The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-01-04
A FAT SEASON FOR RAILROADS
LAST YEAR ADDED $4,000, 900 900 TO
THE NATIONS WEALTH.
Pierpont MOrgan's Irritabflity Causes
Gossip-Talk of Another Trans
continental Railway Line.
pecial to the Indianapolis Journal.


ago the New York financial district was
the gloomiest spot in America. Nine out of
ten spectators were apostles of pessimism
and were going about with long faces. fear
ing calamity and universal destruction of
values. Cheerfulness has taken the place Of
gloom, and the street" begins the new
year blithely. 1t is now seen that the
troubles and distresses complained Of were
to a considerable extent local and incident
al to forced readjustment of credits repre-
sented in the loans of banks. With the COM
pletion of that process which involved the
shaking out of the public for more than
500, 600 and the transfer of that vast sum
to the strengthening of the syndicates and
the shifting of large floating Indebtedness
from London and the continent over upon
the shoulders of New York. local conditions
are decidedly improved.
The miscellaneous public has not returned
to the stock market en- masse. 1t was too
busy nursing the wounds inflicted by the
compulsory liquidation of the past three
months to observe that values were hard
ening and quotations climbing up again.
During the past fortnight many active
stocks have recovered at least one-half of
the shrinkage of the previous ninety days,
and the whole list has advanced consider
ably. The bulk of the new buying thus far
has been by insiders and friends of insid-
ers, and those having special sources of in
formation of manipulative projects and
pool operations The organization of the
$50 100000 market protection pool was the
first open demonstration by the big people
Of the street" that the decline had gone
far enough, and that it time for a
change of front. Since then the course Of
prices has been almost uninterruptedly up
wards. There have been a few unimportant
reactions due chiefly to profit-taking by
the speculative contingent, but nothing to
check the general sweep.
People are taking notice of favorable de-
velopments and giving them proper rat
ing marketwise, and reversely they are at
tachng less Importance to the daily budget
of gossip concerning shiftings in money. 1t
is recognized in financial circles that with
the increased volume of farm deliveries Of
grain and the consequent enlarged traffic
of railroads the long-delayed flow of money
to the East is on. This is shown in the in
creasing softness of longtime interest rates
here Borrowers are no longer anxious to
enter into three and SIX months arrange
ments for money at high figures, and lend
ers quite willing to make concessions
in quarters where, a few days ago, the
front presented was grim ana lIlHeXlDle. 1t
is also noted welcome development that
imports of steel and iron are on the decline,
while exports of corn and other commodi-
ties increasing. The trade balance In
favor of the United States for the full cal
/ erdar year will approximate $3.50, 600 600.
This total, great though it be. Is SO much
much unfavorable comment was provoked;
to hear the discussion over that issue one
would think the entire balance was wiped
out and that the United States was actu-
a
1t is more than likely that the record of
1908 will show at least $5OO,0O0O00 in our
favor. The only thing tc prevent this will
be the reduced buying power of the old
| world on. account of business depression in
Germany, Great Britain and elsewhere.
However, conditions in Europe and Great
Britain are improving, and as our chief
customers become stronger financially they
may naturally be expected to buy necessi-
ties liberal scale.
The government estimate Of the farm VAL
ue of products Cotton excepted) at 81 6OO,-
100000 affords statisticians basis for the
calculation that tillers of the soil will real
ize net profit Of over S1,OOO,0OO0OO on the
year. 1t is roughly estimated that 60 per
cent. of the total commercial value of agri-
| cultural products at first hands represents
cost and 40 per cent. profit Add to this
SIPS 900 900 to s15OOOO, 600 profit on cotton and
| the enormous returns from mines, oil
| fields railroads and manufactures, and it is
very safe to say that at least $1,000, 0O0, 600
was added to the actual wealth of the coun-
| try during the year 1902. This vast accre-
| ton is regarded by solid people of the
| financial and business world as a very sub
| stantial foundation upon which to begin
building for another year of prosperity.
| The next five or six months will be the
fat season for railroads. Earnings, both
| gross and net. are expected to show up
| magnificently. BY the first of February the
public may be expected to realize fully the
bright features of the situation in Its
| broadcast form. Popular sentiment may be
| relied upon to find expression and refiec-
| ton in the stock market. 1t always does. A
| knowledge of the underlying facts gives
| fnanciers and market leaders unbounded
| confidence in the future. They are looking
| forward to grand spring boom. The only
/ thing which may check the movement or
| bring it to an untimely end will be the pre-
mature unloading of syndicate and under
writing holdings of securities which they
have been Obliged to carry through the
| stringent period. 1t is altogether probable,
| however, that the process of distribution
| will be gradual and that the unloading will
/ be done in a way to avoid disturbance.
Calamity preaching is becoming again un-
popular in Wall street. Prophets of evil
who can only see in fair weather signs of
! storms find no audiences. Clear days are
/ no longer regarded as weather breeders
and forerunners of disaster
/ Xxx
| Mr.. j. Pierpont Morgans irritability con-
/ tinues to be the subject of Wall-street re-
| mark People are beginning to say of him
/ that he is the most even-temepred man in
| New York-always mad. He has had big
load to carry, and sailing has not been al
| together smooth for him. He has been
| roundly denounced by holders of steel
| trust stocks who are some way inclined to
hold. him personally responsible for a
shrinkage of s150.000.000 in the market value
/ of the preferred and common issues. Much
/ of this talk has reached his ears, deaf
| though he seems to be- He makes no con-
cealment of the fact that he is in i'll humor
over the reception accorded his internation-
/ al shipping trust deal. He is also outspoken
| to his intimates over the unpleasant noto-
riety which attached to him IN connection
with the coal strike. and altogether he
| feels that he has ground for being sore
against the world. Mr.. Morgan is extremely
/ Sensitive to criticism and attack. although
/ he pretends to be Indifferent. He Is un-
/ admittedly thick-skinned to a point of cal-
Io,Isness when IL comes to vulgar abuse
hut when he recognizes there may be
ground for adverse comment on his deals
\ he shrinks from the gaff like ordinary NOR
tails If the market should have a great
| boom as now seems within the possibili-
i ties. the Morgan temper may improve. His
friends hope so.
Earnings of many OF the Western roads