New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-20

through SuCn cons OPldlI utN' lpi NV
belief persists that a strong upward
movement i'm the market, lasting long
enough TO dispose Of some securities
1t present undiges.ed, is 60 be expect
ed es soon a some good excuse pre-
scnts itself. As for general business,
without doubt the crops must help
greatly unless unusual disappointment
intcrvcncs between the present brill
liant prospects and harvest. But il may
be that this help Us needed TO prevent
worse things. rather than to lead to
any great expansion.
New Haven Report Drastic.
The Interstate Commerce Commits
sious report on New Haven finances.
presented on Monday. was perhaps not
uniustly criticised as being cOuched M
the language Of political pamphlet.
and proved most disquieting. The facts
presented were not new; they had been
brought out in testimony before the
commission, and were matters OF com
mon know edge before that. but the
hostile frame Of mind of the commis-
siOners As disclosed was discouraginG
when If was considered that with ever
increasing powers the federal body had
in its control the future Of the rail
roads Of the country.
SO far as the New Haven itself Is
concerned. faced with government
suit for dissolution unless it's directors
consented TO the sale Of its Boston
Maine shares. cntailed with the right
of purchase BY the State Of Massachu-
sctts. 70 was feared by some that the
management might in despair seek ref
ugc i'm the courts. This. however
would not mean better price for sub
salaries which must be sold and would
not free the road from costly leases
and guarantees without drastic reor-
Canizatiou. Considerable relief was
felt when II was announced that the
interests supporting the road had no
such purpose IN mind.
The Missouri Pacific system ap-
parently is to undergo thorough re-
organization, il possible without re-
ownership. Strong banking support
has appeared IN protective committees,
and Il is understood that the Gould in
,ereste. so long identified with tho
property. are no longer to be concerned
with its management. The Missouri
Pacific fought along when other roads
were having their fixed charges scaled
down through reorganization IN the
courts. with the result that now MS
reouiremeuts for interest payment are
apparently greater than can be borne.
II is difficult to persuade bondholdera
10 forego any of their rights, but be-
fore now owners Of junior securities
have given up something to strengthen
their position i'm the end. When l9l
is finished business doctors VIII, IL
seems. have applied some radical rene
dies 10 railroad corporations, winch
have had 10 face the difficulties that
arise from theory OF finance based
on perpetual borrowing when Lenders
are unwilling 10 advance further
funds.
Little Tpturn Follows French Loan.
Abroad. the predicted market upturn
and renewal OF investment, which. II
was hoped, would follow the success Of
the French loan. failed to appear. Early
in the week unrest in the Balkans de
messed the bourscs, but later the re-
uoval Of Huerta from his atteuuatcd
Mace Of mower i'm Mexico encouraged
The 70 Aigu markets though the most
cheerful tone Of London showed Itself
in frmer prices rather than IN greater
activity.
The Bank Of England strengthened
its reserve further, the proportion to
liability, over 81 per cenr, beng neariJ
per cent better thau the week before
and unusually high for this time OF
wear. The loan item was reduced moro
than 81 100000 and bullion was IN
creased 100000 In Paris the Bank
Of France reported SIS gold holdinc
practically unchanged for the first time
~ months. Now that the long OK
ncctod loan OF the government has
been covered. there was not the great
necessity for accommodating gold. Loans
and dopO.its. which had made such
remarkable increases before the loan
wa. offered. shrauk CORE spOnaIugly.
The Bank OF Germany increased .ts
gold by nearly 3@.0O0.0O0 marks, AMI
discounts were over lGJ.O0O,O0O marks
smaller
Accommodation ClaAin Paper.
The market for commercial paper
here became unsettled after 10 was
learned that I'm at lcas. one Of the
Ciafiu subsidiaries note 90 large
amount had been hoatcd that did not
represent purchases Of merchandise.
The Clafin rcceivablcs made their
great reputation because they were
supposed % arise from actual sale Of
drygoods. originally issued by an in
dependent buyer aud indorscd by thc
seller 10 bad, Of course, been rccOg-
rIzcd by the banking world that 20 a
large extent Che makers % these notes
were pract cally agencies OF the whole
sale house, but the paper continued 20
F. circulate widely on the assumption
that it had merchandise behind il. The
rrctideut ana manager OF one Of the
subsidiary concern 30 Montana test
Gcd that notes Of his company TO the
amour. Of over 5i.5OO.OOO we're ia c.-
tence. issued DO New York by the
treasurer without his knowledge and
aopareutly representing no sales 20
thc Wc.tcIn concern.
when the ClaAln rccciyership was
announced there was some fear that
This great source OF credit, created
L. 80 ~. - IL.