New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-16
FINANCIAL RECORD
HERE And ABROAD
Wabash Plan Failure
Shows Railroads Plight
Call Money Easier.

Withdrawal OF the Wabash reorgani-
cation plan makes an arraignment of
the treatment of the railroads particu-
larly timely in view OF the reheRring of
the Eastern freight rate case next
week 1t is true that the Wabash,
with its crushing load of debt on which
il has 60 pay interest, is naturally
among the first TO feel the effect of
adverse conditions, but the burden of
higher cost of operation, with rates
stationary or lower, affects all carriers.
As the Wabash committee points out
the railways of the country in varying
stages of progress are all following the
same path. The shipping and travelling
public and the railroads and all that
directly or indirectly depend upon them
must suffer unless the public policy
toward the carriers is changed.
For the Wabash il is stated that in
the last fiscal year one of the greatest
volumes of business in its history pro-
duced almost the smallest operating in
come. Passengers, 1t is figured, are
being carried at the rate of one-tenth
Of a cent mile less than cost and a
ton OF freight at only little over one
tenth of a cent mile above cost, in
spite of stringent economy. Under
present conditions no increase IN
smount of business may be expected to
make operation Of the road reasonably
pE9ftable.
Much interest was displayed yester-
day in the coming visit OF representa-
tives of the British Treasury TO confer
with the Federal Reserve Board ana
cur financiers. This unusual departure
is the result of informal suggestions
made by our Secretary of the Treasury
10 the British Chancellor of the EX-
cheauer. IL is understood that reopen
ING of the stock exchanges, resumption
Of British buying of our cotton ana
settlement of the foreign exchange
question through more liberal grant
ing of credit against our commodity
shipments will all be taken up,
Whether or not definite agreements VIII
be reached as the result of these discus
sions is not yet certain, but Deneht
should follow this exchange OF views
by representatives Of the two countries.
The easier tendency in money yes
+erdav at last showed itself IN definite
lover rates for loans on call. For the
first time since the Stock Exchange
closed public offer was made OIL calI
money ut T per cent and a considerable
amount was placed at this rate. III IS
true that many banks have been charg-
ing their customers only per cent
for This accommodation, but the rule
had been to ask per cent OF others
The question Of allowing concessions IN
listed stocks has been the subject oil
some negotiations, though no definite
conclusion has as yet been reached
Gradual resumption OF trading through
allowing business to be done at an IN
creasing range Of lower prices IS open
10 considerable objection, and the opin-
ion still prevails that we must await
action on the other side Of the, water
before attempting any general open
trading. -,.-
Buving of demand sterling by banks
who preferred to meet their payments
for the city loan in this way rather
than diminish their gold reserve iur-
Their stiffened rates again. A little less
than S60OO,000 was engaged 1or snip
ment TO Canada as the part oil the
citv's pavment that was being made IN
cold. Cotton bills are coming into the
market little more freely and. 1t Is
boned that the modified cotton poor
plan NAV result in better movement
Of the staple. With the changes thaI
Iocai bankers have insisted upon this IS
the most practical method OF relleI
,-ot nronosed. and even though not
wholly liked, it is felt that hopes OF
holders Of the staple have been so raised
h., the many projects offered that II mas
bSon made necessary for some such
scheme to be adopted II cotton is 10 De
released into the channels OF trace