The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-05-20
U.S.. STEEL IS NOW
BEING WATCHED
The indications Point to Con-
tinued Activity
HILLS AMBITIOUS PLAN
Although Now an old Man He Pro-
poses to Parallel the Canadian
Pacific With Another Line
of Railroad.
HILLS AMBITIOUS PLAN
BY w. G. NICHOLAS.

New York, May 19.-rhe market action
in the stock issues of United States steel
is being watched more closely than that
of any other stock on the list for the
reason that it is almost universally re-
garded as the best known barometer of
business conditions. The steel trade feels
the ebb and flow of business sentiment
and of business expectations as accurately
and as unfailingly as the delicate meenan-
ism of any instrument devised for telling
the weather. Just now the wise men
of the financial world are giving their
closest attention to the other books of
the big steel corporation and acquaint-
ing themselves as best they may with
the feeling and tone of the trade. In
many conservative quarters the opinion
was held that this year would witness
the elimination of the long period Of
high pressure activity in iron and steel.
They could not see how there could be
reasonably hope of further prolongation
of the amazing demand for the products
of the iron mills and the allied industries,
and there was a manifest lack of optim-
ism in the expressions voiced by the con-
sentative element. OF late, however,
change for the better is noted in SEN
timent as reflected in quarters where
heretofore doubt has existed. Word sent
back from the outposts of observation is
almost universally encouraging Not the
least hopeful sign is the willingness of
railroads to project themselves into the
next calendar year with large orders for
rails. Bookings for 1907 already exceed
100000 tons and 1t Is understood that
plans already agreed upon by railroads
will call for 100000 tons more. 1t will
thus be seen that fully one-third of the
entire capacity of the United States is
already bespoke. 1t is not so clear, how
ever, that the demands upon the Equip
ment companies will be up to this year.
Orders for 1906 include 100000 new cars,
which will bring the total number of
cars in use up to about 10000 which
in the opinion of experts will reach the
full tonnage requirements for some time
ahead, leaving the roads only needing to
provide the normal depreciation and loss
of possibly 10 per cent. The agricultural
outlook is all that can be desired The
planting season is approaching close and
there is singular absence of complaint in
any quarter. There is in fact very little
to base gloomy views on and the tlmid
and doubling ones have little basis for
said prophecy beyond the fact that we
have enjoyed such long period of pros
perity that change must occur for the
worst. That sort of reasoning is far
from convincing, although 1t unquestion-
ably has weight 1t is not in the nature
of things to go along forever in un-
broken tide of good times or bad times.
Wall street had one bad spell few years
ago, but the country at large has suffered
no interruption in its march of prosperity
since 1896, ten years ago. According to
the cycle theories we have the visible fact
of boundless activity in every field of
industry with no real evidence of a let
up anywhere along the line.