The Washington times., 1911-02-26
OF THE, RATE DECISION
WAS GENERALLY OVERESTIMATED
Railroads. With Increase Earnings Nearly
Favorable Developments That Work the Betement
of Condions-The Overnight Break Unique
DATER,
Of Publications

, are either men who have been having
Trouble with labor or who subscribe TO
the theory that to effect complete
cure of the present situation De coun-
try must carry the process of show ad-
justment further than it has yet pro-
gressed. An advance in freight rates,
they believe, might result in over
stimulating industry like the Sun
shine movement" in 1903, and, in the
end, check the normal readjustment
which is in progress. Denied the prlVi-
lege of advancing. rates they belleVe
that tine railways will have to proceed
with their purchases of material ana
supplies on q very conservative basis,
and though they admit that this Is
likely To defer Industrial recovery, they
believe that ii will establish better
basis for that recovery in the end.
Although the decision in the freight
rat. cases did not come until after
business hOurs on Thursday it practical
~ oVcrshadOwed the entire session OF
the week. and the volume OF business
was very much reduced. The predomi-
nauce of this single event also has been
much to obscure other and very IN
pOrtant developments. AS for instance,
the highly important announcement OF
the completion of the sale of $4,000 GGJ
Central PaCitic'4 per cent thirty-hNe-
year debentUre bonds to Paris. This Is
the Issue previously lGicIltu " IS q
Southern Pacific loan which met with a
technical denial or its first announce
u!rnt, although the Central Pacific is a
subordinate property of the southern
Pacific. which guarantees the issue.
General Industry Better.
4 large sale of bonds abroad is always
helpful matter, and, upon this in
stance, it is more than ever important
in indicating a foreign market for Sc
curities despite the disturbances i'll the
home market. Official announcement
was also made that the freISht rate de-
! ciSions would make nc change in tho
SIi,00O,OOr Erie short term note nesotia'
/ tinn, and the sale Of so COCO Rock Isl
, and bonds, nor is it thought possible
| that it will in any wise affect the im
| pending negotiations of the S}0,0OG, 0G
! New York Central notes. In fact, bank
! ing interests assert that the decision Is
| wholly favorable to the investor and j!
| likely to aid the bond market.
| 1t is rather refreshing to turn from z
consideration Of the financial market tC
| the general Industrial situation, anC
| note that the leading trade authOTite!
| assert that every important commercial
| development of the week has been ia
| vOrlhlo and confirms and strengthens
| tho recent growth in business conf
/ =. W
while still conservative IN their opera
ttons-1nd are likely to cOntinu" so-ar'
! displaying greater activity. The eX
! pauding reserves IL banks. the recOV
| cry in iron and steel, and the easier
tendency Of commodity prices, have aid
| cd general sentiment and strengthened
! the fundamental position.
Money Rules Easy.
Morey conditions rule easy, and tbs
| disturbance in the stock market has
| had no effect on time or call rates
| Commercial paper, however, is moving
! with somewhat less freedom and ster
| ling exchange, despite the improving
! international trade situation continues
strong. The bank statement Of the day
was again a divivend preSentment, tho
! average report departing widely from
| the actual statement in the matter o.
loans and deposits. However. no one l.
| paying much attention TO the bank
Statement these days with a surplus re-
serve amounting to SfU.35s,O1O above IeGaI
| requirements. However. as of late
about one-half of this excess continues
! in one bank.