Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1907-05-14
.sMss1 OF THE ASSOCIATED PRESS
BUSINESS CONDITIONS.

Operations in the stock market dur
ing the past week have been discour-
aged by several conditions such as un-
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.
says Henry Clews. As usual, there
has been more or less exaggeration
in these reports. Especially isa this
true concerning the crop outlook
which is not as bad as represented.
The facts are that spring Isl fully two
weeks late, and that cold and wet
weather over large sections .of the
country have materially delayed plant
ing and the termination of seed al
ready planted. OF course, "a, late
season is somewhat of handicap;
yet a few days of continued warm
weather will probably, quickly make
up for lost time and much of the dam
age has no doubt been exaggerated
for speculative effect. ,.s. 81 .is
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; Ri.
As for the business situation, mod
crate recession in trade appears to be
generally anticipated and will in some
quarters be actually welcomed. Va
1ues of commodities and costs of pro-
duction are still at such a high level
as to check new enterprise and in
Eolve all future contracts with excep-
fiona1 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 I'M
tried or new enterprises. Pessimism
I is vastly more pronounced in New
York than in any other section Of the
country. All advices from the inter.
Tor are that business continues on an
1lndiminished 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.
S Our railroads are still heavily taxed
with freight, traffic managers all over
the interior being hopeful in theil
views regarding business. Their CHIEF
problem is that Of properly handling
the traffic which presses upon them
In the month Of March Il roads re
ported gross earnings of per CEN
ahead Of the enormous traffic Of las
year. The companies are therefore
still under the urgent necessity .oi
4 providing better facilities. In provid
ing the latter they are seriously
handicapped by two considerations
First, the great increase in expenses;
and second, the difficulty of securing
capital except at high rates Of inter
est. In the matter Of expenses on the
above reports it is noted that they in
creased Is per cent over last year
causing decrease Of over Q per cen.
In profits. This tendency towards
diminished profits is today character
istic OF our business enterprises. i
Z is not confined to railroads alone
but is rapidly entering into industrial
and mercantile operations, owing, ais
stated, ito the high cost Of commodi
ties and labor. The railroads arc
really facing serious problem THAI
of providing increased facilities when
profits are diminishing and rates d
interest advancing. Under ordinary
circumstances they would recouI
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
improvements, as far as practicable,
and confne them to those which are
absolutely necessary.
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