Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-06-14
Railway Earnings Considered.

Railway Earnings Considered.
Tabulations of earnings Of railroads
practically to date reveal the remarkable
fact that only five of the carriers can
show gains in net earnings for the fiscal
year rapidly approaching its end. These
are the Chesapeake and Ohio, with a
gain in net Of $57s.O21: the Duluth. South
Shore and Atlantic, with $63. 759; the
Seaboard Air Line. with $259, 142: the
Texas and Pacific, with $737,30S, and the
Illinois Central. with $1,090,81s. All the
rest Of the long list Of carriers. including
every one of the big trunk systems, shows
losses ranging from small figures to sew
era1 millions in net earnings compared
with last year.
No one will question the psychological
effect Of pessimistic forebodings when
applied to the business of the country,
but there must always be a reason for
such pessimism, and it is the cause rath-
err than the effect that concerns US just
now. Why this pessimism? 1t Is the firm
belief of many men today that the lack
of confidence that is exhibited on all sides
is not born SO much of material things
and conditions, but arises from the acts
of legislative bodies, state and national,
and from commissions and investigations
innumerable. In other words that men
are becoming less Influenced by statistics
of production and distribution of products
and manufactures than they are by ex-
ecutive actions and congressional policies.
A f1nancier of national reputation speak
ing on this topic only few days ago
says that the attitude of mind of the
interstate commerce commission has be-
come more important than the statistics
of railroad traffic. We read the totals of
our foreign trade to learn the effect of
changed tariff law, rather than of trade
tendencies. Reports of the attitude of
mind of the Attorney General vie in in
terest with the crop predictions of the
Secretary of Agriculture. Investigations
by bureaus. commissions or Congress
form a more important feature in gaug-
ing a market outlook than do the plans
for development or expansion formulated
by the executive committees of corpora
tons. Plans for development or expan-
sion of railroad or business enterprises
have indeed been heard of but little. The
factors that we have mostly in mind are
how new laws are going to Worn; what
new laws are next to be passed; what
is the prospect, not Of crops, but of con-
gresSional action.
Shreveport Rate Case.
The ruling handed down by the Su-
preme Court Monday in the well known
Shreveport rate case was in many
respects the most important decision Of
the highest court in the land since the
Minnesota rate decision Of last year. In
brief the Supreme tribunal holds that the
interstate commerce commission has
power to compel state railway commits
sions to change rates that are wholly
intrastate when such rates. affect inter
state commerce. The decision upholds
shippers Of Shreveport, La, who sought
to prevent the Texas railway commission
from giving discriminatory rates in Texas
to Dallas, Houston and other Texas
cities
Texas railway and the Texas and Pacific
railroad appealed from an order of the
interstate commerce commission directing
the Texas railway commission to sus-
pend an order of the state commission in
creasing interstate Texas rates discrimi-
mating in favor OF Houston. Dallas and
other Texas cities and against shippers
of Shreveport. La, who competed in
Texas for business in the district served
by the Texas railroad. The interstate
commerce commission commended that the
Texas commission had interfered with
interstate commerce. although the orders
affected clearly intrastate traffic. The
Supreme Court holds that Congress could
and should interfere to protect interstate
commerce from such injury as discrimi-
nation in rates and that Congress had
power to protect the instrumentalities Of
interstate commerce. even If in so doing
it lapsed into the intrastate field The
financial district had some difficulty in
interpreting the real meaning Of the de-
cision. some holding. 1t to be victory
for the interstate commerce commission.
and some a victory for the roads. In
reality 1t is clarifying for both, and
should result in a better understanding
of interstate commerce by each.
Financial Features.
General financial features are prac-
tically unchanged. The striking feature
Of the outlook at the present time is the
wonderful condition Of the crop districts.
According to government estimates.
based on a thorough canvass of the Sit
uation. a crop of 9O0.00o. 600 bushels Of
wheat. or almost half the worlds aver
age wheat production, will be produced
by the farms Of the United States this
year. This enormous wheat harvest sur
passes the previous high record by 49,
co., 900 bushels, or Is per cent moro than
the highest previous yield. Farm work
in the southwestern section is progress
ing favorably. and the Indications point
to a remarkably high yield in the terri
tory which was hard hit by the corn
crop shortage last year. Inasmuch as
prosperity in the southwest is more de-
pendent upon a bountiful harvest than
anything else, II stands to reason that
thasa conditions afford grounds for eY-