New-York tribune., 1907-09-18
ALONE DEPRESSED"
Nothing Wrong zcith Countrys
Business. SdyS Il. j. Gross.

There is absolutely nothing wrong with busl-
ness conditions this country outside OF New
York and the unsettled conditions here are 60
ing to work out ultimately in way that VIII
put the business world in the soundest condi-
ton it has ever been in" These remarks sum
up briefly the views OF Robert ]. Gross. vice.
president and director Of the American Locomo-
tive Company. as expressed to a Tribune re-
porter yesterday. Mr.. Gross. the head OF the
sales DEPARTMENT of one of the largest COM
mercial enterprises in the country. which deals
with the railroads-sometmes called the barom-
eter of prosperity-is in an excellent position
to know the real condition OF the country.
7 have always been long Uncle Sam.
said Mr.. Gross. "and shall continue TO be So
The figures Of our business show that whatever
recession there has been has been compara-
lively small so far. Whatever the reason for II
may have been. capital in this city has been
tImid. The money is here. but the people have
been afraid to put 1t out. But the present con-
dnions will work out in the end in way
that Will benefit the entire commercial fabric
The only trouble to-day is in the financial
situation. There is no need to go into that' out
the fact Is that there has been tightness in
the money market. There are many large rail-
road systems that need power. and we know OF
some of the largest systems that would alreduy
have purchased this or would be purchasing IL
If ii were not Tor tue question: VI iliioii0O0-
gross earnings of most of the railroads have
been the largest in their history. but the net
earnings have not kept pace with the gross
earnings It is true that railroads have re-
duced the cost OF transportation in certain re-
spects by the requirement OF more erTlClent lO-
comotives and larger cars. But the cost OF oP-
GRAFTON has gone up along other lines. which in
some cases has more than offset the other re-
duction The increase in fixed charges has oeen
s,,nnIies has gone up and think the cry OF the
railroads that while all these things nave gone
up rates have either remained stationary OF
have been reduced is justihable
'Ff;t the railroads need more power and VIII
be compelled to buy II or reject business DE-
Iieve it vas James J. Hill who said recently
that the railroads of the country would IN the
next FIVE years have TO expend S0,orVopoo
on additional power. rolling stock. rights OF
way. trackage. terminals. etc There Is no
question Of the truth of that statement. and
think the amount could De increased WITHOUT
going beyond the truth.
..Eor some time there has been hesitancy on
the mart of railroad managers to &C ahead with
betterments but a turning point seems to nave
been reached In this connection can say that
We have Just received order from one or the
great railroad systems for two hundred locono-
tives Another order has been taken from
railroad that should I name it. would be recos-
nized as one of the greatest in the country This
is for 125 locomotives. Railroad men kno"
what such orders as these mean We have here
concrete evidence that one Of the ablest rail-
road men Of his time has confidence In the
situation and feels justified in going ahead with
betternnents In no surer way could he snow
the faith he has in the future
u was announced yesterday that the Hsrri-
man lines had ordered 125 locomotives from the
American Locomotive Company w V ;
Thorne the purchasing agent of the Union Pa
cihc Company, said that the first OF the new
locomotives would be delivered in December and
the balance as rapidly as possible thereafter the
average price he said. was $1,000 each. or
50 1c5 600 for the lot. Mr.. Thorne added that
the large order for locomotives was In part due
~ the fact that the Hartman lines would as
sup,e the refrigerator business their own
routes after October /. OF the six thousand re-
friserator cars ordered about q year ago. he said
all but seven hundred had already been re-
ceived.
New York is prone to be too much wrapped
up in ITSELF continued Mr., Gross. When you
get within twenty-five miles of IL you feel its
chill But soon as you get outside this zone
II is different. There you do not ind pessi-
naistic spirit Business Is going on with rush
Several large businesses OF which have inti-
mate knowledge never had such volume or
orders as they have to-day
II am a confirmed optimist- Just consider
for a moment the tremendous increase in our
wealth. the indomitabe energy of our people.
the development of the mining industry. the
reclamation OF arid lands by irrigation. the i'm
proved methods of agriculture-due to large
extent to the Department Of Agriculture at
Washington. Think of the newness OF this
country compared to others; think of the mag
nificent resources just coming under develop
ment and consider that we the most ex-
trava CANT race OF people on the earth. spend
ing our money fast get 1t and keeping
IL in circulation. All this leads TO believe
that in the not distant future we are destined
to see prosperity on scale for which there is no
precedent. 1 believs that the condition OF bus
ness through which have just passed will
be looked back TO now look back TO the
old panic times