Evening star., 1912-11-24
Wealthy Railroads Happy.


Just at present there is sharp dis
elimination between the rich. strong rail-
roads and the poorer class. small
group of prosperous transportation sys-
TENS are making money and getting along
quite comfortably, while the poor and
overburdened systems are fighting for
their lives. How they are going to work
out is puzzle not only to the oppressed
railroads, but also to the trading public
in Wall street Increased cost of con-
ducting carrying business Is driving many
of the struggling lines to the verge OF
desperation and every day makes their
condition worse Bankruptcy vim be the
only escape for quite a number OF them
unless Congress comes to their rehef by
granting them the privilege of raising
rates The trouble is that when this is
done the rich roads will also profit SINH
larly, thereby breeding dissatisfaction on
the part of the shippers, who will look
upon the innovation as an unfair ana dn-
equal tax upon them. 1t is barely possi-
BILE that the arbitrators who have been
working for several months past on the
engineers strike problem may suggest
way out of the difficulty. That report
has been awaited with undisguised eager
ness not only by fhe railroad men, but by
financiers and Investors. TherDis fer
vent hope that the conclusions reached
by the arbitrators may be of actual value
in broad way as well as in the settle
ment of the particular disputes submit
ted for settlement.
Prospects of an early revision Of the
steel schedules has revived talk or q
consolidation of independent steel COM
panies. The determination of the Penn
sylvania railroad to get rid Of it's con-
troll of one or more of its big steel COM
panies Is the excuse offered for bringing
the matter up again. There are dozen
or more Independent companies that
might be embraced in any big consolida-
ton that might be formed. These in
cludc Bethlehem Steel. Lackawanna Steel,
Cambria, the Republic Iron and Steel,
Crucible. Jones & Laughlin. Pennsyl-
vania, Colorado Fuel and Iron, Sloss-
Sheffieid, Inland Steel. Pittsburgh Steel
and Youngstown Sheet Steel These
companies have a total share capitaliza-
ton OF $375 OOO.OO and a bonded fndebt-
edness Of $187 100000, a total share and
bond capitalization Of 1852 .OO0, 600. or only
a little more than one-third Of the, capi-
talization of the United States Steel Cor
Observation-Disclosures known as the steel
pacity is about 10OOO,OO tons. or two
thirds the capacity Of the trust" This
gives the independents substantial ad-
vantage In the matter of fixed charges
offsets the factor of cheaper production
by the trust" There are many reasons
why the big independents are working
for a grand consolidation of the minor
companies. 1t may De pulleQ OH. MT.
Frick and Mr.. Schwab are said to be
earnest advocates of the scheme
Target for Sharpshooters.
New Haven has again become a con-
spicuous target for the sharpshooters. 1t
has worked itself into most undesirable
position President Mellen has developed
a remarkable gift for making enemies.
All New England is up in arms against
by which he is attempting to bottle up
that section and fix q monopoly In trans
portation involving the peace and COM
fort of revenues of nearly 100000 peo-
ple. The charge is openly made by
critics that the Mellen management has
allowed the road to run down until travel
over 1t is unsafe. the main purpose being
seemingly the maintenance of the only
partly earned per cent dividends A
temporary loan of $40OOO,OOO through the
house of J. p. Morgan & Co. is regarded
as a desperate play to tide over a bad
financial emergency and 1t has not made
a hit in Wall street. There is great curies-
ity as to what price the New Haven road
had to pay for the money. 1t is reported
on good authority that New York Central
recently sold $8.50O,OOG of notes at around
92. New York Central credit Is higher
than New Haven. Mr.. Morgan always
has money for hard-pressed friends, but
he Ia not in business for his health. When
ANYBODY wants the particular line of
merchandise that he has for. sale he
makes them pay for 1t. He charged the
steel trust a commission of more than
SEQ OOO. 600 for his promotion and fiotation
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