The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-12
THE SUN. MONDAY. OCTOBER IL, 1908,

fung at them. a. now. at price concessions
OF 80 and $50 q share, certificates Of owner
ship in their country's leading and standard
railway lines.
What Wall Street mostly talked about dur
ing the week was the reduction Of the div
idend on the common stock OF the United
States Steel Corporations; but the really I'M
portant development Of the period was the
accumulation of evidence that money is
going to be cheap for an indefinite period.
The reduction Of the Steel dividend was
plainly foreshadowed by the fall in the
price of the Steel Corporations stock.
and it was as plainly justified by
business reasons. The overproduction ana
decreased consumption in the iron ana
steel business, present and future, are, now
, ever, being greatly exaggerated. The best
judges say that pig iron. II not already
at cost figures, is nearly there, and pig
iron curtailment in production at the rate
Of million tons annually Ia now under
way. The Steel Corporation is adopting
the wise policy Of closing such of it's plants
as produce only at comparatively high cost,
and is otherwise limiting production in a
thorough way only possible under such
concentrated management az that which
the corporation enjoys. A good deal OF
building, track laying and other construc-
ton requiring the use OF steel materials
has been halted or postponed, but 1t viii
be resumed and inaugurated in duo sea-
son. Several large Western railroads have
already renewed contracts which. some
months ago, were suspended. The mem
bers Of labor unions will see that II they do
not consent to wage scale by which their
employers can live as well "a themselves.
there will be no wages paid at all; and the
growing ease in the money situation will
allow the use of funds as before in building
and similar operations. 1t is too soon to say
that we are absolutely out Of the woods
as regards money difficulties, but the way
the matter seems to stand now ia that Wall
Street. having prepared with great elabora-
ton for a money stringency in the autumn.
finds that there is not going to be any
stringency, or even any closeness OF money
rates Such is the belief, at all events, OF
the leading money lenders here and in the
other large Eastern cities, and these men
and institutions are beginning to hurry
around and endeavor to loan out sa1eiy
the funds that they have so carefully ac-
cumulated. The Wall Street commission
houses having similarly prepared them
selves with loans on time and carrying
few stocks for customers are but small Dor
rowers. What must be the result of all
this? 1t must force an investment, first
in bonds, and secondly in high grade stocks,
and it must, if ii runs its usual course,
produce higher prices finally for the more
V,,Iy froYy, the mi
ket of last week, it would seem as II the In
vestment in bonds had already begun.
Two railroad reports that were made
public during the week deserve especial
mention here. For fully year back the
financial affairs of our great local street
railway system have been the subject OF az
widely disseminated falsehoods as have ever
been known in the history OF Wall Street
The impression has been SO sedulously
conveyed that these affairs were not in good
shape that scores Of people not having
the slightest knowledge OF the subject came
to speak of the Metropolitan Street Rail-
way Company as earning only 5 or
even per cent. upon it's stock, as II the
fact had been publicly established and
conceded Yet the annual report Of the
METROPOLITAN Street Railway Comranys
lessee, the lnterurhan Street Railway Com
pany--e report than which none could be
moro complete or ietailed--proves that In
spite OF all the obstacles In the way Of
proper operation OF the system last year
! the Metropolitan Street Railway Company
earned all but rrifirg fraction Of the
per cent, dividsnd guaranteed upon it, The
matter 10 valuable for its illustration OF
the true character Of many Of the trouble
| stories' which Wall Street has recently
had on it's hands. The showing made
BY the Erie L. not go remarkable for
what was actually done by the company
, last year-although the net result OF this
was the accumulation Of net earnings equiv
, alent to ~ per cent, upon the Erie's common
stock-as for the radiant promise clearly
contained in it Of the development Of the
Erie's property in future. Finally. the
Government statisticians late last Saturday
afternoon declared that the condition OF
the country's corn crop had actually i'm
proved in September. fact almost without
precedent in the records OF the Agricultural
Bureau The damage done by the frosts
early In the month was, in other words.
more than made good by the general i'm
provement in crop conditions caused by
the long days of warm weather that Nature
SO kindly sent later on. The reports OF all
the private crop bureaus wholly agree with
that of the Government. 1t is now certain
that we have a corn crop this year OF at
least $50 ,OOO, 900 bushels, and that 1t will
be marketed at good prices. showing
no less brilliant Is made for wheat What
must be the dismal forebodings of the
Western farmers because Of all thisl What
niggardliness in expenditure, cramped
household and business economies, and
general financial desolation are now immi-
nent in the agricultural sectionl And how
gloomily must the Western railway mana
gers be calculating upon meagre tonnage
and starvation tariffs!
DANIEL F. KELLOGG.
FINANCIAL AND COMMERCIAL.