New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-12-19
FINANCIAL RECORD
HERE And ABROAD
Market Uncertain After
Freight Rate Decision
Checks Decline.

tn. securities market yesterday
made SLIGHT response 10 the announce
nent OF partial relief for the railroads
In the freight rate decision. When the
Tvs. word came stocks were in the
midst of q pronounced decline, and
traders. fastening 20 cover, caused an
abrupt uoturn. After thi1. as the re-
mort came In no particularly compre-
heusiblc form. stocks turned reaction.
arv. Later roads particularly afected
improved, but the gain was not main
tanned 20 the close
The decision, however. must be re,
earded as great advance in railroad
rate regulation. The commission mas
allowed a broad increase In tariffs and
indicated that IL would consider re-
dueed earnings and deprecated crediI
as arguments for higher return. holo,
ers OF railroad securities now may reel
renewed confidence. Particularly Is this
true Of bondholders, including the
great insurance companies and the saw
Ings banks. which in recent years nave
beer seeing the margin of safety on
their investments steadily reduced.
with federal regulation about TO be
extended into no one knows what new
fields through the new Trade commas
sion, IL is important that this sign OF
regard for vested interests should have
been furnished.
II is true that the benefit from yes,
terday's action is more sentimental
than real. While gross earnings OF
the carriers are still so low IL is un-
reasonable 20 expect any immediate
great release of railroad orders 70
stimulate general trade. Yet as pur-
chases BY the roads have been so re-
stricted for the last ten months or So
some improvement should be mace
next year TO assist this country 10
fight against the depressing enects OF
the European conflict Since the com
mission has taken the position that
maintenance must not be sighted TO
increase net income. IL may be expected
that IL the present advance and add
tional means Of revenue pointed out
are not sufficient further aid may be
had by the roads involved. and that
lines elsewhere will receive reasonable
treatment
While rail and lake rates remain un-
changed and anthracite mad bituminous
coal. coke and iron ore must De car
ried according TO present schedules
number Of gross commodities that were
excepted from the former increases IN
Central Freight Association territory
ore included in Yesterdays advance.
These have been carried at rates not
far from cost ard in great volume, and
their omission at the time OF the for
mer decision was greatly deplored.
OF the roads most Immediately bene-
flied New York Central, New Haven
and Erie were prominent in yesterdays
upturn, but final gains were not large;
Reading, a coal carrier was lower, ana
Steel, in spite of some prospect OF pet
ter railroad buying, was O fraction on
an the dav. Before the decision first
came to the market, some thirty min
ntes or so before noon, declines of over
a point or more had been fairly gem
eral. with prices tending downward.
The regional bank here reduced its
rediscount rates for paper maturing in
thirty days or under 20 per cent, IN
line with most of the other Federal
Reserve districts. Money continued
easy. Fixed date funds were offered at
per cent for as long as four months
and call loans we're renewed over the
week end at per cent. Sterling eX-
change was offered in sufficient volume
for purchases for to-day's mail steamer
and closed lower Marks wers in de-
mend and showed some recovery.
Business during the week as meas
ured in bank clearings was little
changed. Compilations Of gross rail
road earnings for the first week OF the
month made trifie better comparison
with 1918 than those of month be-
fore. Commercial failures we're more
than year ago, but under those OF
last week Exports OF wheat for the
week ended December II reached
300 900 bushels. against 100000 the
week before, and less than 100000
wear ago. General trade was reported
still dull. though some improvement In
domestic distribution was seen in the