The Birmingham age-herald., 1914-04-04
Hope Almost Universal That Requested Increase Can be
 Granted in East
WOULD BENEFIT ALL
 OVER THE COUNTRY
The Steel Industry Especially Has Suffered From the Holding Back of Orders by the
 Eastern Lines
Nv HOLLAND.

New York April 3.-(Special.)-If Presi- dent Wilson has been persuaded that the interstate commerce commission would not
 be likely to err if it grants the request of the eastern railroads for permission to increase rates by as much as per cent, I there must have come to his knowledge
 information which, although not formal. was of such character as to make it pos sible for the President to look favorably,
 although, of course, unofficially, upon the ! request of the railroad companies. Inti- ma ations have come from Washington to this city that the President has kept him self fairly we'll informed about the rail- road situation and is persuaded that not only for the railroads themselves, but also for business interests throughout the coun- try, it will be expedient to grant the in crease which is requested. The moral in- fuence of the President will be. it is sur
 missed, of value to the interstate commerce commission.
 Of course, these intimations from Wash ington may be without any justifiable
 basis. But for some reason the belief prevails in this city and in other large cities that the President would be grati- fled if the interstate commerce commis- sion should find it eXpedient to permit an l increase of rates.
 That a change in public opinion has taken place within the past two years respecting the reasonableness of increas- | ing railroad rates is unquestioned Presi- dent Daniel Willard of the Baltimore and l Ohio system has recently made public l reference to the change of opinion In railroad offices in this city it is said that l careful scrutiny of the newspaper press | of the United States shows that many newspapers which a few yetrs ago op- posed rate increase are now warmly fav- bring it, and that the number of those which are opposed to it is comparatively small
 In the Steel Industry One explanation which is given for the | falling off in the steel and iron industry is the curtailment of orders from the rail- l road companies. The corporations | throughout the United States whose prod ucts chiefly enter into railroad equip ment and supplies are suffering from de- pressiou due wholly to the falling off in railway orders. There are as yet no au- l thoritative statements which show the | number of skilled artisans employed by ! these corporations who have been laid off l or whose working time has been reduced, l but the suspicion is that the number is | large
 1 One of the leading manufactories of New l England, whose product is directly or in- directly associated with railroad activities,
 was compelled. respectfully, few days ago i to lay off nearly POO skilled artisans.
 It Is Reasonable Anxiety That some anxiety does prevail in the world of railroad affairs is not to be
 questioned. Whether it be reasonable or
 due to needless apprehension is of less importance to know at this time than 1 the fact that such apprehension does pre- vail.
 l In financial circles in this city it is said , today that recently there has been vis-
 ible demonstration of this anxiety. It is
 made in part by statistics which show
 the condition of recent railroad revenues
 and in part by the official disclosures l telling of the number of men who have i been laid off.
 l Some hint, rather guardedly made, was 1 given in Washington a few days ago that | the statistical reports of railroad revenues | are not to be relied upon since they rep resent skilful bookkeeping sc perfected
 as to make bad showing So, also, the hint vaguely referred to the possibility | that the Pennsylvania Railroad com pany and the New York Central lines have recently laid off nearly 5000 men | and have greatly reduced the train
 service chiefly for the purpose of making l Interstate commerce commission al Wash ington of the urgent need of the railroads for relief
 Tactics of that kind, if adopted by the | Pennsylvania and the New York Central | would show complete departure by these
 two great trunk lines from the methods | which have in the past characterized their management. And it must be said that in financial circles the opinion prevails l that the laying off of these men was irn- | perative It is acknowledged in the finan- cial district that one reason for the ]! thrusting, temporarily, it is hoped oi these employees out into the cold is to be found in business depression. That de- pression of this kind has characterized | the past six months seems to be proved 1 by the piling up of great masses of idle money in the banks. The falling off of business offered to railroads does account, therefore, to some extent for the laying off of employees and the reduction in the train schedules. Slack business prevails | almost everywhere. Those who are well informed of conditions in other parts of
 the world say that business elsewhere
 seems to be affected as it has been in the l United States.
 A Good Test
 l Possibly as good a test as any of the l accuracy of the railroad statements which report great falling off in revenues is I the fact that there is now practically lit tie or no new financing for the railroad 1 companies of the United States. It was 1 reported today by q high financial au- thorty that there had been scarcely any | attempt to secure fresh capital for rail- l road purposes within the past year A good deal of financing has, of course been | necessary in order to meet obligations or l to refund notes or bonds, but financing of that kind is far different from the kind l of financing which secures new capital for railroad construction.
 The best judgment in this city seems to
 be that if the railroad of this country are adequately to meet transportation de-
 mands within the next eight years they
 should be able to secure fresh capital,
 certainly as much as S, GOO. 900, ,0OO and pos
 sibly as much as $10,000. 900 900. Eight bill lion dollars could be expended to good purpose within the next five years, but
 neither railway managers nor men of finance now see any prospect of securing
 as much as one-hRlf of this amount or
 even less. Unless the railroad situation greatly improves within the next F months 1t is believed that railroad con
 struction will practically cease. All sorts
 of reports come to this city from Wash
 ington purporting to forecast the. prob-
 able action of the interstate commerce
 commission upon the application of the eastern railroad companies for permission to increase rates as much as per cent.