The Saint Paul globe., 1901-08-19
SITUATION IS BETTER
FAST WEEK HAS WITNESSED PAR
TIAL RECOVERY OF CON-
FIDENCE AND VALUES
ANXIETY OVER CORN CROP
Grooming of Railroads Into Few
Great Systems Adds Immensely
to Their Stability as
Investments.

In his weekly review Of conditions in
Wall street, Henry Clews notes graf
ifying tendency toward recovery OF con-
fidence and values based on the assump-
1ion that the steel strike will be snort
lived. He says:
The past week has witnessed a par
tial recovery in confidence and values.
The steel strike is waning and losing
its shock upon the stock market; the
defeat of the unwise demands of the
Amalgamated association being fore
gone conclusion. Once again labor is
experiencing the folly of strike and OF en-
trusting their cause to men or radlcal
and emotional tendencies. Some DAY
they will choose leaders with better
Judgment as to what is attainable ana
what is not, and men capable of rec
ognizing the rights of employers and
non-unionists as we'll as their own
claims. The collapse of the ill-adv1s2d
strike, when it comes, will be due TO the
honor of the workngmen who refuse 10
break their written contracts with Their
EMPLOYERS Mr.. Shaffers peculiar IDEAS
about the observance of contracts fortu-
nately are not shared by the rank and
file of those whom Lincoln called the
plain people.
The crop situation is stiH a subject
of much concern. Heavy damage to the
corn crop must be conceded; but 1t IS
altogether too early. to form any re
liable opinions Of the exact yield, and
it is doubtful if the highly pessimistic
accounts lately circulated will be real
lied. More or less Improvement has
taken place during the last ten days,
and il must be borne in mind that the
early damage reports were much eXag-
gerated The farmers were in a panic
and their habitual tendency to make the
most of crop failures was lntenslleu
by prolonged anxiety and neat Re-
cent reports from well-informed DanK-
ers and merchants show that the ln-
iurv and its consequences will be less Sc
I.icIs than at first expected; there be-
ing several compensaions, such as bet
ter prices. good wheat crop, a fair sup
p1v Of fodder and good financial condition
of farmers, to largely offset the loss
in corn. In spots the loss will be severe;
in general, however, the effect Will not
be disastrously serious, though a consld-
erable number of farmers will neces-
sarily spend less on Injuries some
railroads of course will feel the loss IN
traffic appreciably; others will not, and
larger traffic in other directions Will TO
a considerable extent compensate.
The course of the market for the last
few weeks, though disappointing to over
confident bulls, is easily explained. Prices
" ere exceedingly high in June ana July
and might have been carried still higher
rad not the speculative fever met with
a timely check. The Northern Pacific
blow followed by the strike and the corn
crop failure, effectually stopped any fur
ther speculative eXcesses. These events
coming when they did caught principally
the big affiuent combination holders OIL
stocks, as mary Of the important deals
which they had under way were still IN
complete. Hence the market has been
,,11, .I,.N1 nd m
meet the changed conditions, all sharp
declines meeting naturally under the cir
cumstances with strong inside support,
so that public confidence should be not
too much disturbed. Prices of many rail-
road stocks are still high, judged by the
dividends which they return, and by the
fact that general business activity mas
touched high-water mark. But this Is
not the only influence controlling values
at present, for it should be remembered
that the entire railroad system OF the
United States is passing through pro-
cess of Capitalization that has a most
important bearing upon values. The
grouping of American railroads into a
few great systems, which promises to be
soon completed, adds immensely to their
stability as investments. Ruinous rate
wars are very probably thing of the
past. and roads which have been doing
the dividend-paying list. Watered stocks
have either been eliminated by reorgant-
cation or paid for in Outlays from earn
ings. Our railroads were never in better
physical and financial condition than to-
day, and their prospects as dividend pay
ers are excellent. Very few are paying
all they earn, consequently any moderate
reduction in gross earnings would not
affect dividends, for the reason that the
present large outlays for new equipment
and improvements will not be permanent
Conservatism has been the rule in rail-
road management for the last few years
and stockholders have been getting the
advantage of this new policy. Plans for
railroad consolidation are not by any
means complete. One combination forces
another and the present movement is not
likely to end until the whole country has
been divided into groups this being the
ultimate result predicted years ago by
far-sighted practical railroad men, This
tendency need cause no concern in the
public mind, for suitable legislation will
certainly be devised to control the powers
of these great railroad magnates. Pub
lie ownership of the railroads would
plunge US into a sea of unknown forces.
National supervision could readily be
made sufficiently effective to prevent cor
porate abuses.
Ihe future of the market appears some
what encouraging. The country is still
prosperous; there is plenty of traffic ~
slght for the railroads for the balance
OF TINS year at least, and we are likely
to have a good export demand for our
surplus products of the soil The farm
ers as class are sure of a year of more
IMAM average though not record king
prosperity. When the next upward movee
ment in stocks begins the lower priced
securities are likely to be made more
active as the old favorites are now so
nlsh as TO call for prudence in handling
them. advise for the present n1a1-ine,
only quick In and out trades. and MOI
ouylng for very long holding. 1t is going
10 be good trading market berea fteT
simply to catch fiuctuation differences.