Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-04-18

! financial and business condition Of
J the country generally The greatest
drawback to prosperity, as this author
! ity sees it, is the refusal of the inter
state commerce commission to per
NIT the railroads to increase their
rates. Money is easy. and much de-
velopment is predicted as a conse-
guence; and the political complexion
! is such as to help out the general
confidence of business. investments
are looking up slightly. and the crop
outlook is good for this season. The
letter follows:
The stock market stands up we'll
considering adverse conditions, These
are briefly embraced in a dull and
unsatisfactory condition of business;
in the illiberal attitude of the inter
state commerce commission towards
the railroads, and in the disquieting
Mexican situation. Internationally the
railroad outlook is by lar the most
important factor. Perhaps one Of the
best features of the railroad outlook is
that the worst is in sight The crisis
is already at hand. The railroads are
on the verge of a critical situation.
A change for better or for worse must
shortly develop. For several years
they have endured a hard policy OF
government repression; the unfortun-
ate consequences of past misdeeds
which stimulated unreasoning popular
clamcr and prejudice. American rail-
roads have had to make phenomenal
cutlays during the Da1t few years.
Their expenses have beer enormously
Expanded by increased wages, higher
costs of materials. increased taxes
and all sorts Of expensive legisla-
ltion. When traffic increased the rail-
roads were able to only partially Off
set these expanded obligations. Since
traffic hogan shrinking net earnings
have been steadily declining, and sew
eral of the strongest and best estab-
Ilished systems in the country report
ed startling losses in net during the
Hast few months. In spite of such
facts, the railroads have not been al
lowed to recoup their losses by any
advance in rates. Every other line Of
business except railroads had the right
and used that right to meet increas-
ing costs bv raising their charges
The inevitable result of such policy
of repression is to bring many of the
roads within sight o bai kruntcy. It the
present harsh and unintelligent pol
Icy is not corrected Our railroads
Ineed large amounts of new capital
to give the public much needed facili-
tiles. But capital wifi not enter the
railroad field unless terms are salts
factory and the conditions sufficiently
assuring. At present the roads are
forced into unfavorable terms when
IRpplying for new capital, even upon a
limited scale. 1t is about time that
government officials who control the
present situation should realize that
they are not only inflicting useless
punishment upon the innocent for
Ideeds that can not be undone, but are
Ialso really deriving the public of
necessary facilities by Gripping the
railroads financially If there is any
lack of railroad facilities in the early
future, the responsibility must fall
upon those members Of the interstate
commerce commission who have thus
far shown a singular lack OF courage
land intelligence in dealing with ma
tional problem OF the greatest inn
lportanee and delicacy. - ..+..s. Il
Canal Tolls and Amt Trust L legislation
In other respects the political situa.
ton, which unfortunately is such a
factor in financial circles, is improy.
ing. The repeal of the Panama canal
tolls bill at. Washington will have a
good effect. 1t unquestionably salts
flies the eountry's desire to maintain
its reputation for national honor. 1t
will also serve to promote more har-
mcnious relations with foreign powers,
and will preserve Great Britain s
friendliness towards the Monroe Doc
trine; friendship that might prove of
considerable value in the future The
contest over the. Panama issue has al
so made more clear the lines of po-
litical cleavage. 1t is certain that rad
icalism in political circles is on the
wane. The injury to business from
much of the legislation recently con-
templated is already foreseen and will
probably be prevented. Protests
against further antitrust legislation
have been so universal and have come
from such. unquestionable sources that
the probability of any radical action in
this respect grows more and more re-
mote each week. President Wilson is
beyond doubt the strongest conserva.
tive force in Washington today. Ac-
cording to his pledge, he is doing his
utmost to prevent injury to business.
Can he restrain the radical elements
in his own party? The change in po-
litical drift should hasten action on
the part of the interstate commerce
commission on the rate question, and
rumors are now current that an early
decision is in prospect.
Easy Money Helps.
Another hopeful factor in the situa-
ton is the money market. We are now
evidently in for long period of easa
Trade requirements are restricted, and
funds are now returning freely both
from the interior and from Canada.
The monetary situation abroad is also
easing very materially. both in Lon
con and in Paris. This is encouraging.
rot only in tho stock morkpt hut in