New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-05-18

the financial centres of the agricultural
districts money is being withdrawn
from the banks and loan rates are
being advanced. If It were not for in
nuences outside the normal sphere OF
commerce, such as uncertainty over
Mexico. antitrust legislation and
doubt as to what is to be done in tho
railroad rate case, business men believe
that trade conditions would rapidly be
improved.
Trade Sentiment improved.
This better sentiment prevails in the
steel industry, according to trade pub
locations. despite lowered prices for iron
and finished steel and continued low
bookings. and commercial agencies re-
port a hopeful outlook in general trade.
Bank clearings were diminished in VOL
ume. however. comparing unfavorably
with the week preceding and with
year ago, and commercial failures in
creased. Building permits in April
called for less expenditure than in the
same month last year and were
slightly under March, 1914.
Some stimulus to business should
come from a favorable decision in the
freight rate case, if. as expected in
Wall Street, the commission grants re-
lief through allowing higher charges,
instead Of merely pointing out means
of economy and efficiency. The actual
benefit to the country through resump-
ton Of railroad buying is less important
than that a sign should be given TO the
I business community TO indicate that
/ government regulation does not mean
unfair regulation. 1t is not impossible,
! however, under the announced plan of
/ the Interstate Commerce Commission
that the decision first handed down
may be merely that the roads need
more net revenue, with the question
as TO how this is TO be obtained left in
definite.
Conferences Of the ruling political
PARTIES at Washington have decided in
spite of the protests of the business
| community, that antitrust legislation
must be passed before Congress ad-
| journs. This includes prohibition of
| holding companies in restraint of trade
! and of interlocking directOrates, estab-
| lshment Of an interstate trade COM
mission with power to investigate and
advise, and regulation by the Inter
state Commerce Commission Of the
issuance Of railroad securities. Legis-
lation to establish a farm credit sys-
tenn has, it is believed, happily been
postponed until the new banking act
has become effective.
Financing the Railroads.
After long and unsuccessful negotia-
lions with banking houses, directors OF
the Missouri Pacific announced plan
for extending the S25,0O0,000 gold
notes due on June l. To the collateral
on which the issue is based S3OOO,OoO
more bonds are to be added, and the
rate of interest is to be increased from
3 to 6 per cent. 1t is to be hoped that
after the present crisis in the roads
affairs has been passed steps Will be
taken toward putting the financial af-
fairs on a sounder basis that viii allow
its present efficient management, with
the advantage Of the great harvest eX-
pected and better treatment of rail-
roads looked for. to keep the system
from further difficulty.
Steps are being taken for the olsen
tanglement Of the Rock Islands COM
plicated financial system, the holders
Of the different securities involved per-
fecting a plan TO provide for immedi-
ate needs, and, again with the help Of
the hoped for bountiful crop, il IS pre-
dicted that the underlying road can
earn enough 10 put itself into condi-
ton. Though maintenance appropria-
tions have been liberal on the Rock
Island of late, there still remains much
to be made up from the years pre-
ceding. as expert investigators have
pointed out.
In the mean time better conditions
prevail for railroad financing. The
banking syndicate that took over the
New Haven notes announced that the
$50, 100000 one-year collateral 8 per
cents offered at % had been sold. An
issue of S35O00.0O0 one-year A. per
cent collateral trust notes OF the Balti-
more & Ohio to retire 100000 OF
maturing notes and pay for improve
ments under way was oversubscribed
on the day offered The Boston &
Maine, on the other hand, was obliged
to extend further the notes that ma
tured in February, as well as the issue
due in July.
Foreign Bank Returns.