Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-03-06
Optimism IS
NOTE SOUNDED
IN CLEWSLETTER

Henry Clews latest financial letter
says in part:
Moderate hopefulness is the preVa.
lent tone in business. This sentiment
would be probably more pronounced
were IL not for the fact that We are
still passing through period of re-
adjustment to new political and in
dustrial conditions. In other words,
we are in the throes of important adj
vances in ideals and methods. which
are not always cheerfully accepted and
which frequently produce more or less
friction and hesitation. So far as po-
litical changes are concerned, these
promise to be much less radical than
was feared a few months ago, There
has been considerable modification OF
extreme views held in Washington;
and the evident inclination Of the ad-
ministration to give business fair
chance is having its effect upon-the
federal legislature. In industrial cir
cles the prevailing sentiment is also
more hopeful; although there is con-
siderable dissatisfaction. particularly
in the East, over the changes neces-
sary to meet new legislative require
ments. The disposition of Congress to
NEEDLE with business often runs to
alarming extremes, and thoroughly JUS
titles the frequent apprehension OF
serious consequences unless there is
q halt in disturbing agitation. Some
time must necessarily elapse before
the present tendencies have exhausted
themselves and the new requirements
have been made clear and effective.
Not in this generation has there at
any time been such universal COM
plant against excessive interference;
and it is high time that the business
community raised its voice in vigorous
protest. West of the Alleghanies there
lis decidedly more optimistic tone
because that section of the country
is less susceptible to attacks upon cor
porations, or to Industrial depression,
than the East The West is also in
generally sound condition, and Is still
feeling the benefits of last years good
harvests.
General conditions are sound, and
the earning powers of our large rail
road and Industrial corporations,
though put to a severe test by slow
business and increased expenses. have
not showed any impairment. Never
theless, there are several uncertainties
which need to be watched. The rail.
road rate situation is probably the
most important factor. 1t would be a
mistake to expect the administration
to interfere, although 1t is very proba-
BILE that the desire of President Wilson
not to hamper business further than
necessary might have some effect at
least in Fastening a decision and thus
removing the doubt. 1t is now said
that decision may be expected not
later than July. This is encouraging,
but railroads, which are not likely to
get all they ask. are still in the midst
of a crisis, and the severe winter
weather of the last few weeks is sure
to have a detrimental effect upon
their earnings, which on the average
are running fully 5 per cent below a
year ago. The transcontinental roads
have been unfayorably influenced by
approaching competition of the Pana-
ma canal, which may enforce some re-
duction in rates, also by the govern
ment suit to compel the Southern Pa
eific to dispose of its Central Pacific
holdings. Another factor of uncertain
ty is the enforcement of the Sherman
antitrust law. which may compel the
dissolution of many of the big indus
trial holding corporations. The harm
fulneSs of these diSSolutionS, however,