The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-12-04
A Healthy Decline.

Writers Tor eastern financial publica-
lions who deal with figures and try to
discern future changes in economic ten
denotes from the statistical changes in the
commercial news Of the day, are calling
attention to the decrease in the number Of
new railroad and industrial corporations.
The figures for all companies formed dur
ing last month in the principal incorpora
ton states, show a total new capitaliza-
ton of s129, S79, OO0 When the records of
last year are referred to it is found that
in the corresponding month last year The
number Of new corporations formed in the
same states. represented capitalization Of
$5S7,302, 900. This Is a tremendous falling
off, and it forms the basis for some rather
ence at first sight being unfavorable.
If so much more Of new enterprise or
new combination or consolidation
Of old business was effected in
November, 1901. than in Noven-
son for the belief that the tendency to-
Der, 1902, there would seem to be rea-
wards business expansion is passing. Yet
arguments based on such a view might be
very misleading. November, 1901, was a
remarkable month with respect to the
formation of new companies, for in that
month the Northern Securities company
was organized. This one corporation rep
resented capitalization of $400,00O,000. If
this be taken from the total for that
month it will be found that the remaining
companies represent capitalization Of
$1S7, 900, which by comparison with the
$129,379,O00 does not represent falling
off In such degree as to indicate anything
vitality important, since a variation might
be found in comparisons with any months
which would be reserved by the figures
for other months. - :
The fair Interpretation Of these figures
is probably this, that they represent not
so much a change in the tendency towards
consolidation or any fear or hesitation
| through lack of confidence in the country,
as a check to combination imposed by the
hostile agitation raised by the Northern
Securities merger.
That the industrial companies are still
reorganizing and combining is evident by
the number Of large companies recently
formed, the most important of which,
the Union Steel company with a capital
| of $50, 0O0 900, Is a matter of the past few
| days. 1t is fair to expect that a period OF
| unusual expansion will be followed by one
Of comparatively smaller development,
and since the companies Incorporated last
4 AJ<,1xy y-11
Maine and the country at large represent
| ed the tremendous total capitalization OF
! SO, 11s, SO4, 800, it is hardly reasonable tc
expect that such movement can be kept
up indefinitely And the most hopeful OF
the optimistic business expansionists dc
| soon.
| Yet every business that desires eXpan-
sion will go ahead, and every legal com
bination Of capital that may be desirable
will be carried out. If there is heavy de-
crease in the movement it will probably be
represented in the, figures for railroad
combinations. It is the opinion that hat
the Northern Securities deal gone through
without opposition on the part of the
people, other combinations Of similar
nature would have followed. But the
question of the legality of the merger helf
up these plans
| ALI of which argues not one whit agains
the continued prosperity and growth O
the country. The organization of new
companies will continue and the people
will raise no voice against them so Ion;
as they are not combinations formed i,
+ direct violation of established law an<
sound business principles.