The Republican. [volume] (Oakland, Md.) 1877-current, 1889-11-23
Railroads Making Money.

Street were little larger the stock
u.arket would nave responded with
much more viyacity to the healthy
of general trade and the
very large earnings OF railroads.
which are now without parallel,
and which promise to show steady
increase, not only for the rest of the
year, but the first quarter of the year
TO come. For the first time in three
wears the country has bOuntiful crops
and they are already giving life and
energy to trade such as we have not
seen in three or four years at least.
We have ceased TO figure whether
any one crop is the largest ever
known, for we have the absolute as
surance that the average of the
American harvest for 1889 will be by
far the largest ever known. We
shall have more cotton and corn for
export than ever before in any
single year, and oats are actually
cheaper than hay. Already the vol
une of exports is beginning to swell
to an unexpected figure, and very
little shortage in wheat is lost sight
of in the increased demand on ac-
count of the falling off in other conn
tries. While all other crops are bet
ter than ever, the loss in wheat Is
less than any other of the wheat
growing countries. An export OF
cotton surprising all previous figures
and exports of cattle and provisions
during October of nearly 20 per cent.
in excess of those for the same month
last year, are already beginning to
I tell upon the money market. No
one will say that it is a bad sign
when people are so actively engaged
| in legitimate business that they have
little time to watch the Stock EX-
change quotations and to take advan-
tlge of the improved condition of the
great competitions for whose sPcuri-
! ties Wall street records the market
value.
Investors as well as spectators are
altogether too apt to overlook Mr..
MicaWber's fine distinction between
atfiurnce and misery. The fixed
charges, the relentless demands of
| the money lender who calls for the
interset on his bond, and the operat-
ing expenses, take up very large
percentage of the gross Income #
railroads at any time, anG when rates
are low and business light the earn
| ings too often prove insufficient to
meet these requirements. AS Il com
pensation, when business is active
and rates we'll maintained the income
of the road may increase rapidly
without anything like correspond
ing increase in the expenses, and
then the stock holders have their turn
! to smile, Better rates enable the
| Union Pacific to show handsome
increase in its profits with slightly
less gross earnings. The Oregon
! Short Line and Utah Northern have
a much larger percentage of net
/ profits than in gross earnings. The
Illinois Central, with only 20 per
cent. increase in gross earnings. is
able to show net earnings nearly so
! per cent. greater than for the same
time last year. II is also important
| to note that during the past year or
two of forced economy railroad man.
ayers have fully appreciated the
necessity of maintaining their track
equipment and motiye power as
closely as possible to the highest
! standard. for the reason that business
! could not he conducted at these low
rates unless handled with the best
facilities and with machinery capable
of motion at a minimum of cost.
There never was great activity in
the iron trade without correspond
ing life in general business, and 80 it
is a pleasure to know that the United
States has at last taken the first place
among the irOn-making natinns of
the world. The capacity of furnaces
IN blast is now 10 per cent. greater
than it was a month ago, and III per
cent. greater than it was year ago.
with Il prospect of still greater in
crease during the present month.
Our weekly production for the first
time surpasses that of Great Britain
and yet the consumption of iron has
increased much more rapidly in pro-
portion than the productive capacity.
Prices for nearly all classes of iron
have advanced during the week. and
steel rails, which sold at S2S ton
two months ago, were sold this week
at S35 a ton, a clear advance of %
per cent. In the face of very large
production copper has actually adj
yanced, but lead is a little heavy.
Money is easing up gradually, but
is still in pretty steady demand at 5
to per cent, with occasional trans