Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1907-05-14
HsMssR OF 7He ASSOCIATED PRESS
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BUSINESS CONDITIONS.

BUSINESS CONDITIONS.
Operations in the stock market dur
ing the past week have been discour-
aged by several conditions such as I'M
{ favorable crop reports, rumors of new
capital issues, expectations Of trade
reaction, strikes, and uncertainty re
garding the financial policies of some
Of the largest railroad corporations,
Y says Henry Clews. AS usual, there
has been more or less exaggeration
in these reports. Especially is this
true concerning the crop outlook
which is not as bad as represented.
The facts are that spring is fully two
weeks late, and that cold and wet
weather over large sections Of the
country have materially delayed plant
4 ing and the termination of seed al
ready planted OF course, late
season is somewhat of handicap;
vet a few days of continued warm
u weather will probably quickly make
up for lost time and much of the dam
/ age has no doubt been exaggerated
for speculative effect #lr 5s4-@ s4so
The wheat crop is backward; but it
is much too early to anticipate any
serious injury, and the more reliable
reports do not substantiate serious
damage rumors. AS for corn, the
most important of all the crops that
is not yet planted; SO the would-be
crop killers have been deprived Of a
valuable opportunity in that quarter.
In short, there is no reason thus far.
for any serious alarm in regard to the
crops. ss
AS for the business situation, mod
crate recession in trade appears to be
3 generally anticipated and will IN some
quarters be actually welcomed. Va
lues OF commodities and costs of pro-
duction are still at such high level
as to check new enterprise and in
\ volve all future contracts with excep-
tional risk. This sense of danger in
the situation is of itself exercising a
considerable restraint upon business
transactions, and is further accentua-
( ted by the conservative action of
bankers, who steadily refuse to lend
their aid as freely as formerly to un-
tried or new enterprises. Pessimism
is vastly more pronounced in New
York than in any other section of the
country All advices from the inter
4 ier are that business continues on an
undiminished scale, and, that there
! are no signs of abatement in the act
!. i've development of our natural re-
\ sources in any part of the country
This is confirmed by the continued
heavy demand for nearly all iron pro-
ducts.
M Our railroads are still heavily taxed
with freight, traffic managers all over
the interior being hopeful in their
4 views regarding business. Their chief
4 problem is that Of properly handling
the traffic which presses upon them
In the month of March II roads re-
ported gross earnings Of per cent
a ahead Of the enormous traffic of last
!. year. The companies are therefore
still under the urgent necessity Of
providing better facilities. In provid-
ing the latter they are seriously
Handicapped by two considerations
First, the great increase in expenses; Z
and second, the difficulty Of securing
3 capital except at high rates Of inter
est. In the matter of expenses on the
above reports it is noted that they in
u creased IS per cent over last year,
causing a decrease of over 2 per cen.
in profits. This tendency towards
diminished profits is today character
istic OF our business enterprises It
\ is not confined to railroads alone,
but is rapidly entering into industrial
and mercantile operations, owing, as
3 stated, 10 the high cost OF commodi-
ties and labor. The railroads are
really facing a serious problem that
Of providing increased facilities when
profits are diminishing and rates Of
interest advancing. Under ordinary
circumstances they would recoup
themselves by an advance In freight
rates, but the present state Of public,
opinion renders such policy wholly
inadvisable. IN consequence, the
roads must postpone contemplated
improyements, ais far ais practicable,
ana confne them to those which are.
absolutely necessary