The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-19
FINANCIAL NEWS
AND COMMENT
Rate Case Decision Is Entirely
Favorable for Securities
and Business.
WALL STREET SALES STOP

Trading or speculative sort there has
, becn. but speculative movement has yet
to develop itself
Another thing which was suggested was
tliN to some extent at least the immedla tc
effect OF the decision had been partly dis
| counted IN the recovery of prices which
took place In the last few months from
the low level reached In the IRREGULAR out
side dealings after the Stock Exchange
closed In July. Expectations have been
prevalent shat the Interstate Commerce
Commission would make important con-
cessions to the railroads because in the
very nature Of the situation there seemed
to be nothing else for IL to do. At the
same time the ruling Is SO entirely favor
able that only the most stubborn pessimlst
can suppose that its beneficial influences
have been felt In values or adequately
measured in business conditions. no mat
ter how long postponement may he
necessary before the effects of the decision
for good are realized
Wall Street yesterday did not have time
during the Stock Exchange session TO
dnalyze the commissions opinion or prop
erly weigh its significance. The publica-
ton OF the opinion in fragmeutarv form
began shortly before noon and continued
until well into the afternoon. and az
usual under such circumstances the finan-
cial community was slow to make IN its
mind what 1t all meant, and still slower to
act upon conclusions. particularly as the
stock MARKET was taken very much nm =
s~ares by the publication OF the decision,
which had been looked for this afternoon
or at some other time while the stock
Exchange was NOT omen
When the news of the finding in the
rate case came out the share list was
IN weak state. From the outset OF
business there had been scattered but
fairly persistent execution OF selling orders
under which quotations had been carried
rather sharply downward.
The selling seemed to represent some
bearish trading effort combined with
liquidation from various sources which
round their reason or excuse in the
character of the war dispatches showing
German gains. which were construed AZ
adverse to financial prospects. and in the
reports OF shrunken railroad earnings.
striking dividend decreases as in tho
Louisville and Nashville reduction. and in
tho general dcpre ssion OF trade and in
dus.ry. II Is also Wall Streets fashion
to assume that a securities market cam
not he stationary and that II IL will not
20 up IL must go down Selling was
| bound TO be induced ny the inertia which
developed after the initial activity follow
ing complete Stock Exchange resumption.
Announcement that the rate case find
ings were coming out stopped the selling
i''FNfitN'Ns anu 'NlTdfES from the decision
started a rally which held well through
out the rest of the day. Buying did no,
follow prices up, but although closing
quotations showed irregular changes final
figures Were well above the lowest
obviously the war factor complexities
any markctwis Use reflection OF the Inter-
state Commerce Commissiuu's change OF
attitude. II is not hard to imagine what
effect would h" had at another time by n
mi tTt,. a
which most conspcuously represents
government; by commission and the whole
theory of Government regulation. espe-
riIlly when the declaration fayerSed "A
destructive policy pursued In the past and
conferred on private corporate =
franchise of material freedom from oD-
press.ve political eXact!on.
BY vote Of : To the commits
sion has practically reversed the decision
rendered by > to = vot, on july 81.
In the previous decision the commission
recognized the railroad need. hut refused
To do anything really helpful for railroad
credit lis new prouounccment - Il long
step ahead. The meaning of II cannot
be measured in the millions of dollars
which viii h" directly added to railroad
earnings. itS creates, Importance con-
sists iu the cnange Of policy which starts
Government regulation In direction awav
from the road leading to Government
ownership along which regulation had
been travelling
In comment on the decision last night
some grumbling WAS heard because. hay
Ing gone 50 far the comm ssion did not
go further in a1ording railroad relief but
the truth of the matter is that the rail-
roads have received very much what they
asked for. The commission has granted
n general rate Increase Of : per cent
with exceptions, instead Of the grant OF
some exceptional increases OF per cent
with a general refusal OF anything else
which is about what the railroads got
last July. Moreover. there are distinct
intimations i'm the decision that the COM
mission having radically changed its at
utude, IL fully prepared to do more than
II has already done II the railroads can
show necessity.
So far as concerns the securities mar
ket and the business situation the facts
are that the most belrshly dispos. 4
spectators cannot pretend that the deci-
sion makes conditions worse According
10 the philosophy OF New street, which
IL anxious to have tho gutter ma RI ct
restored for listed stocks the decision
is very bad because II must tend 10
strengthen prices and so make the shai'a
list attractive for European liquidation.
Except, however, for such fantastic
reasoning the inference which men OF
ordinary inttll!gence will draw from the
rat" ease fuNng Is that II mas helptul
implications all around.
II will encourage investors TO keep
their securities and stimulate IN
vestmeut absorption. II win conduce 10
banking activities during the winter in
the financing OF railroad requrema nts
ana to general business improvement az
the result Of the placing OF railroad con-
tracts for equipment and material
Everything esa IN the Wall Street
day was Of course ershadowed by the
outcome OF the rate case, II might he
noted. though, that the foreign exchange
market displayed favorable symptoms OF
weakn, ~. sterling bills closing at t.S7
for demand, with marks only 70 Ntus
above SO.
Also tho domestic money market ex-
hibited signs OF increasing relaxation.
Time money wa. freely offered at 1
per cont. for all maturities and. the
Federal reserve bank for the New Yorl;
district met the changes elsewhere
established by lowering It's rcd scount
rates to per cent. for thirty day paper
and -. per cent for bills having mora
than thirty days but less than sixty days
to rum
COTT0NSEED OIL.