The Mankato free press., 1905-02-24
BUSINESS CONDITIONS
BY Henry Clews.


New York, Feb. 20.-New high record
prices are being made almost daily A
strong undertone pervades the whole
market, and first one speciality is select
ed and then another with which to keep
up the appearance of activity. The
public's operations continue on very
limited scale, but professionals seem to
have little difficulty in marking up
their particular favorites. Conditions
aiding these movements are easy mon
ey, a universally optimistic spirit, bet
ter divided prospects, and rumors of
various deals, which are allowed to leak
out presumably to assist stock market
operations. No doubt important nego-
tiations are under way in some proper
ties, but some of the stories in circu-
lation have a rather ''nutty" flavor, hav
ing more than once served to aid in rn-
loading high-priced stocks upon the un-
treating some of the consolidation stor-
les which are being put out with rea-
sonable degree of skepticism; bearing
in mind that, while concentration is
steadily progressing in railroad man
agemeht, the real and important
changes are usually brought about un-
ostentatiously and are not divulged by
professional tipsters in advance.
A striking feature of the situation is
the abundance of funds seeking safe
investment on a per cent basis. In
1904 over $450,000,000 new bonds and
1922, 100000 new railroad stocks were is,
sued, total of over $670,000,000 rail
road issues. Since January | over $780,
100000 additional railroad issues, chief
'ly bonds, have been added A portion of
these issues was for refunding purposes,
a part for taking up notes issued two
years ago and a part to provide. for
present needs. just how much to appor-
tion to each class of needs it is impos
sible to determine, but very consid
erable portion went to take up notes.
and to meet current requirements, and
therefore represented new fixed capital.
Even this large output of new securi-
public demand, which is particularly
fortunate for both the railroads and the
bankers who have bonds to offer. There
is still a good inquiry for bonds in this
market, buyers, however, not always
exercising the discrimination that they,
should, and in all probability there will
be further issues, if conditions favor, to
provide for maturing obligations I" and
needs of the railroads. Fortunately, gen
eral business continues satisfactory,
while the railroads are again enjoying
a prosperous season after the losses
of the first half of 1904. During Decem-
Der and January the roads reporting
earnings made showing 8 per cent bet
ter than last year, and in spite of un-
favorable climatic conditions the in
creases continue In 1904 the gross
earnings on 10000 miles of road $50.
per cent of our entire mileage) amount
.ed to $l,773,OOO O00O, an increase of $ll,-
100000 over the previous year. In 1903
these roads showed an increase of over
$lSO,OOO,OOO
Probably the most serious thing that
could now happen to the railroad inter
ests would be the passage of a rate
making bill. Railroad magnates .consid
er such an enactment would be an en-
roachment of the government upon in
dividual rights, that it has no business
to interfere between the railroads and
the people further than to enforce
evenhanded Justice on all sides. Rate
making would be an unjust exercise OF
government power. !. No commission
that can be organized would be compeT
tent to deal with such vast and COM
plicated piece of work. 1t might as log