The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1914-09-13
COTTON WITHOUT
RELIABLEMARKET
Many Willing to Sell at Low
Price, but Drafts Often
Difficult.
PASSENGER TRAFFIC LOSS
Americans Demand Expensive Quality
of SeFvice-Southern Postpones
Preferred Dividend.

There is practically no dependable mar
ket for spot cotton in those parts OF
the South where the fiber is being picked
and brought TO the places Of sale. Neither
foreign nor domestic buyers are doing
much Of anything at this time, although
in former years they were active with
plenty OF funds on hand to take the Of
ferings from the growers.
Nor is the difficulty simply one Of hold
ing back the supply on the part of the
grower. They are willing to sell in many
cases at low prices; but there is some
difficulty in negotiating drafts. Under the
circumstances, the growers find difficulty
in meeting their borrowings at bank. As
a result of this the banks are asking for
extension to their loans from Northern
: banks.
The attitude OF Northern bank, which
has made advances to many cotton
States institutions during the CROWNS
period Of cotton, is probably typical of
many more. These requests for an ex-
tension of maturing credits for a nine
ty-day period are not wholly accent
able,'' declares a bank official I'VE do
not like to renew notes for three months,
even though the original may have been
made for that term. A great many things
may happen before the new maturity.
A sixty-day extension is more within the
limits Of our preference
Several Georgia bankers who recently
have been in the city take the view
that, owing to the splendid yield of cot
ton in that State this year. the grower
can market his crop at a low price and
Yet come out almost as we'll as he did
last year. The bankers who take this
view are not so strongly disposed to ex-
tend loans
Il am not in favor of going much far
ther than the emergency currency amend
ment provides" said a banker yesterday
Il think the emergency currency fund
will provide the Georgia banks with about
as much additional currency as is safe
for them 10 have"
The idea is that it is easy enough to
Put out additional funds, but not so
easy 70 get them back.
Another banker. with the same condi-
tons in view, says: Our Southern Dor
rover is not so prompt in paying back
as In some other communities. He IS
Just as honest and just as safe: but, in
stead ef paying it of a day ahead Of
maturity, he may defer it a few days or
a week longer before he comes in to set |
tie the account Our nquidations de- |
pend so much on crop movements, and |
this year there is more uncertainty than |
usual involved in the whole subject of /
marketing cotton. We believe we will |
get through all right, hut we must be |
prepared TO make some concession and
be a little more patient all round
Passenger Traffic Expensive.
Statistics compiled by a bureau devoted
to such work furnish an unusually in
teresting study just now with respect to
passenger rates and traffic. in view of
the certainty that an increase in pas
senger rates amounting to about 10 per
cent is to be made. if sanctioned by the
Interstate Commerce Commission.
More than One-third Of the railway
mileage of the United States carried its
passenger business twenty years ago AT a
loss, according to these statistics The
recent decision of the commission in both
the Eastern and Southwestern rate cases
held that many of the present State
enforced passenger rates are Improbable
and that the railways need not apply to
interstate traffic the excessively low
rates forced by State legislation Figures
taken from reports of the commission
show that at least, for a quarter of a
century, the passenger traffic OF the
United States has either resulted in ac-
tual loss to the carriers performing the
service, or has failed to contribute its
proper share to railway revenues.
The commissions recent decision
therefore, is seen the result, not of
A recent development in passenger traffic,
but of the assertion that American pas
senger fares never have been adequate
to the expensive quality of service de-
manded by the American public. L
Carload Freight Scale.
New and uniform rules governing the
weighing and reweiEhing of carload
freight which have the Endorsement Of
the Interstate Commerce Commission and
the National Industrial Traffic League
have been promulgated by the American
Railway Association, applicable through
out the United States.
One OF the chief ends they effect is the
discontinuance OF the reweighing of {
freight in car lots en- route or at destina-
tiOn, owing to weighing having been done
under supervision at the initial point of ,
shipment. The practice thus ended neces-
STATED the changing Of billing in every
instance where alleged error was discov-
cred. the reading Of one track scale hav-
ing TO be substituted for another, al
though often investigation made after
complaint by shippers showed that the
initial point weight was correct. 1
The new rules are the result OF an ex-
haustive inquiry conducted by the inter- l
state Commerce Commission and a COM
mittee Of the American Railway Associa- r
ton with the weighing committee Of the
National Industrial Traffic League Later
they are to be embodied in new tariffs
now being compiled by the railroads, and {
viii, II is expected, have the effect of
minimizing claims for overcharge due to
reWeighing of freight en- route by inspec- I,
ton and Weighing bureaus. n
Trading in Bonds. =
The letter of the New York committee
Of seven received by bankers here shows a
that the financial situation has improved o
sufficiently that a plan for underta King. y
investment selling Of bonds which was h,
considered week ago and deemed in
advisable can now be put into effect with
The approval Of the bank clearinR-house
and the stock exchange COM
mittee. This plan does not let down O..
he bars for bond trading as some per :,
sons may think. a
It simply stamps the approval of the G
nvestm bankers committee on the g
,ale Of bonds by dealers to their private $
.Iients when such sale can be made with
nut disturbing the collateral loan situa-
~ il