The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-10-31
mn roR1D,S esOw1ro WEALTH.

.Aive. the trhnshcLonb ioE tuo NV tul uhyb oh
-. vesk having averaged about S~00.o0Oshares
.S.y, or nearly double the average OF The week
I,ns No sound reAson can be assignedfo for
..oylval. and 1t must have been due only to
y. tnnstIence Of operators, and to their irro-
us..ihlo desire TO DO doing something and
~ ,bs chances Of the result. In fact. ell the
IA,r,snts are in favor Of caution and delay.
1.sone IA threatened with . general war. and
Ishoms serious doubts prevail as 10 whether
tS.,t Congress and the next Administration
uot he favorable to free, silver and thus
p"A.,,ze enterprise by an attack upon the
Itaadard OF value. Speculation is, however,
.u.snlntion and prefers uncertainty : . GER
.s,n,y which leaves no room for . difference OF
nnlnion about the future.
Vyrh TN decision OF the Supreme Court Of the
rnt,sd states. promulgated on Monday. that
~ railroad Joint Traflc Association, formed
- nreysnt undue competition between the
Up,,rhk line railroads, IL unlawful. because
sSar,ravenes the provisions Of the Sherman
nsylTrnst act. had less effect than it other
81 would have had, upon the prices Of West
,n railroad stocks. from the fact that a force
..s,noer than that Of legislation and the courts
inDg AGO accomplished the result now declared
~ he required by law. For months past q wal
oirates has notoriously prevailed between the
MAS embraced by the association. Just as II no
,uch association existed. and how greatly 1t
has injured the business OF the belligercnt
sompanies Is shown by the decrease In their net
earnings. which. In the case OF the New York
Central during the quarter ending Sept. 81.
vas from $4.756.47 in 1897 to $A.376.714 In
1909 and which. In that Of the Erie. occa-
,Ioned talk about another possible bankruptcy
md reorganization. The decision OF the court
~ therefore not a death warrant but IN order
nv decent burial. which will doubtless be exc
sn,ed with due solemnity. Meanwhile. the
saln-carrying railroads are expected to profit
nv the increased demand In Europe for our
hreadstufs, created by short crops there and
nv the fear Of hostilities between France and
Great Britain. The larger volume OF freight
Tina thrown into their hands may enable the
rompanIes to dispense with the rulnous rate
emitting to which they have lately been obliged
m resort, and thus for q little while. at least.
they may get, without the help Of the defunct
Traac Association. all the benefit that device
was Intended to secure to them.
II would naturally be supposed that. with the
convincing demonstrations OF the more than
~IruHeency OF the present means Of railroad
TRANSFORMATION across this continent. afforded
byr recent experience. capitalists would be shy
~oicrsatlng additions to them. Such. however.
does not appear to be the fact. Every little
while we hear Of schemes for paralleling exist
inR trunk lines, which are received with favor
and may. possibly. be executed. Thus, MIR.
Calvin s. Brice is credited with the intention
OF connecting the system OF railroads in Ohio.
which he controls. with others in this State. 50
asto make a new through line to this city. A
new coal railroad across New Jersey is also
projected. to compete with the Delaware and
-1-Anal 81 khA Nhtaa~1 oNI
Alton Railroad. to run from Chicago to st.
Louis, is announced. and it is almost certain
that the Atchison, Topeka and Santa Fe Com
pany will. in the course OF this year. have an
independent outlet Of its own to the Pacific
coast. Besides these. cheap electric railroads
are in course Of construction. all over the coun-
try, in competition with parallel steam lines.
These unnecessary and apparently ruinous
Investments OF capital are not confined to rail-
road building. We have Just seen how the
sugar refining business has been invaded by
new undertakings which can succeed only by
greatly impairing IL not altogether destroying
the profits Of the reflneries previously estab-
lshed; new distilleries. new tobacco manufac-
tories and new gas companies are constantly
Swinging up to compel a surrender to them Of
aIhare Of the business Of the old ones; and
only In branches Of industry where there is no
visible profit, such as the manufacture Of cord
age and Irvine. is there an absence OF threat
ened rivals to the concerns already engaged in
them. or, as in banking. a reduction Of the
number Of institutions by consolidation. or by
liquidation because Of insolvency.
All over the world q similar condition Of
things prevails. The constantly rising food OF
unemployed capital is not only forcing its way
into the old channels. but is making for itself.
IA far no noeaihla naw Onaa Iandapa hovo
been competing with lenders. until the rates Of
interest have been brought down to a level
never before known and once scarcely even
thought possible. Borrowers. like the United
States Government, whose credit is good. can
not come into the market without having the
none they ask for offered them many times
over Real estate mortgages In this city. once
regularly made at z per cent. per annum, are
nov easily negotiated at 4 per cent. the city's
PONDS at 3S per cent. command a premium;
and, as was remarked in this column last Mon
day, railroad companies. which formerly were
glad to get par for their z and & per cent. bonds.
can renew them by hundreds Of millions and
ior hundreds Of years at 81 and 4 per cent.
The cause OF this abundance and cheapness
Of capital is both an increase OF supply and q
decrease OF demand. The worlds capacity for
producing wealth has outrun its capacity for
Employing II. and the usual consequences of IN
oSerstocked market follow. For it must be re-
membered that capital does not consist Of
money alone. but Of both money and the things
mat money can buy. and. Of the two. o 10
Dy lar the smaller and less important element.
Besides the gold and the silver which human
Moor has produced during recent years. and
winch IN the form Of coin. have been added to
te common stock Of wealth. we must reckon
eapital all the other products Of human labor
which have not been required for the subsist-
ence Of the laborer. and which serve as new in
.ruments OF productive industry. Thus, COM
mooltles OF all kinds stored for future use and
'e whole array Of a nations machinery OF
manufacture and transportation constitute a
sApltal oil vastly greater value than its gold
'I1 silver coin and paper money.
nhen this North American continent was
discovered by Europeans 1t was inhabited by
vnp a lew hundred thousands Of savages, who
u,eu US hunting. fishing and a little filling OF
%esol' Their energies were devoted entirely
~proNdlng themselves with the means OF bare
suosstence. and their numbers not only did
.e increase but were frequently reduced by
.,auihe and the sickness that accompanies