Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-22

more UNIFORM IN the spring or 1vS
An increase in freight rates, amount
ing to as much as 10 per cent, Is pre-
dicted by Nathan L. Amster, instead Of
is per cent which the railroads are
seeking from the Interstate Commerce
Commission. It will be recalled that
Mr.. Amster was prominent in securing
for the railroads an emergency rate in
crease in 1881, and his views, expressed
after a visit in Washington, where he
talked with various transportation au-
! thorities, should certainly prove Of In
| terest.
Some observers are Of the opinion
that only half Of the increase applied
| for viii be granted. in which case the
carriers will endeavor to effect wage
reductions unless business picks up SUI
fciently to render such steps unnec-
eegary.
Legislation Is requested by 4. w.
Beatty, president Of the Canadian Pa
ciflc Railway, 10 protect the railroads
against severe competition from motor
buses and motor vehicles. According
to Mr.. Beatty, the TING has come for
the Canadian carriers 70 call upon the
various provincial governments TO es-
tablish control which will define the
|, sphere in which the two modes Of
transportation will function.
Something OF this character will have
to be adopted In the near future in the
United States II the country Is in
earnest about saving q situation which,
II permitted to break down, will have
the most far-reaching consequences
The amount Of capital invested In the
railways and the countless thousands
involved, directly or indirectly, make 1t
absolutely necessary to give serious
thought TO the railway question.
The increase In rates which has been
applied fer and the reduction Of ex-
penditures are not sufficient. Although
these measures viii help very rnateri-
ally, o way will have to be found to
solve the more fundamental problem,
and which resides largely In competi-
ton which, on the whole, does not APP
pear entirely equitable, because while
enjoying the privileges Of the carriers
the competitors do not share their re-
sponsibilities.
Blessing I'm Adversities.
Adverse earnings statements have at
least one redeeming feature. They are
Of hope and optimism over the future.
Similarly, when foreign governments
suspend payments on their debts they
do not neglect to assure the bondhold-
ers that they will some day resume
payments. It is, however, questionable
whether an optimistic statement by an
offcial Of . company can take the place
of q dividend on the stock held, or
whether the assurances OF govern
ment are an acceptable substitute Tor
cash on q due coupon.
There seems to be one vital difference
between English concerns and British
enterprises. In presenting reports, ex-
ecutives Of English firms would rather
dwell on the past. while their American
cousins prefer to delve into the future.
In any event, American stockholders
are not averse to listening to cheerful
remarks, and holders of Kelly-Spring-
field securities probably derive some
consolation from statement made BY
w. II. Lalley, president of the COM
pany, who reminds them that operations
are showing q progressive Improvement;
that operating expenses, both in manu-
facture and distribution, have been re-
duced, and that further economies are
contemplated.
Mr.. Ialiey adds that the company
continues In good financial condition,
free Of long-term notes and bonded
debt. and with bank loans Of only
$500 900, against three times that
amount at this time last year.
Paper Earnings Grow.
Due to progress made In reducing
operating costs. the International Paper
and Power Company reported distinct
increase In earnings in the second quar-
ter Of this year as compared with the
first, according TO Archibald J. Grau-
stein, president Of the company.
Although the volume Of business Is
still low and prices for the most grade
of paper weak, Mr.. Graustein views the
future outlook with confidence. He also
points to the improved fiscal position
Of his company, which has succeeded IN
reducing bank loans by 100000 dur
ing the June quarter, with further sub
stantial reductions expected during the
last half of the year.
Denials by Tidewater Oil ofdcials that
the company has committed itself TO
enter into the combination Of o num-
Der Of oil companies under the leader
ship of the Sinclair interests do not
mean that the deal has fallen through.
Axtell J. Byles. president Of the Tide
water Co., pointed out that the merger
question win be laid before the board
In the very near future. Should the
board decide that q combination Is
likely to prove economically sound and
that stockholders are getting an eQui-
table treatment, the matter would be
submitted to the stockholders for APP
prevail or disapproval.
Mr.. Byles' attitude II quite logical