The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-11-17
THE STOCK MARKET.
Why Ii Is Not a Safe Guide as to Pre-
vafling Business Conditions.

New York Times.
We do not know whether there are still
any capitalists in London who buy Ameri-
can stocks, either on margin or for invest
ment. We presume there are no longer any
such persons to be found in London. They
must have all gone mad or have been dis
abled by nervous prostration, in conse-
quence of their attempts to follow and I'M
derstand the behavior of the New York
stock market.
For instance: Yesterday mornings news
papers printed a statement that the Penn
sylvania Railroad Company had granted an
increase of 10 per cent. in the wages of all
its employees receiving less than $500 a
month. About 105 900 men are affected, and
the aggregate increase in their wages will
be several million dollars. In recommend
ing this increase to the board of directors
President Cassatt is reported to have made
an explanation substantially in these
words:
The country is passing through an un-
exampled period of prosperity, and, as far
as the Pennsylvania is concerned. this pros
| perity is bound to continue for at least two
years, IL contracts are kept. 1t is time that
our employees be given a share In this pros
perity. All the railroads In the United
states and all employers of labor are con-
templatlng an advance In wages. The cost
of living has increased 20 to Is per cent,
but wages have not increased accordingly.
This movement is bound to come, and the
pennsylvania may as Well lead as follow.
We have more business offered than we can
handle, and can't see our way out of the
trouble unless We keep our men loyal 10
the company and help them while they help
us. 1, therefore, recommend a fat increase
OF III per cent. in wages, and advise that
THIS announcement be made to the en-
ployes first and to the public later"
what could a London operator" believe
or think or say when, having before him
this clear evidence of railroad prosperity,
which other widely known facts prove to
be general, he observed at the close of our
Stock Exchange that Pennsylvania Rail-
road shares had suffered a loss of 2s
points as the result of the days proceed
ings In that highly logical mart? Railroad
earnings and other similar criteria of trade
conditions reveal the great prosperity of the
country-they give proof of the great earn
Ing power of its industries. Yet the table
or Stock Exchange transactions wears a
veritable panic aspect.
Of course, 1t Is easy to find explanations
for this state of things, explanations which
do not particularly impeach either the
sanity or the morality of the enlightened
gentlemen OF the Stock Exchange. The ex-
PLANTATION is heard that the group of wild
men from the West with no respect for the
rules OF the game, who burst upon the mar
ket some months ago, and are accused of
hlghly reprehensible conduct in keeping
quotations far above their legitimate level.
have now been forced to unload, sell out,
or IN some way get out. 1t is said, too, that
the bears are just now unusually numerous,
large and predatory. But whatever may
be the truth as to that, must il not be plain
to everyone that the Stock Exchange is
capable of detaching itself from prevailing
conditions OF trade and industry to an ex-
tent which makes Ii no longer a useful or
a safe indication of what is really going on
In the United States of America?