The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-07-20
Horny ciews In Weekly Business Re-
View Says II 10 Time to Give
the Railroads
Chance.
THE EXACT SITUATION
Commerce Commission Proud o. TX
posing Fraud In Railroad Man
aeement But Construct
I've Work 10 Needed.

NEW YORK, July 1S.-This market
has been contending for weeks
against most discouraging conditions,
and with better success than might
have been expected. The drastic re-
port Of the interstate commerce COM
mission regarding New Haven affairs
was fresh blow to confidence in the
financial district. Coupled with the
rumors that the commission will next
undertake the examining of the Van
derbilt lines and the Rock Island, the
impression was created that the COM
mission is becoming highly inquisi--
torial body with pronounced anti-rail-
road proclivities. Originally the COM
mission was intended to be Of q judi
cial rather than prosecuting character.
It's actions and policies OF late. how
ever, have created widespread distrust
and there is in consequence much con-
Germ about the forthcoming rate de-
cision. Once more It should be re-
membered that the railroads have
been obliged to pay much higher
prices for all the equipment and plant
which they required, and that they
have made very liberal concessions to
labor in the form Of higher wages;
but have not been allowed to recoup
themselves in any degree for these
increases in expenses by higher rates.
At the same time, the roads have
been obliged to endure a somewhat
serious decline in trafic. Severe
economies have been introduced, but
these cannot be expected to continue
indefinitely; because rails and rolling
stocks are wearing out and must even
tually be replenished. It seems, there
fore, the height of economic injustice
to refuse to railroads the right to do
what every other business interest is
forced TO do, which Is to compensate
itself for unavoidable Increases In ex-
penses. by increasing It's charges for
service A refusal to recognize this
principle would mean serious conse-
quences, and, II the credit and the
service to the public of American
railroads are impaired In the early
future, the responsibility should be
placed upon those directly respon-
sible. The interstate commerce com
mission has done good service in ex-
posing some OF the glazing evils in
| railroad management, but the time
has come for reconstructive work and
the display of judicial attitude rath-
er than that Of a persistent prosecu-
| tor. Missouri Pacific affairs have
also occupied much attention and ad-
ded to the general lack Of confidence.
Rumors as to the financial condition
of some Of the weaker roads further
tended to depress the general market.
The Clafiin failure seems to have dis
appeared as disturbing effect, and
the present outlook is that other seri-
GUS consequences in that quarter will
| be averted.
Domestic business conditions are
| decidedly confused. 1t can not be
| said that there is any decrease OF
trade at large: probably not more
than Ave or ten percent below last
year. The situation, however, Is de-
cidedly spotty, and some industries
| continue to show q very marked
| shrinkage; notably in the iron trade.
| The latter has, however, shown a
moderate tendency toward recovery.
| but orders are still far below the nor
NAL, mainly because OF the impaired
purchasing ability Of the railroads.
The textile outlook Is fairly satisfac-
tory, and considerably larger bust
ness tranepired in the New York dry
! goods market as result OF the rush
OF buyers to attend the Claflin sale.
One striking feature in the situation
is the contrast between the optimism
OF the west and the pessimism of the
east. On this side OF the Alleghenies
depression is almost universal for rea-
sons that are now we'll understood.
Advices from abroad are not en-
tirely satisfactory. Evidences Of over
doing in the chief capital market OF
the world. London, are decidedly sug.
gestive. The capital applications at
that point in the first half OF the cur
rent year aggregated $750,0o0,000.
against 5000, 100000 in the first half
of 1913. The largest increase was In
colonial loans and rails, goodly por-
ton OF which was absorbed by Can
ada. II is worthy of note that a large
share of the original issues had to be
taken up by underwriters owing to
the failure OF public subscriptions. 1t
turned out also that the big Paris
loan recently fioated was not so large
" oversubscribed as at first reported,
anes some disappointment followed in
consequence. At Vienna and Berlin
there is renewed uneasfness because
OF the unsatisfactory Balkan outlook
The above is a rather formidable
array of unfavorable factors. Hap
PLY they have been largely discount
ed by the present lower range of
values. Let us now turn to consid-