.23 In January, 1910, to
'.07 in February. 1911. This declin-
ng tendency seems likely to continue,
owing to quiet trade and restraints
lpon speculation. But had railroad
.ates been increased q movement in
he other direction might have been
for we would certainly have
had a temporary period Of increased
activity which, however, would have
proved more in the nature of an in
oxicant than genuine recovery.