Arizona republican., 1912-05-23
LIVING COST
 REACHES APEX
Rene Bache, in Review of Trade Conditions, Quotes From Bradstreet's Per tinent Facts on This Sub ject
Especial Correspondence).


 Vival is that wages of labor. which
 have never been liquidated since the
 panic, are, instead of being reduced,
 now being raised whenever pressure
 enough on the part of the labor peO-
 Ple can be brought to bear to ef-
 feet this It is pointed out that in
 the past. real revival has not ma
 terialized without wage reduction. The
 situation, however, at this time, is
 abnormal in another, probably off
 setting respect, in that prices of com
 mOdities. instead of being substan-
 tially reduced, had only small de
 cline and have been for a year or
 more intermittenty rising. Brad
 streets tables show that the cost of
 living has risen 4 per cent in two
 months, 10 per cent in a year. and
 is now at it's highest figure. The
 factor is an impelling pressure against
 anything like wage reductions and is,
 in fact, the cause of unrest and dis
 content. which has brought about the
 series of strikes and labor troubles,
 and these it is indicated will run
 their course through many depart
 mentS of industry.
 We depend so much upon the pros perty of the railroads that the large
 cause of our troubles may be traced
 to the fact that the natural course
 of events in the railroad business was harshly interrupted Sy the injunction in May, 1910, fOrbidding the railroads to avail themselves of the only natural recompense against the raise in rail- road wages. This had a widespread depressing effect and started business downward on q long decline to which other causes contributed; added bur dens, as is always the case, acceler ating the motion when things are go- ing down hill The vital cause must | be removed and railroads must be al lowed to advance their rates in order to restore the equilibrium.
 The railroad rate question, like all our great questions of public policy and economy is unfortunately in the arena Of politics. The most thorough. l unprejudiced and able investigation of the question Of relative reailroad | earnings was made by the HadIey commission and it's report should have | had the greatest weight, but thus far l it appears to have been treated with l indifference by the Interstate Com merce commission. The conclusions l of this report were in effect that | railroads should be allowed tO earn l such generous returns as would at | tract the funds of investors liberally, l elese such funds would be frightened l away and railroad progress halted l High wages, or at least increased 1 wages and increased cost of material l reduced the net earnings of railroads
 last year to $1S2 per mile less than | the year before and to $303 per mile l less than the year before that. This. notwithstanding that for two years the roads have been applying earnest efforts toward reduction of 1 expenses in every direction. The roads are now met with further demands 1 of increase in wages. Unless relief is furnished by permission to raise rates, the margin of earnings so nee 1 essary, for maintained dividends and l to attract investors. will dWindle still l further.
 The enforced economies have been 1 beneficial in a way, in that they have
 taught the roads increased efficiency. l They have, however, induced extreme 1 conservatism as to extensions and | equipment, thus cutting away that 1 liberal volume of judicious expendi | ture so necessary to quicken the
 channels of all business.
 l If the stock list ignores the heated character of the presidential nOmina | ton race, so too and in more steady 1 and solid fashion does the movement 1 of trade.
 i Here is a great wheel propelled by l mighty economic power. moving re- sistessly onward. and no more cog
 nizant of human individual political 1 activity than a blowing gale is of a l field full of prancing horses.
 In the iron and steel trade, barom 1 eter of all other industries we find 1 each week a record of advance. The | trade journals tell us this week that 1 there is no sign of halting in the present upward movement; that over | crowded manufacturers are demand l ing longer periods for delivery and steadily getting behind on deliveries already contracted for. The long de l layed demand from railroads is be- ginning to loom up in evidence and competent and conservative captains | in the industry are looking for a year of record production. Rail or ders continue and car companies with new business slowing a little have orders ahead, nevertheless, as far as September. The price tendency is up ward and advances were made this week in bars and plates. Offerings of premiums for prompt delivery is one of the signs of prosperity. which | has made it's appearance for the first time in this movement. The dividend | for the year on Steel Common seems | to be assured. In pig iron orders | there is a little Hull. but the encOur- aging situation in iron is that yard stocks are low. Tn the 1906 boom. yards were loaded up and still the production went on increasing and
 new furnaces were being constantly l planned and erected
 When people say that the stock market is irregular they mean that | there is no general trend. It is like l the swinging of waves in the ocean. | There is small swing upward of a number of stocks. then all these swing
 down again. On the way down