Evening star., 1914-02-01
CAUTION EVIDENT
DESPITE ADVANCE
Weeks Rise Based LarqeIy on
Psychological Opportunity,
Says Writer.
ACTUAL IMPROVEMENT
HINGES ON WASHINGTON
Prospective Trust Legislation and
Freight Rate Decision Potent
Future Contingencies.
BY w. G. NICHOLAS.
Special Correspondence Of The Star.
NyUSuy :,

Specidl Correspondence OF The Star
NEW YORK, January 81, 1914.
The wide publicity that has been given
| to statements that the business of the ma
tion-especially that part of it in which
the large units of organization have been
affected-has started up from the severe
depression it has undergone has been
received with more than d little skep-
ucism by those whose knowledge of bust
ness conditions should be accurate. The
coincidence of these optimistic state
ments. as well as interviews, with a much
more active stock market on advancing
prices, has left the impression with the
more thoughtful that a stock market
movement was undertaken that was more
largely based on psychological opportu-
nifty than actual improvement.
That a new atmosphere has been
created by the Presidents message is
undoubtedly correct. and men of affairs
would like to accept as accomplished the
good feeling set forth by the Presidents
helpful words. but the caution engendered
by the political development of recent
years still holds them in check. They ap-
preciate that the President thus far has
been able to impress his will for conserv-
ative and fair dealing with business upon
Congress. and they have sincere hope
that he will be able to continue so to do.
However. they are not convinced that
this is possible. and in the face of i'm
pending legislation. which was largely re-
sponsible for the depressed business con-
ditions. 1t is felt that the business world
will hesitate before expanding
The trust legislation is SO vital to the
commercial prestige of the nation, and
the definition of competition" or "re-
straint of trade in forthcoming leg,sla-
ton has such a serious importance that
hesitation until there Is full knowledge
Of the legislation would seem to be but
fair. sound judgment There are some
lation which seem impossible of meeting
without danger to values. but it is certain
that Wall street will meet these questions
In an effort to solve them fairly.
Railways Patient Wait.
Bitter medicine in the business situa-
ton: When representatives of the man
agements of the fifty-two eastern rail-
road systems east of the Mississippi went
before the interstate commerce commits
sioners nearly four years ago and peti-
toned for an increase of 10 cents per ton
on freight they encountered representa-
tives Of their workmen asking for an ad-
vance in pay that would amount to $4O,-
OOO. 900 per year. Inasmuch as the freight
rate raise asked for would be approx
nlaCely per year the rail-
roads, the suggestion was made that both
sides go before the commissioners with
as near a joint agreement as could be
reached.
1t was explained that as matters stood
the railroads could not pay the new
assessment of $40.OO0,OOO annually al
lowed as a wage advance unless means
were provided for earning the additional
revenue. No serious objection was
Deriad na
were granted the equivalent of 1000. 600
annual lift in wages. Almost simulta-
neously the commission turned down the
demands of the employing railroads cold
The spokesmen for the commission ex-
planned that by the exercise of proper
economies the roads could get along
without serious trouble The commission
softened the blow by suggesting that the
new arrangement be given a trial, and
If after three-year test the results
proved the existing plan to be unfair,
relief might be asked. Beyond that no
definite promise was given. however
Early last summer second applica tion
for a raise in freight rates was asked for.
In order to make the plea easier the rate
mentioned in the second application was
cut from the original 10 cents to cents.
| We have given the existing plan a care
| full three-year test. said the Spokesmen in
| substance. and find it impossible on the
| existing revenues to furnish satisfactory
| returns to either owners or the public.
l
/, laid before you any time, was the sun
Elemental statement. 1t covered the three
years period suggested. and all salient
I; facts were included in the reports
The essence Of the commissions renIy
| was that a ten-year record was the in
| dispensable requirement for the search
to cover period seven years beyond
| the limit originally specified. Protest
| was hopeless. and half a year was put
| in by an army of experts spread over
dozen states collecting the new data
| demanded (as an expense of over
| s.. .OOO. .OOO). A statistical wizard was en-
ployed by the commission to plow
through the tGainloads of data supplied
by the railroads for the commissioners.
The public had taken kindly to the
| courteous attitude of the railroads Nine
| newspapers out of ten took sides that
way on the editorial and news pages
| The greatest orators in the country spoke
| for fair play 1t looked like a victory
| for the railroads.
Rate Delay flinders Market.
! That was before the wizard was in
| troduced into the situation. He was not
affected favorably. and after a few
| weeks of study the commission bore
down on the railroads with a peremptory
further extreme demand for complete