Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1901-03-28
ISSUES A WARNING.
Break Sure to Occur in Railroad
Stocks,
REVIEW OF THE INVESTMENT FIELD
Henry cIews on the General Situation
and Railroad Stocks in Particular
is Well Worth Reading at This
Time-Rreak COMING.

1t would be well for the speculator
to heed the warning just issued by
Henry Clews concerning the phenome
nal rise in railroad stocks. He says
and common sense teaches, that a
break is sure to come.
HIS financial review at this time is
well worth reading, covering as it does,
in general way, the investment field,
He says:
Strong and feverish briefly describes this
weeks stock market. In the early part of
the week stocks rushed upwards with sur
prlsing unanimity; followed of course by
less unsettlement. The strength Of the
steel stocks was undoubtedly largely due
to the support of those connected with the
great steel amalgamation and its success
full issue. In the railroad market the
strength was due to more general and
more satisfactory causes. In the first
dented prosperity; earnings are very large,
showing liberal gains over the big figures
or one year ago: traffic is not only very
heavy; but It should be remembered there
rs little cutting of rates. and rebate prac-
tices nave practically been abolished The
stoppage OF these two abuses alone means
q. material aid to the dividend-paying abil-
tiles of many of the railroads, especially
tnose which are emerging from the period
of bankruptcy and reorganization Some
roads roat have lost millions, yearly thru Sc
be obtained, and shippers have no cause
for complaint. for rates are low and rea-
Ssonahle ana all are treated alike, favorit-
between shippers and railroads than any
other grievance:
The future of American railroad securi-
grown up to railroads built in advance of
their time; there is little or no chance for
duplication; heavy expenditures for i'm
provements, etc, made out of earnings,
CT
senting nothing but water an intrinsic
value they never had before; the spread of
tne community OF interest plan Will effect
economies and check destructive competi.
ton that must have an important bearing
upon net earning capacity of many prop
critics. Long-headed men are leading the
they are men, who see the dangers Of this
policy, as well as the advantages and are
OF opinion that the latter considerably out
M vn Il, me former. The present rise in rail
road shares Is therefore. based upon gen
uine prosperity. and upon the results of
more harmonious relations between the
various systems: these two influences COM
bined giving speculative leaders leverage
such as rarely offers.
Very likely the advance now under way
Will be carried to excess and the small
confidence carries him too far; but there
are many deals still in prospect, and until
t sheir consnmmation is near we do not look
ket is easy and shows no signs of disturb
ance. it being in the interest of big hold
ers to maintain low rates; Any decided
us to depend upon our balances in Europe,
which are large and at ready command.
Further, In case Of severe stringency the
some of the surplus funds which it has
been taking from the people thru the Gus
tom house and internal revenue, altho
there are no indications as yet of such
The trade situation is generally salts
factory. Here and there signs of reaction
from last years activity. such as in the
Is by no means general. On the contrary
there are reasons for believing that the
expansion in business will continue for
tivty in the iron trade shows no sugges-
ton of abating; the demand for steel and |
IRON products being very largely the result |
steel is being applied and to the great de-
mand for structural materials. Along the |
racine coast there Is wonderful develop
I msnt in progress not only in oil but in
other natural resources In which that re-
gion abounds. This development of our |
natural riches will be the basis of bust. |
ness expansion for some time to come, to
say nothing of foreign fields which are |
rapidly opening to American capital and
enterprise.
From now on the crop situation will be-
wheat is reported in good condition and |
farmers are holding much smaller stocks |
D1 wheat than usual. The stocks of corn |
IN farmers hands are also smaller than ut |
any other time during the last six years |
In the United States the growers of |
wheat, corn, cotton and many other agr-
cultural products are better off than for |
many years, and this affords a basis for
continued prosperity that should not be
overlooked.
Some concern was manifested over the
prospects of Il rupture between Russia and
England In the far east. Such sensations |
may be expected ut any time. Russia con
.inues her slow but irrepressibe policy of |
land grabbing. and seems determined to |
take from China considerable portion of |
her possessions: but she is more likely to |
accomplish her. purpose by maintaining |
policy of steady pressure. yielding when |
she must in preference to war. Russia |
With her tremendous schemes Of govern |
mental enterprise and heavy financial OBJ |
igations, Is In no condition for war.
struggle with Japan or Great Britain would |
involve Russia In bankruptcy and set her
back Il quarter of century.