The Washington times., 1914-04-26

Liquidation in domestic ard foreign
markets established on Friday low
record in both railroad and industrial
issues for the year. and carried the
former stocks to point which has not
been reached since June p. 1908. An
average of twenty of the most active of
the railroad stocks was 99.4S. as COM
pared with a high average for the year
of lO9.43. while 4 similar average for
industrials was 77.52 Friday, against S3.43
on a previous high market
The drop in prices of the active rail-
road stocks is due to a general belief
that all high dividend roads will be
compelled TO reduce such disbursements,
while lack of orders and general dull
! ness of business in the great industrial
, corporations accounts for the falling of
such stocks. To this must be added the
recent injection of the war possibility
into the situation.
Many Influences.
Numerous influences have combined to
initiate against higA dividends. The
prices of equipment, supplies, and labor
have steadily increased over a consider
able period of years, and these in
creases have been such as to Offset the
effect of growth of traffic, and pre-
clrded the decrease in the handling of
each unit.
The public has demanded higher
standard of freight and passenger serv-
ice. But large depots cannot be main
tanned as cheaply as can small ones;
the upkeep of trackage over which fast
trains are run is greater than that over
which slow ones move The railroad
officials acknowledge that improvements
tending to safety and good service
Should be made, but they point to the
fact that such improvements do NOT
yield a proportionate return, and con-
tend that they should be allowed higher
rates.
Public regulation, admittedly in many
instances beneficial and necessary, has
entailed an expense to the railroads.
Inc numerous reports that are required
10 be made to commissions cost much
money.
Congress Was Slow.
Just now the work of physical val
uation of the railroads of the country
is to be made. Congress dickered long
would have to be made from the
Treasury Of the country. w. J. Wilgus,
a New York engineer, has just COM
pleted a physical valuation Of the Le-
high Valley railroad, in connection
with testimony which was required by
the Interstate Commerce Commission
In the anthracite rate investigation. He
declares that to value the $4,000 miles
Of railroad in the United States will
cost the companies themselves sl25,-
100000
This is a burden which the roads
nave not yet assumed. Many of them
now contend that they cannot make
Improvements, must reduce dividends
and make other curtailments because
their returns are not sufficient to JUS
tify such outlays. Each road must add
to is already heavy burden, according
to Mr.. Wilgus, 500 per mile for physl
cal valuation. This would mean an
outlay of s25,0o0,0O as the expendi-
ture of the roads for their own work.
de- to determine that they are being
properly assessed.
Million for Maps.
The additional s1Oo 0OO. 900. Mr.. Wilgus
says. WIN be required to supply the
specific sizes and types of maps and
reports which the Interstate Commerce
Commission has specified.
Reports were circulated in New York
Saturday that the Interstate Com
merce Commission would soon de-
termine the question of whether the
roads of the East are to be permitted
the rate increase asked.
In the industrial lines, orders have
been slim. The United States Steel
Corporation, one of the greatest of the
IndustriaIs, has been operating for sew
eral months at not more than h1 per
cent of its capacity. Other great in
dustrial organizations have been work
ing on a comparative basis.
To the average man or woman the
prospect of war would naturally beck
pected to depress business. But many
operators Of large organizations declare
that while there may be depression dur
ing the present period of uncertainty as
to what attitude this nation is going to