New-York tribune., 1907-10-20
NO GLOOM In TIE WEST.
WooLsey Med. johnson Contrasts
Business Feeling For Roosevelt

v-oolsev mcAlnin Johnson a netaTurgical engi-
neer, who has just returned from a tour OF ule
West, spoke optimistically Of business conoluohS
there yesterday He said that there are good crops
at high prices. meaning much ready cash 1or the
farmer and that another sign Of prosperity was
the large amount Of money being spent In per
rnanent improvements. He cOntrasted this condl-
ton with the pessimism in the East. and particu-
larv in the financial district. He added that Presi-
dent Roosevelt is immensely popular in the West
and that the sentiment his nomination for a
third term is increasing there. in his opinion,
The West is booming he said "and the further
away you get from Broadway the more optimistic
IS the feeling Having witnessed the conditions there
/ was somewhat bewildered when I struck the
downtown district here at the pessimism that pre-
vailed. I believe that the outlook Of the West is
optimistic and that of the East too pessiInsuc
! believe that labor will grow more reasonable
when the Jobs grow less for the laoorfng men. and
this happening
Metals will rise to price commensurate with the
Of production, for there is a demand for
metals IN this age of metal After the crops are
financed and things adjusted. probably by March
business men having discounted the Presidential
election then there will be bacon frying for
my Wall Street friends. especially in the bond
business"
Speaking OF of the permanent improve
ments he under way. including fine steel
buildings. water power installations. etc. Mr.
Johnson referred 10 the cuts and hlls that some
OF the railroads making along their lines, and
said he had been reliably informed that great
railroad recently moved four times as much dirt
in month moved the Panama Canal
in the month. He also called attention to
the Gary plant of the United States Steel Cor
poraton example OF what he termed de
layed dividend paying investments" He continued
in part follows:
There are, of course. several other favorable
factors. such the crops. which. while equal in
monetary value to last year are less in tonnage.
and consequently the railroads Will have time TO
regain their stride Strange relate, the efficiency
OF labor has been decreased by the increase in
wages This Is being felt, especially in the mining
business. The cost of mining a of in the
same mine under similar conditions is in no case
that know OF less than 10 per cent more than it
was years ago. Often the cost is nearly so
per cent more. Ope large company's cost for
nerIy 81 So a ton of ore. and now It is 81 This
increase in the cost of mining has increased the
cost OF producing the metal. Consequently, all
metals selling here at the cost of production
for less favorably located and poorer mines.
Having base my estimates Of values on
the metal market, I studied the consumption
and cost very carefully. In my opinion. copper will
not sell long for less than II cents. doubt much
# any competent would hesitate TO base his
estimates at than Is for the eighteen
months AT present prices lead is selling very
near the cost Of production. Unless all
going back to conditions that existed hundred
years ago when wood was used everywhere, the
metals cannot long sell at present prices
The steel business IS exception Here the
policy of the dominating interest has been benef-
cial and sane. The prices were held back in times
Of excessive demand. Consequently the swing of
the pendulum in the other direction IS less Had
this policy dominated the officials Of the large cop
per- lead and zinc companies, the position would
be better to-day and possibly they and their stock
holders would be calmer and quieter'
Referring to the Presidential situation, Mr.. John
son said:
'The popularity OF .he President in the West and
Southwest is not comprehensive 10 Fastener
II is rather increased by Eastern attacks.
RooseveIts popularity in the West is just strong
in business and banking circles as it is in the la
boring and farming classes. The sentiment for his
third term. in my opinion. is increasing. The best
men for him in spite Of his mistakes. 1t would
seem 10 me that they right. for the American
people have studied him for six seven years and