The Washington herald., 1914-09-03
ROADS INCLINED
TO REST CASE
Officials Do Not Contemplate
Attempting to Reopen Rate
Increase Subject.
BOND MARKET SUFFERS
Members Would Have Stock Ex-
Change Open for Limited Trading.
Pennsylvania Reports.


merce Commission a month ago, accord
ing 10 leading railroad officials.
This statement is, by implication at
least, confirmed by the announcement that
the Pennsylvania Railroad has fled with
the Interstate Commerce Commission a
new tariff advancing tine price Of inter-
changeable mileage books from to Ala
cents a mile.
At the same time the railroads by no
in banking and investment quarters TO Sc
cure a rehearing Their position yester-
day was outlined by prominent Eastern
executive officer as follows:
We have told the commission every
thing We could about the rate situation,
| and the reply was that we were wrong
In my opinion. which Is only that Of an
Individual. as I have not conferred with
any other railroad men on this point, Il
would do no good for US to ask a rehear-
ing Just now. The best course open TO US Is
to say nothing, but go ahead attempting
| to apply the remedies the commission pre-
scribed. II 1t should appear later on as
am convinced II will, that all Of these
remedies are either impracticable or in
capable OF producing any substantial re-
suits, we might then go to the commits
that a general rate increase is the only
way out"
Bond Market Wanted.
Investment brokers who are members Of
| the New York Stock Exchange want to
open the way for resumption Of trad
ing in bonds that do not figure in specu-
| lation on the exchange. This includes
most of the municipal and State issues,
as well as many Industrial, railroad and
| public service bonds which are not list
ed on the exchange and which do not
figure largely in the collateral held by
the banks except in loans 10 the houses
| that distribute such securities.
| These houses are quite IS deeply in
terested in preventing sacrifice sales as
the banks can be, and they claim that
| IL would be better for all to let down
the bars and get the money in circula-
| ton which small investors are holding
to buy desirable securities.
London bankers and brokers are work
| ing together to straighten out the tangle
| so that trading may be resumed on that
the same in the United States should be
less because the United States is not
only at peace. but IN position to profit
by the war. Money is needed, and there
is plenty OF money IL It is made available.
Sentiment is not panicky, and the banks
are Strengthening their cash reserves
and reducing their deficits in surplus re-
loans cannot be liquidated without a
market For these reasons investment
brokers. favor resumption OF trading on
a limited scale, knowing that some trad
ing is going on all the time in the out
side and that the regular houses are
losing business and prestige by not
serving their customers
Financial Condition Better.
A president of a bank which has many
Southern customers yesterday said: The
banking situation is entirely sound, and,
II anything, 1t tends TO improve. AS far
as the general financial outlook is con-
cerned, It is useless to attempt fore
cast No banker. no matter what his po-
sition in the financial world. and no man
OF affairs can tell what will happen in
Europe next. and without such knowl-
edge predictions regarding financial de-
velopments should not be attempted. Ger
tain factors. however, are encouraging:
although all that We can do in the bank
ing world at the present time is to deal
with conditions as they present them
selves from day to day.
II exports OF cotton could be resumed
that would be another important matter;
and, OF course, there will be shipments,
although on nothing like the usual scale.
Normally. We should export about a.
amount will be about cut in half. and we
shall be obliged to carry about 35O0OO0
bales over. 1t will be carried all right.
I'VE shall make more manufacturing
use OF cotton ourselves than in the past.
Sugar manufacturers will Use a lot OF it
in place OF jute for bags to contain their
sugar, and manufacturers of fertilizer
will also use a large amount in the same
way. Furthermore, manufacturers of
rGur IL 1NrNv will
get opportunities to replace European
manufacturers in many markets: and al
though the crop is a large one, and the
requirements of European manufacturers
will be very greatly reduced, the cotton
will be used up in time"
Municipal ROnd Sales.
The amount of municipal bonds adver-
tised for sale since the first OF August and
not disposed OF is estimated by the Finan-
cial Chronicle at 100000. In a majority
OF cases not a single bidder appeared.
Bonds actually placed amounted to only
S, 10000, while those withdrawn from the
market after a date for receiving tenders
had been fixed, amounted to S6,25O,OO0. The
list of cities, towns, and counties which
offered bonds without success during the
month contains 10 names. There has been
difficulty also in negotiating temporary
loans.
Municipalities in Canada had some
trouble in floating new issues before the
outbreak of war in Europe. This latter
has imposed a further embargo. An in
stance Is found in the case Of Ottawa,
which advertised for tenders for s965.g50
4 1-2 per cent and $4,000 per cent deben- |
lures. Not a single offer was received. |
Bankers who made advances to the city,
pending the opening Of bids, will not give
further loans. it is said, until the deben- |
lures are disposed Of. and in the meantime
1t is feared that municipal work will have
to be suspended. Other recent offerings
by Canadian municipalities have been I'M
successful and much contemplated Dor |
rowing has been curtalled.
The eastbound transatlantic move |
ment for the week. ended August %, |
numbered but 423 first-class, 1.O42 second. |
and $50 third-class, a total of but 7.215, |
as compared with 1854 during the cor |
responding week Of last year, a decline |
Of 6,299, or As per cent
The westbound movement last week |
totaled $780, against IS, 469 in the same
period last year, a drop OF 1853. Only !
eight transatlantic passenger steamers
arrived at United States ports last week.
To enable growers in Western North
Carolina, East Tennessee and Southwest
Virginia to promptly forward live stock |
to Eastern and Southern markets and