Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-05-25
SEE LACK OF HARMONY
WITH ADMINISTRATION
Presidents of Railroads Still
in Washington for Con
fcrcnccs.
Dr"kerH Insist Auditors Are mt work
ON Ne" HnNcn's Hooks to EntnbIi.h
Values for Merger with Canadian
Pnclnc.
MARKET pnAcs THROUGH DA,
By IL. l.. DnrnuIfI.

fescntativc stocks and with the ma
'h!ncry all set for further advances
IN the stock market speculative Wall
street gulpcG hard and tried TO smile
AT today's unexpected decision Of the
iht"rstht" Commerce Commission
calling for a reduction Of freight rates
on July |. which viii average 10 per
cent. as II result OF this surprise
the stock market dragged throni;h Tn.
day.
Prominent wall Street bankers and
railroad men made no effort TO con
c"al their astoniBhucnt at today's un-
expected news. IL was pointed out In
such quarters that only last Satur-
day night President Harding had some
twenty railway presidents to dinner
." ask for Il voluntary reduction i'm
'reight rates: that at that dinner the
'a!lway presidents agreed to appoint a
Committee OF seven TO discuss the en-
IRE rate and earnings situation with
the Interstate Commerce Commission:
that the first OF these conferences had
h""n held on Monday. the second yes
terday. with Thursday fixed for the
lhird: that tn" scveu railway prcsi-
6"n's making up the committee were
Htiil IN Washington waiting for
Thursday's conference win the Inter
state Commerce Commission.
Not Working In Harmony.
~ was also recalled that early yes
to-day morning Washington dis
patches wor" widely published in Wall
street predicting a decision from tho
Interstate Commerce Commission IN
the very near futur" calling cor
10 per cent cut Ia freight rates. that
'hc papers OF yesterday afternoon and
those o! this morning all had stories
quoting President Harding ur deny
ing the Wall Street reports that Their.
81.
ctsion. /, was stated that President
Harding was in doubt us To whether
'hc proposed voluntary reduction in
rates could be worked out and that ii
The railway presidents c"uiG not offer
"a voluntary plan the Interstate Com
fn"rcc Commission would have to take
UP the matter in the usual way. hold
ing hearings ana thus consuming
much time instead OF cnrctin.; an i'm
'ncdiat" reduction Ia rates. as the
Chez Executive had hoped for.
Win the commission announcing It's
rate decision this morning just as
the stock market opened naturally
Wall street concluded that there was
something In N" recent reports heard
What the administration and the Inter
stat. Commerce Commission we're not
working in the complete harmony tina:
many supposed.
See Gut I'm wnRrs.
In 'odaS's decision the commission
says that the railroads from March
J. 1872. are entitled 10 earn i 3-i per
cent on property account However
the criticism generally mad. in rail-
way circles WAS that inasmuCh as they
haze never earned tbs per cent on
tn. existing rate level. IL was aim cult
To sec how 3-t could be earned with
freight rates lower unless wages were
cut or traffic picks UP materially. II
statement Of the Union Pacific FOR
.iprN showed that earnings We're fail
ing of compared with March instead
OF picking up. However. IL was
agreed that tuday's decision placed.
the carriers In position To demand
that railroad wages be reduced
officials % Union Pacific and other
Western railroads say tina; the poor
Apri earnings We're due partly TO
the reduction in transcontincntal
rates forced in competition with
Panama Canal business. partly to the
reduction In farm product rates ord
cred by the Interstate Commerce Com
mission. partly TO the fact that husi-
ness had not continued TO improve rs
had been expected from the gains
made early in the year.
Big Four directors met today and
declared on the common stock "a
dividend" OF . per cent. the first since
September OF 1910. New York Cen
trai owns $4,000. 900 OF the $4,000. 900
outstanding common.
Copper metal for June delivery was
quoted today at II cents. Il new high
price for the year. y month ago the
price was ~ 81
More indications arc found that the
present rate of steel mill output will |
need to he maintained beyond the
third quarter OF the year, the Iron
fnha To,
buying, despite the large orders
placed In March and April at low
prices.
officials OF the Mexican government
and banks and industrial companics
In that country are beginning to ar
rive here for the conference 10 be held
on June 2 to readjust Meyico's in
dcbtedness. Thomas W. Lamont. who |
called the meeting. is now on his way |
home from abroad with representa-
lives Of the British. French and Ger
man governments.
Wall Street houses with close Bos- |
ton and other New England connec- |
tons are insisting that auditors of |
the Canadian Pacific are now at work |
on the New Havens books for the |
purpose OF establishing real values |
on which merger may be effected.
Bcrlin Cables Most Hopeful.
lonays cables from London, Ber- |
I'm and Paris quote foreign bankers
attending the Paris conference which |
is Just starting. as being hopeful that |
s4,5OO,000.000 German loan can he |
tloated. I,O0O,OOO.O0O in this country. |
the Berlin cables are the most hope |
ful or all. Naturally Germany would |
like to float such loan, using part of |
the proceeds to satisfy French repair
atoms payments. But how would our
investors look on this plan for put
ting up the separations money for
France which Germany says she cam
not raise at home? Until a satisfac |
tory answer can be had to that uues-
ton IL VIII not be safe to assume
mat any large amount OF German |
bonds can be sold here Far-sipbted
international bankers may he round
In wall street who are OF the beIirf
that the German reparations paymcnt
problem Will be solved In the end hv
revision downward of the amount
fixed France accepting what Ger
many can he made to pay
In view of the freight rate rulipp
handed down early today by the Inter.
state Commerce Commission. Wall
street was very much Interested In
II n n Inc