South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-11-27
RAIL LAW FIGHT
FELT ON STOCKS
CleWS Says 1t Will Have ReaC-
tiOnary Influence Until
Settled.
~ Henry CIcw-.


NEW YORK, Nov. 27.-InCreased
pressure Of securities seems 90 be
developing in stock exchange circles.
There is still a remarkable power
OF absorption. But the selling seem
ingly is by stronger interests than
the buying. and the new position
does not suggest the same degree Of
strength and confidence as has so
recently been current
This reactionary trend is not alto
Eether surprising II may In appre-
ciable measure be regarded nat
uTal response 20 news developments
that are calculated 10 exercise a
more or less restraining influence on
stock exchange operations. For in
stance. the decisi IN Of the managers
OF the large transportation compa-
nies Of the country 10 contest the
enforcement Of the Adamson law
the cO-called eight hour railroad law
on the ground that the measure
contravenes constitutional rights,
opens up an important question. Ef-
forts are being made as a result
Of the co-operatier of the govern
point by the court of last resort be-
fore January 1. which is the date set
for the measure to go into practi-
cal operation. In order 20 expedite
he decision the United States circuit
court at Kansas City has ruled
against the consIitutionality of the
act. admittedly ignoring the merits
Of the case This permits an APP
peal at once 10 be taken i'm the in
terest of a prompt final decision.
The Adamson law was enacted under
threat Of a nationwide strike that
promised 10 tie up trade and indus
Try ano entail widespread suffering.
loss ard Inconvenience. Labor still
seems 10 be maintaining the same
determined attitude to enforce 10y
this means higher wages under
threat Of shutting down transporta-
ton facilities. Presumably there will
be no stoppase Of work if the SUI
creme court rules tina. the law "a
enacted does not violate cOnstitu-
tiorql guarantees. But. on the 9TH
or hand. should the court sustain
what seems 20 be the unanimous
NttW Oh eminent ram UrN ltA-ftl til -
Nisers namely, that the law is un-
constitutional. then. if present state
rIents OF leaders are to be accepted
seriously. no time will be los IN
bringing about a serious condition
in railroad operation. This is an un-
fortunate condition of affairs.
CAM Defy Courts.
~ H.u rv
lar position for labor to assume If
81 should openly defy the courts. The
railroads are il is true. enjoying
q period Of prosperity. The owners
of securities Of the roads as well as
the employees are entitled to partici-
pate in this Improvement. There
should moreover be proper regard
for the credit of the trar sportation
companies which need large amounts
Of new capital for extensions and
improvements in order that they may
conduct adequately their functions
as common carriers. This new cap
ital cannot be readily secured un-
less the railroads themselves can
show they are conducting profit
able business and that the new secur-
tiles they propose TO offer to in
vestoTs arc sound. Any attack such
as is now threatened BY labor would
he discoUraEin to purchasers OF
the older classes of railroad securi-
ties. no. to mention investors in the
newer ones. Until this matter final
~ Is cleared up il is apt 10 continue
q restraining and uusettling infu-
ence in stock exchange circles.
Unusually heavy foreign demands
that from day 70 day are appearing
for Now capital seem TO be finally
resulting H. an appreciably frmer
money situation. This weeks of
fu-ings have included a $4,000. OOC
Russian government loan a So
0CO 600 loan 20 China and three
loans Of $50 .0OO. 900 each TO be di-
Nided equally smong the three
I'rerch cities Bordeaux. NarseiIles
ana Lyons. There az Sc dications
TOO. that domestic irtere also are
making provisions for new capital
taking advantage OF the abundanct
OF money and credit that is so clear.
y following as result of the war
There seems reason 20 believe how
ever that every effort will be made
on behalf Of the British treasury tC