Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-01-12

orally supposed. lasting four or 1--WE
yenrs. since which time we have had
a remarkable period OF prosperity.
But people arguing from the regular
ity of the occurrence of dcpressions in
the past feel that now. as 10 years have
rolled away, we have another one due
and 1t may come In the very near fu-
ture.
WILL HISTORY REPEAT ITSELF?
Tho condition in 1923 and up to
1885 is being repeated in large degree
ut the present time. All periods OF
depression are preceded, whatever
other causes may exist, by over eX-
tended credits or undue speculative
conditions. We are experiencing
these things at the present time, but
above them Is the menace which
comes from intense railroad activity.
In 1880 the Increase OF railroad mile
age was gill miles. in 1881 9,S48. In
1882. 11,569, then a drop in 1883 to
B,746, very sharp falling off in 1884
to 3.g23 and in 1885 to 2.975. We are
now approaching these conditions. not
so much In tho building of new lines
of road as in the extension of old lines,
the strengthening Of curves, the mar
yelous improvements that many roads
are making. Hundreds OF millions of
dollaras, almost an incalculable sum,
are being expended in railroad work.
Should this cease. or when 1t ceases,
several hundred thousand workmen
viii be in precisely the same predica-
ment they were in in 1923 and like
results will be experienced.
Fortunately for this comparison.
however. many OF the most import
ant improvements, those involving the
largest expenditure of money and
| employment of men, viii take years
to complete. 30 the sharp falling on
| experienced in the previous period
| will not be felt for several years. The
| apprehension, therefore, from this
| particular cause must be remote. al
| though the conditions should be recog-
| nized.
| But there is another and more I'M
| portant factor which leads to the con-
| clusion that the next industrial de-
! preston which comes to the United
| States will be postponed, or IL not
| postponed will not be so severe as de-
| pressions In the past. and that Is the
| steadying influence of great combina-
| lions of capital. whether in manufac-
turing enterprises or otherwise, or to
use popular expression. the steadylng
| influence OF the trusts. Preceding In
| dustrial deprcssions in the past some
great house has gone under, carrying
| with II many smaller ones. resulting
| in a crisis followed by n depression In
industry. when the cry OF falling prices
scarcs everybody. especially the wage
Garner. whose wages must fall with
prices of commodities.
sTEADYING INFLUENCES.
This occasion for q depression Il
not so likely to occur under present
conditions of industry and great oper-
atoms as in the past whether one
approves or disapproves the modern
system OF great combinations he mus
thaW have
ing influence to which l have alluded
An instance OF this was felt in l9O2
when the Amalgamated Association OF
Iron, Steel and Wire Workers organ
lied strike against the United States
Steel Corporation, The theory Of tbs
strikers was that the corporation, theI
putting large amount OF common
stock oil the market. would not al
low strike to continue, as II nigh
influence the sale OF such stock. A
soon as the strike occurred the stoci
did drop two or three points, but 1
soon rallied, because 1t was under
written. A syndicate representing
$4,000, 900 agreed TO protect tn,
stock OF the United States steel Cor
poration, so the effect which was sup
posed 20 come from the strike did no
materiali2e. The capital invested II
various enterprises depending In som,
degree upon the soundness OF thu
|
others having collateral interests Il
It's prosperity held II up so that 1
could not fall. and Il would be 5,
now.
Suppose a great banking house Il
New York, having various Interests Il
different directions. industrial an,
otherwise, Interested In transportation
mining, all the great interests OF tn
country, should ind itself In straits
II Is not possible that capital woul,
allow that house TO fail. II could ma
AFFORD II. II would underwrite II
obligations and save the country from
financial panic, In the days o
small establishments not Interviews
I'm their interests when one went dow
there was no one 10 help hold II u
except through friendly offices. TIL
condition has changed entirely, an
we must look TO see the great com
binations each depending upon In
other In way--rhilroads dependin
upon shippers, shippers upon rail
roadn great mining concerns depend
ing upon these --associate themselye
together for the purpose OF preyentin