The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-12
FINANCIAL NEWS
AND COMMENT
Rate Decision Outs Short q
Promising Advance in
Railroad Shares.
Is DISAPPOINTED

The decision OF the Interstate Com
merce Commission. which was made
known in the Street shortly after the
opening Of the market. halted n promis-
ing rise in the railroad shares and upset
the general lis, of stocks rather thor
oughiy. Al first the market hesitated.
sold of easily and then came back. An
other weak spell in the last half hour
sent prices to the low level Of the day.
this being followed by q partial rally
before the close.
There was heavy selling for both ac-
counts, and under the circumstance
prices held we'll. One or two Of the
wal stocks. which were naturally in an
Insecure position after the great and
rapid rise during the last few weeks. fell
heavily. But this was not especially
significant as regards the main posi-
ton of the market. In fact the out
standing feature Of the trading was its
irregularity. A considerable number Of
fairly active issues did not decline at
all and certain specialties not only re-
sisted the general weakness but actu-
ally advanced i'm the face Of II. Ameri-
can Beet Sugar. for instance. was rom
s~picuously strong throughout the session,
and "A vigorous buying movement in Al
disclaimers forced the price mp to a
new high level. or the rails. Canadian
Pacific and Southern Pacific were both
In strong demand. The best information
IL that the directors of the Southern
Pacific to-day will declare the regular
dividend on the stock.
Besides the rate decision, which was
the dominant influence in the market.
there were other matters which might
very well have had an adverse effect
upon sentiment. The rather unpleasant
phase that the Mexican situation has
taken on was something to suggest eau
ton. Another break in exchange In
view OF the spectacular importation of
gold promoted renewed discussion OF the
! difficulties that lie In the way OF a res
toration of the exchange market to an
approximately normal basis. In view
of these uncertainties the action OF the
market was such as to quiet apprehen.
sions hat a dangerously topheavy spec
ulativc position now exists. The present
reactionary movement may go further,
but the substantial support accorded Il
the market yesterday is evidence Of the
strength of the present price structure.
There was no doubt at all of the dis
appointment OF the Street in regard tc
the rate decision. The general opinion
was that it was fatty and unqualifiedly
unfavorable and spectators sold stocks
vigorously on the first limitations OF its
contents. An analysis Of the decision
however. may lead to a Modification OF
hasty judgments. The commission. IL |:
true. granted only part Of the increase:
suggested and refused to sanction thu
rest. The advances allowed are com
raratively small and invariably anec'
items thai do not bulk large In railroad
traffic. The total additional revenue
granted, according to a minority re
port written by Commissioner Daniels
amount to II .6OO. 900. The railroad pro
gramme would have increased rates ap
proximately $40, o0o 900.
The decision was also a d~lsappoint
ment TO the railroad people, but they viii
not feel entirely hopeless nevertheless
The immediate benefits are small. bu
with increasing business they may we
become considerable. Also the decision
may he regarded n partial victory 70
the roads from the broad point of view
II represents another step Onward OF III
principle OF higher rates which was es
tabIished last year. The first decision
in the Eastern rate case practically de
MED the railroads any relief at al
Under great pressure from the con
munity and with the excuse that N
great war has made ONE such actlo
imperative the commission reviewed II
decision and granted larger advances.
In the present case the commission hs
voluntarily permitted a certain upwar
revision OF rates. although the needs O
the Western roads are admittedly not q
great as were those of the Eastern line
last year. The stand taken by Commits
!. %sloncrs Daniels and Harlan in the mi
nority report that improper financia
acts should not debar the roads fror
receiving reasonable compensation 10
service given Is a recognition OF the bar
Justice and common sense involved In III
plea Of the railroads that Is refreshin,
For Commissioner Harlan this suggest
a most radical change Of viewpoir
which NAV be highly. significant.