The Washington times., 1922-03-23
9%rHHHH##@ BUSINESS AND FINANCE
ISSUES ANALYZED
Copyright. 1879. by Cosmopolitan
News Servico.)

NSopyHgnt lSSs. ~ CosWopohee"
News Service.)
NEW YORK. March 22-Con-
siderable objection has been display
cd by stockholders Of the big Four"
to the proposed merger Of that road
with the New York Central lines.
and they are prepared to carry their
case to the highest court in the land.
A protective committee, which was
formed without loss Of time, ex-
presses the viewpoint of the stock
holders that while they are satisfied
with the terms of the present lease.
they see no reason for the acquisi-
ton Of stock control by the New
York Central.
The action now being taken by
some of the prominent railroad Sys-
tenn In seeking to enjoin the In
terstate Commerce Commission
from effecting a division of Eek
cessive" revenue when the railroads
have not earned their quota under
the transportation act is a signifi-
cant commentary upon the opera
ton of that emergency measure.
A short time ago, In the so-called
Wisconsin rate case the Supreme
Court decided that the authority Of
the Commerce Commission in Inter
state Traffic was paramount, and
that rates promulgated by this
board could not be set aside by
State railroad boards. But the Com
merce Commission received it's au-
thority from the transportation act,
and II the Supreme Court sustains
the validity of one section of that
act. why not every other section.
One of the purposes of the trans
portation act was to insure a fair
distribution of income until such
time as the roads were completely
"unscrambled." It remains to be
seen how successful this part of
the scheme will work out. 1t IL
understood that the Pennsylvania
road and the New England lines
will offer no protest against the
proposed redistribution.
A feature of the financial markets
Is the increased call for commercial
paper by the banking institutions.
This is an evidence of the accumula-
ton Of funds and an easier money
market generally. Banks which have
not been in the commercial paper
market for two or more years are
buying literally at current rates.
The final ginning return of the
Census Bureau shows the cotton
crop OF 1921 equivalent to nearly
5000, 900 bales OF gross weight Of 500
pounds each. The bureau had pre-
viously estimated the amount Of int
cotton AZ Of August 1, 1921. at 1894
$50 bales. making the seasons sup
ply 1880, 900 bales.
This Is a severe contraction from
the records Of previous years and
unless the cotton acreage is sub
stantially increased the conclusion
Is inevitable that the worlds cotton
markets will suffer a severe con-
traction. The European markets
have been sending over repeated
calls for the Southern staple, which
forms the basis for many important
Germany and Italy. These four
countries consumed 100000 bales
of American cotton in the six
months ending January 81. 1922.
Granted that the production of
more cotton is needed and that a
crop Of 15.0OO.00 bales would be
more acceptable than one of S.000,-
900, the problem for the Southern
planter is not 80 simple as 1t may
seem.
He has not forgotten his recent
experience of 10 cent cotton, brought
about in large measure by the ex-
cess OF production over the markets
requirements. And to a lesser de-
gree by the cutting off Of the for
eiGn market. But the southern
planter has learned that II is more
profitable to cut down his cotton
acreage and to utilize his farm lands
for the raising Of the foodstuffs.
The rotation of crops has added to
the productiveness of his land as we'll
as decreased his cost of living.
Furthermore, the prevalence Of
the boil weevil in recent years has
greatly handicapped the production
Of the southern staple, and has even
called forth warnings from the Gov
eminent against an ambitious in
crease in cotton acreage. g.