AMERICAN RAILWAYS

Otago Witness, Issue 2934, 8 June 1910, Page 29

AMERICAN RAILWAYS

CAUSE -OF STATE INTERVENTION. LONDON, June 3. The Times' Washington correspondent, referring to the scope of the United States Government's move against 25 of the Western lines, says it strikes not only against the advantage rights but against the "whole system of railway committees and associations. It seems to indicate the initiation of lawsuits similar to those against the Northern Securities Company and the Harriman merger cases. The Morning Post's, Washington correspondent reports that the railways threaten that until the courts decide that rates may be increased new construction will be suspended, throwing thousands out of employment. The managers state that the high.cost of labour and the increased price of coal and oil necessitate higher rates. NEW YORK, June 3. Nearly every railroad in the northern portion of the United States has sent to the Inter-State Commerce Commission its tariff embodying the increased commodity rates. The July increases in the Middle West States range from 6 to 31 per cent., and in the others from 3 to 20 per cent. June 4. The stock markets are demoralised on account of railroad officers' : pessimistic utterances regarding-, the effect of the Government's injunctions. The president 1 of the New York Central-Hudson River railroad has declared that the credit of the American railroads will be almost totally destroyed, and that_.it will be well nigh impossible for ..any railroad to secure a loan. <- . The Senate passed the Railroad Bill -by 50 votes to .12: The unanimity was due to radical changes conciliating the insurgents. The Progressive Republicans claim that the victory was due to the elimination of the pooling and merger sections, and the adoption of many amendments in favour of the shippers. June 5. The Federal Arbitration Board granted 27,000 enginemen on the railroads westward of Chicago 7£ per cent, increase in their wages, instead of 12£ as demanded. Reuter learns that Mr George Perkins, representing Mr Pierpont Morgan, has arranged a conference of railroad presidents and shippers objecting to the increased tariffs. Mr Perkins told the presidents that they would do no good by talking of a panic. Representatives of the western railroads will meet Mr Taft.

According to Mr Hill, the railway magnate, the uneasiness in Wall street is largely fictitious. He denies that his

railroad is cancelling orders or discharging employees. June 6.

President Taft's action against the western railroads is due to their filing collective scnedules of increased rates, indicating concerted action and possibly a so-called conspiracy, while the eastern railroads were spared because individual schedules were filed. Nevertheless the eastern railroads support the western in the controversy. The New York Central Co. announces that it is cancelling orders for £600,000 worth of cars, also the postponement of improvements costing £1,600,000, and the discontinuance of negotiations for the sale of Michigan Central bonds in Paris for £3,500,000.

The great steel companies announce that the prices of steel will be "increased to the railroads if the freight rates advance.