Arizona republican., 1912-01-26
TStccid COycSbondcnccl

| in the financial district. There is a
 visible lessening of apprehension.
 There is no longer any fear about over extension of credit. over trading.
 over production or over-speculation. | In all of these respects there has been
 marked contraction and conservatism i for a long period. Not for many
 months has the general financial and | business situation been so sound and free of disorder as to-day. All along
 the line the policy has been go slow"
 The result has been highly beneficial.
 We are still going slow. and that fact | leaves traces of hesitation and fear among the naturally timid: also,
 among those who usually look upon surface conditions. There are now. however. no substantial causes for un- | certainty except those of a political
 nature. This is presidential year.
 and we have acquired the ,leadening habit of timidity at all such periods. | We are. it is true. in the midst of re construction of our tariff and anti trust laws and. though in neither of these directions is there we'll grounded | fear of damaging results, yet until
 tariff schedules are fixed and until our i big corporations clearly understand what legal requirements will be inn
 posed upon them there will inevitably be more or less doubting and waiting. Fortunately our trust problem i.s grad
 ually being worked out toward a SO lution. Public opinion does not insist that the great combinations he de StroNed. but only curbed It only re quircs that they shall be wisely re- strained. Sentiment for the creation of am interstate commerce commission
 for the purpose of regulating large corporations is steadily growing. Reg
 ulation by commission has proved sat
 iSiactory in tn case of the railroads.
 ana this offers a reasonable solution.
 based on experience for meeting the
 trust problem. In the case of hand
 ling industrial corporations the situa-
 tion is probably much more complex
 ard difficult to handle than thcat of
 the railroads, although the latter had
 their special problems. There is no
 doubt. however. that with intelligent
 and patient effort a solution will be
 reached. and thus far no more prac-
 tical proposal has been made than that
 of commission. The responsibilities
 of such body woubI be great, and it's
 administration would call for men of
 the highest atility and unquStionod in-
 tegrity of purpose At first such an| arrangement might work with consid-
 erable friction. but in due season manyI difficulties will be eliminated ThcrcI Is one power which on m consideration should be granted to such a commis-
 sion-that is the power of fixing pric-
 es. To give any small body of men such a power would be highly danger
 ous in any office of a political nature. IL would be easily possible for a few
 men to practically confiscate an entire industry. For the government to at tempt to fix prices is un-American. un-economic and would practically amount to socialism. When the conse- quenccs of such policy are thorough ly appreciated it is quite certain that they will not be adopted They would be just as harmful as if fixed by priv ate monopoly, if not more so.
 on the stock exchange there has been a quiet but somewhat better un- dertone. The most favorable event of the week was the placing of important new issues with more success than at one time anticipated. During the first two weeks of January there were few er new fluctuations than expected. [ mainly for the reason that conditions 1 were not considered entirely favorable ! by bankers. It has been maintained 1 Tn these advices that capital was largely holding back for better terms. 1 and that if lower prices or better rates of interest were granted capital would ] be forthcoming fore freely. This has proved tO be the case by the readiness | with which certain issues paying per cent were absorbed. The same argu- | ment applies also with more or less fo rec to stocks. Dividends arc gencr- | ally being well maintained and there are no further apprehensions of their excepting possibly in a | few instances. Many of the industriaIs are showing unusually liberal returns m spite of comparatively dull business. These securities, however are more exposed to the VicisSitudeS Cf tariff and other forms of legislation. hence they are less in favor than usual with
 careful investors. The continuance of he investigation mania at Washington
 also acts detrimcntally upon industri-
 ils. For such reasons good railroad shares are receiving more and more
 attention from shrewd investment buyers. The railroads have been
 through the fire of an anti-monopolvl 'rusade, and have fallen into the sheI- ering arms of the Interstate Com mission. which, while it may have re- strained their power over rates, has f ifforlcd them the advantage of aboI- shing rebates. checking runous com stopping free passes and oth-
 T evils which are now almost forgot on. Further. it is quite obvious that
 ne railroads are freer from legiSla-
 i've attacks than they have been for many years. though still contendingl against the eXations of state and city
 governments Even the latter are be- Gming more reasonable because of he establishment os better relations between the railroads and the public. ! The last two weeks of severe weather ! VIII probably curtail earnings for d , period. but this is only d temporary s natter After period of fully two { f.f nnnf fnN |