The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-04

| itself to be utterly worthless as Onering
any ground for refusing the petition of
| the common carriers. There was left only
| the line of attack on the railroad prayer
| for relief which was represented by that
| pious crusader Brandes. and even Mr..
Brandeis felt compelled to acknowledge
that the railroads had proved their need
of larger revenue.
At the conclusion Of the Interstate Com
| mercc Commissions inquiry into the sufii-
cheney Of railroad earnings there was no
longer any question that the railroads
had made out their case and there re-
NAMED only the commissions determine
tion of policy In dealing with the exigency
thus established. The prediction pre-
viously exhibited by the commission for
the provision of relief through tho direc-
ton OF higher charges for service At
industrial plant lines and In related opera
lions naturally left some uncertainty as
to whether or not n general rate increase
would be allowed at this time. Even 20
the commission could not fail to sanction
by implication an expansive principle in
rate making. which would be the greatest
gain that the railroads could attain.
Nevertheless. all along there has been
a strong probability that the commission
would recognize the risk that much
needed relief for our highly disturbed
economic situation centring about the
plight of the ralrOads might fail II there
were too dogmatic an insistence on al
ternatives TO the precise kind of relief
for which the railroads applied. All tho
circumstances Of the case have suggested
that when the insufilciency OF revenues
was shown beyond peradventure. as 10
has been shown. the commission would
authorize at least n part Of the higher
tariffs which have been filed. II was also
felt last week that the commission had
Ind frnt NJ Vn.flI lin
readiness to render an earlier decision
than seemed likely not long ago.
All the stress which finance and busi-
ness have laid on the Importance OF fair
dealing for the. railroads has been de-
served. Wherefore when II began to
be felt that omens were propitious for
an expression OF fair dealing spirit
by the Government regulators Of the rail-
roads the financial community was in
clinod to adopt a more courageous atti-
tude in the stock market. At the same
time the Roadway made lately in adj
justing some difficult corporate situa-
tons helped to the betterment Of senti-
ment. which played a large part in the re-
covery OF the stock market. More cheer
full opinions were encountered in several
leading financial quarters than had been
obtainable there IN many n month
There are troublesome corporate prob
lens in considerable number which have
vet to be worked out but things have
been moving in the right direction. This IL
clearly the significance of the successful
arrangement OF the New Ravens impera-
tive financing and the progress OF the New
York Central consolidation scheme In
respect to this last subject the financial
district found II particularly gratifying
that while the Interstate Commerce Com
mission set up lack OF jurisdiction Il
went out of its way in reporting to
Congress. which had ordered an investiga-
tion to utter some obiter dicta approving
the New York Central merger, both FOR
financial and operating reasons. The re.
turns of railroad earnings for March
showed that while control had been as
serted at the expense Of full maintenance
allowances. the railroads had been able
to gain u measure OF control over oper-
ating expenses. and all the advices from
the principal agricultural areas were OF
the most pleasing nature.
1t is FAR too early in the season to
indulge in so much enthusiasm as that
attributed to a large grain operator who
processes to see possibilities OF a billion
hushel wheat crop this year. but SO far
the agricultural prospect Is fair and
favorable As long as it remains fair
American finance and American BUSH
ness Fave more reason TO make con-
structive plans and engagements than the
contrary. even allowing for the detri-
mental factors In the economic situation.
One OF these IL the depressed habit which
trade and industry have been acquiring.
habit that is not suspicious OF recov-
ering tendencies near the advent OF
summer. when slackness Is normal. An
other is the strain which must inevitably
be inflicted on confidence by the pro-
tracted session OF Congress.
Other Influences also, including the I'M
happy labor conflict in Colorado. militat.
against oversangulne views but taking
its cue from the country's financial CEN
ire IL would seem that American business
might proceed to turn more hopeful
face 70 the future. SO much that is bad.
actually or conjeCturally. has been dis
counted by stocks and business that
values and volumes are not likely to he
afiect~d very unfavorably by the persist
cnce Of old adverse factors nor by the
accident of new ones unless they are of
vast Importance. on the other hand
values and volumes seem likely 10 make
some response TO good news, particularly
announcement derived from the crop
season or from the field OF politics. where
a growth of ideas Is sprouting which may
ripen into a harvest OF reaction 10 con-
servatism and common sense.