The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-04-07
PoIITICs VS.. BUSINESS.

Inc SlOCk l1dIhcl, aCCcPtSO ny AuAuy
and not without good reason as ba-
rometer of the conditions that prevail
in the business and financial world.
stands up we'll considering adverse
conditions, according to Henry Clews.
the New York banker. He discusses
the untoward factors. in his current
weekly financial review. as follows:
These are briefly embraced in a
dull and unsatisfactory condition OF
business; in the illiberal attitude of the
Interstate Commerce Commission to-
wards the railroads, and in the dis
quieting Mexican situation. Unques-
tionably the railroad outlook Is by far
the most important factor. Perhaps
one of the best features of the railroad
outlook is that the worst is in sight.
The crisis il already at hand. The
railroads are on the verge of a critical
situation. A change for better or for
worse must shortly develop. For sew
eral years they have endured a harsh
policy Of government repression; the
unfortunate consequence of past mis-
deeds which stimulated unreasoning
popular clamor and prejudice. Amer
lean railroads have had to make phe-
nomenal OUTLAWS during the past few
years to meet growing traffic require
ments. Their expenses have been
enormously expanded by increased
wages, higher costs of materials. in
creased taxes and all sorts of expen-
sive legislation. When traffic increas-
ed the railroads were able to only
partially offset these expanding obli-
cations. Since traffic began shrinking
net earnings have been steadily declin-
ing. and several of the strongest and
best established systems in the country
reported startling losses in net during
the last few months. In spite of such
facts. the railroads have not been al
lowed to recoup their losses by any
advance in rates. Every other line of
business except railroads had the
right and used that right to meet in
creasing costs by raising their charges.
The inevitable result Of such a policy
of repression is to bring many of the
roads within sight of bankruptcy, If
the present harsh and unintelligent
policy is not corrected. Our railroads
need large amounts Of new capital to
give the public much needed facilities.
But capital will not enter the railroad
field unless terms are satisfactory and
the conditions sufficiently assuring.
At present the roads are forced into
unfavorable terms when applying for
new capital, even upon a limited scale.
1t is about time that government Off
Gals who control the present situation
should realize that they are not only
inflicting useless punishment upon the
innocent for deeds that cannot be un-
done, but are also really depriving the
public OF necessary facilities by Grip
ping the railroads financially. If
there is any lack of railroad facilities
! in the early future. the responsibility
must fall upon those members of the
Interstate Commerce Commission who
have thus far shown a singular lack
| of courage and intelligence in dealing
with a national problem of the great
est importance and delicacy.
I'm other respects the political sit
uation. which unfortunately is such a
factor in financial circles, is improv-
ing. The repeal of the Panama canal
tolls bill at Washington will have a
good effect. 1t unquestionably salts
fies the country's desire to maintain its
| reputation for national honor. 1t will
also serve to promote more harmon
ious relations with foreign powers. and
will preserve Great Britain's friendli-
ness towards the Monroe Doctrine: {
friendship that might prove of con.
siderable value in the future. TIT
contest over the Panama issue ha.
also made more clear the lines OF Pc
litical cleavage. 1t IL certain that radi
calism in political circles IL on thu
) wane. The injury to business from
} much of the legislation recently con
!templated is already foreseen and viii
probably be prevented. Protest.
against further antitrust legislation
have been so universal and have com,
from such unquestionable sources tina
the probability of any radical action il
this respect grows more and more re
mote each week. President Wilson
is beyond doubt the strongest conser
vative force in Washington today. Ac
cording to his pledge he is doing hi
utmost to prevent injury to> business
, Can he restrain the radical elements II
his own party? The change in politi
cal drift should hasten action on tn
, part of the Interstate Commerce Com
mission on the rate question. and ru
, mors are now current that an earl
, decision Is in prospect.
, Another hopeful factor in the sit
uation 10 the money market. We ar
now evidently in for q long period {
ease. Trade requirements are restrict
. ed. and funds are now returning free
! lily both from the interior and frol
q Canada The monetary situatio
:. abroad il also easing very MATERIAL,
both in London and in Paris. This
. Encouraging. not only in the stoc
market, but in promoting trade r,
o vival. In all probability easier rat,
: will facilitate the placing of, necessal
: foreign loans, several OF which ha,
: lately appeared. At home 1t will a
v the starting nf many new enternria,