The Minneapolis journal., 1903-12-19
The Week in Business.

Standing out at this time with
lures, each of unfavorable bearing
upon the industrial situation, is the fact
that the railroads Of the country are
as yet doing comparatively little in the
way of providing for betterments in
the coming year. The systems en-
bracing the greatest mileage in the
west are said to have placed no i'm
portant orders to date for steel rails
for 1904. A year ago, in mid-Decem-
ber, new contracts for steel were on
an enormous scale. The railroads
bought thousands of tons, additional
to the many already booked, and when
1903 opened, a most encouraging fea-
ture was the announcement that the
steel rail mills had oversold their ca
pacity for months ahead.
The tendency now noted to go
slower has afforded ground for unfa-
vorable inference. 1t has been as
sunled that the railroads are actuated
largely by a policy of extreme conserv-
atism, based upon doubt as to the
volume Of business likely to accrue to
them in the year to come. This would
appear to be a popular theory, but 1T
is a very unfavorable view to take,
and is scarcely warranted by actual
tiles. That railroad management has
been in some degree influenced by
the tendency towards quiet retrench-
ment, now general the country over,
is not to be doubted. But require
ments are in this respect not much
less now than they were a year ago,
and the scarcity Of large rail contracts
at this time means, not that none such
will be made, but rather that an i'm
mense volume of new business may
be thrown over into next year.,
This vast industry is in an unset
tied state, very much disturbed yet not
demoralzed. There is a contest on
between the steel mills and the rail-
roads, the latter contending for a price
of s26 which, to this writing, has not
! been granted, despite the meeting Of
steel men this week to consider the
| matter, and the more general belief
| that cut must eventually come. Iron
| trade authorities incline to the opin-
| ion that a general Improvement in
the industry will follow the turn of
the year, altho it is unlikely that for
mer activity will be equaled for some
| time to come. .. .-.. 5l-, IT. ....
| Meanwhile the steel corporation has
| planned a wage reduction, effective
Jan. i, that will include 80 per cent
Of it's employees, or approximately
| 100000 men. In the coke regions
| 10000 men have had their wages cut.
| These are bad reports, yet by no
means alarming. A year ago, and
for some time previous, wage advances
were the order Of the day. Present
reductions in a ajority Of cases are
about even with, or very slightly in
excess of the last advances. Many of
the steel workers own their homes
| and are not without moderate re-
sources, and in the coke regions it is
to be noted that cuts in wages have
been in part offset by reductions on
commodity prices in the company
stores.
| IAS IiS ySdl vi avs ~ oil SllU itpOILS
of the closing of industrial plants are
more numerous. In some cases this
means lighter orders and the neces-
sity for lessened production, but other
instances, as the prospective closing
of the anthracite mines on the gath
| inst. and the probability Of some
what lighter flour production in Min
| -
currence without significance.
The prediction made some weeks
ago that the return flow Of money to
the east would be late, is being borne
out. Altho more money than ever
before was sent out Of New York to
has yet returned, and the SOUTH with
it's high cotton, is still taking occa-
sional round sums.
Easy money in the east under such
conditions is accounted for by the
heavy gold imports, the total on the
movement to date being $17,0OO,OO0
with over $6,000.000 yet to come. High
1 cotton meanwhile continues to work
wonders in increasing the balance in
our favor abroad, the cotton export
for the month to Dec. 1 showing a
value larger than ever before known
in a like period.
i Wall street appears to be going
somewhat upon an assumption that
the first Monday in February viii
bring the decision in the Northern
Securities case, and the ultra conserv.
atives of the street are now question
ing the possibility of any substantial
rise in values until it is known wheth.
er or not a decision adverse to the
company will mean similar suits
against the anthracite coal combine
and the Pennsylvania railroad.
4 The grain trade has had the benefit
of a. number of reports of a bullish
mature concerning wheat, and the sit.