Great Falls daily tribune., 1920-06-27

healthy stimulus in the public utility

healthy stimulus in the public utility
market.
New offerings of municipal bonds
were small, due on the whole to the
present unfNyorable conditions for is
sues of this character. Bankers and
financiers generally are discouraging
municipal financing at the present time.
Perhaps the most striking illustration
of this was the situation in Chicago
refused to underwrite q S15,0OO,000
loan proposed to be issued for general
improN,ment projects. Bankers in
sisted that such work be curtailed until
more opportune time for financing.
The news of the refusal Of this loan
was one of the interesting pieces of
gossip in Wall Street and was the sub
ject Of much conjecture, surprise gen.
orally being expressed that a city of
over two million population should be
refused credit by its own banks.
Rapid Transit Faces TIeup.
Motormen and conductors of the
Twin City Rapid Transit company have
announced that unless they are granted
wage increases Of 20 cents an hour by
July 1, they will strike and tie up the
system. Horace Lowry, president of
the company, announces in public
statement that the. present condition of
the company's finances makes these in
that the earnings and disbursements of
the system at preent are such that the
stock of the company is paying about
one per cent on the investment. To
grant these increases would be ruinous
he says unless there are corresponding
increases in fares. The proposal now
before the city council seeks Z cent
fare-four fares for 25 cents. The
action of the council is being watched
within intense interest. Last Decem-
Der the street railway company failed in
its efofrts to have new franchise
passed by special election granting
permission to raise rates sufficient to
render a fair return on the money in
vested. A tieup Of the Twin City sys-
tenn such as is threatening would prove
a real calamity
Fall in Prices Foreseen.
The day is no longer here when a
laborer can maintain his independent
attitude and step easily from one job
into another. According to investigation
recently completed by the United States
chamber of commerce, conditions are
approaching the point in this country
where the law Of supply and demand
may again become operative. The much
heralded fall in prices in the clothing
trades has served to distract attention
somewhat from the general decline, but
several industries such as the lumber
trade, for example. have actually
reached q point of Generalization where
they have threatened to shut down un-
til conditions improved Iron and steel
likewise are feeling the effect, and the
aborers, both skilled and unskilled,
have been advised to consider care
fully before undertaking strikes or
walkouts. This condition, while unde-
sirable from many points of view, GER
tainly have a healthy effect upon the
present orgy Of high wages and conse-
quent high prices. OF course, there can
be no substantial reduction Of prices
of raw materials or finished products
as long as the cost Of production re-
mains at its present level, but just as
soon as a reduction in the wage scale
can be accomplished, then we can ex-
pect to witness a substantial and per-
manent decline.
Building Situation Improved.
Reports from Chicago indicate that
building conditions at that point are
easing up materially, due largely TO the
cancellation and abandonment of i'm
portaut undertakings. Materials can be
had in larger quantities than formerly
and even at substantial price recessions,
especially in lumber and mill work.
Skilled labor in the building trades
also is becoming easier TO secure, due to
doubt to the absence of competitive
bidding for their services.
CLEARING HOUSE REPORTS.