The times. [volume] (Washington [D.C.]) 1897-1901, 1900-06-18


Surplus rts sl7 i9s $50 SSo,0oS 200 $50, 212, s0l
ket man that there is anything left of the
sugar war in the face of an advance in
Sugar stock while the entire list besides
has declined, though some people still hold
10 the opinion that there has been no set
Element oflsthe war. OF course, actually
there is no war at present, no matter
what the personal feelings between the
sugar magnates may be. War means cut
ting of rates. At present the record is Of
steady advances in rates. concurred in
with great unanimity by the entire trade.
What the future may bring forth is an
other matter 1t is possible that another
war is contemplated. One theory is that
Mr.. Haremeyer has an immense stock Of
sugar on hand for the busy season and
that he has advanced rates to get rid of it
at a good profit. This theory gives him
credit for intending 10 cut rates again as
soon as the other refineries have started
up and begun to turn out sugar rapidly.
President Cowen of the Baltimore and
Ohio Railway is considered one of the
most astute and strongest men in the
railway world. His record with the Balti-
more and Ohio has been unique in recent
railway history. He is one of the men
to smash. He said yesterday: There is
no doubt iron prices have been too high;
they are still too high, the recent reduc-
tons not having brought them down to a
basis warranted by business conditions.
They will have to go still lower before
they meet with a good buying demand.
suppose that this readiustment of values
will consume the next sixty to ninety
days. but after that look for a revival in
all classes of business, which will make
for as great activity as at any period in
the last few years. The extraordinary ad-
vance in iron prices has checked the de-
mand. but it is only temporary. until
proper level Of prices is reached. There
are only few sections which have had
any setback. In the Northwest and in the
Ohio Valley wheat seems to have been
badly damaged. But the effect of this
crop injury cannot be general. 1t will not
affect the purchasing power OF the cOun-
try as a whole. Mr. Hartman, Chairman
of the Union Pacific said to me the other
day that II a line were drawn west from
Chicago and then south along the Illinois
Central it could be said that the whole
district west of such a line was never SO
prosperous as at present. The South is
making remarkable progress. Those who
have not followed its growth closely have
developed. ~ General Manager Cannon of
the Southern Railway said to me the other
day that the South was now making every
thing ii needed. 1t may be doing 1t only
in a small way as to many products, but it
is turning out all that il requires in some
quantities. The growth in cotton manu-
featuring is well known, but Mr.. Cannon
said he could show me wooden and silk
mills and other factories. The prosperity
OF this country has not ceased. With the
inevitable reduction in prices the former
demand will be renewed. l have no doubt
of that believe it will continue Just as
it has been in the last few years. The re-
action we have BODIES mere furry. The
greater part of the country is more SUBJ
stantially prosperous than it has ever been
before"
The bears go SO far as to say that the
failure of the Northern Pacific directors
to declare 4 per cent dividend is the be-
ginning of the decline in railway returns
to stockholders and that it will be follow
ed by general dividend cutting throughout
the list
There was nothing whatever in the ac-
ton of the directors to warrant any such
belief. On the contrary, the reports of
the Northern Pacific Railroad for the last
six months show very gratifying in
crease over the corresponding six months
of the preceding year. The railroad is in
q position TO pay the full per cent and
President Melien IS authority for the
statement that had such action been taken
by the board on Friday there would still
remain an estimated surplus of 100 COO
Mr.. Mellens statement, which is generally
accepted by thoughtful men in Wall
Street as showing full justification for the
action Of the directors. is as follows:
THE ere. 3 in the Northwest are not
looking MS well as we would like to see
them and. this being Presidential year,
the directors of the company decided to
follow conservative lines in the matter
of the dividend. If We had declared a
dividend at the rate of per cent per
annum we would have had a surplus Of
81. eco. COO. The road is doing splendidly,
and If in six months favorable conditions 4
exist, it will be time enough to place the
common stock on a permanent dividend
basis The dividend declared Friday was
not specified as being quarterly or semi
and It does not cover any stated
period"
There will be a meeting called In New
York In a few days by the special commit
tee appointed by the Western railroad
presidents to look after the rate situation
in the Kansas City territory of the general
freight agents of the Kansas City lines
east bound, for the purpose of discussing
The best means Of restoring rates.
1t is the purpose of the presidents COM
nittee to have the general agents take
hold of the rate situation, check the de-
and bring about restora-
lion as soon as possible.
AI- SAVES /snv;SH a,.sas.