The Washington times., 1922-08-27


seems to be a final termination Of
the rail strike negotiations. without
successful result. has naturally been
disappointing to the market. but this
disa ppointment is somewhat quail.
fled by the fact that the roads are
steadily improving their personnel.
Granting the cooperation OF the
Government in maintaining a steady
movement of freight, 1t 10 reasona-
BILE to expect continuous improve
ment in operating efficiency. with
the result that existing difficulties,
both Of coal and merchandise move
ment, will gradually be smoothed
out. The postponement Of settle
ment In the anthracite field has nat.
urally been disagreeable. but there
appears good reason to think that
in that branch Of the negotiations
also an early adjustment can be ar
rived at on some basis.
Support Of Administrators for Roads.
President Harding's promise Of
support on the part Of Administra-
ton for the steady maintenance Of
transportation and for the recogni-
tion Of the right Of employees to
work has furnished encouraging EVIL
dence Of the friendliness Of the Ad.
ministration toward legitimate busi-
ness. The effect of 1t has been 10
stimulate belief in the future of the
rails as earners, In view OF the Inn
mense volume Of traffic, now offer
ing to them. Judged by every test,
carloadings, tonnage and financial
returns, most Of the standard rails
are now far ahead of last year.
There is no reason why they should
not maintain their dividends II they
can be sustained In the maintenance
of freight movement. without un-
warranted expense in the fighting
of an indefensible strike. Recog-
nizing these facts In the case, the
public has been more than ever in.
clined to purchase the rails during
the past week, fact which accounts
for the very decisive advance In
some Of them. The announcement
OF a 81, ,000. 900 issue Of 6h per cent
preferred stock by Chesapeake and
Ohio shows that the banking COM
munity Is fully aware OF the i'm.
proved. attitude Of the buying public
toward railroad securities. Except
for this, and the issue made by
Northwestern a few months ago. the
railroad financing which has been
conducted on a basis of stock issues
has OF late been extremely scanty.
II will be a wholesome development
II a reasonable amount Of the nsw
capital that Is needed by the carriers
can be raised through issues Of
stock rather than through the sale
OF bonds.
Bonus Again to the Front.
It is an unfortunate fact that
Just at the juncture when business
Is endeavoring to overcome the
handicaps imposed by disturbed
labor conditions, and at time
when the pending adoption Of a
new tariff bill will necessitate a
very considerable amount Of adjust
ment to new conditions. there
should be a renewal of anxiety
about a Federal bonus. Advocates
OF this legislation have resumed
their effort to secure its adoption,
and the possession Of enough votes
in the upper house Of Congress to
carry II to the statute book Is ad.
mitted by many. This places on
President Harding~a serious respon.
sibility and necessitates earnest sup
port from the business and financial
in an anti.bonus policy.
Studies lately made Of the bonus
show that It Is likely to run much
nearer to $1,000. 100000 than to
81 ,o00, ,00, 900. the original minimum
estimate, and sales taxes will un-
have to be adopted in
order to provide for II. This fact
would largely preclude the use Of
the sales tax as a means Of reform.
ing the present income tax situa-
ton, purpose for which many
Of the sales tax have de-
sired to see Il reserved.