The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1908-08-21
BUSINESS IMPROVEMENT sLow.

The trade conditions throughout
the country appear to be mending
very slowly. 1t is stated by good
authority that the order for steel
products have not been coming in as
well this month as they did during
July, and the percentage of the
United States Steel companies cap
acity in operation is not much larger
than it was month ago. The i'm
provement in the steel industry rest
ed mainly ON a better demand for
structural steel owing to the renewal
of building operations, particularly in
the west. The railways which con-
sumed fully one half the steel pro-
duets of the country have been buy
ing very sparingly: no better evil
dence of this could be had than the
amount of attention given what
orders do come in. The average
order is for but a fraction of what
would be received in ordinary times,
as the companies with very few ex-
eeptions. are not only refraining
from any betterment or extension
work, but are curtaling maintenance
so far as possible The same policy
is pursued in the matter of equip
ment, and in fact the buying of
equipment is on even smaller scale
than that of rails. The departments
must pick up before the steel in
dustry can gain much from the cur
rent level.
1t must he realized by this time
that the earnings of the railways
have NOT improved to any material
extent, and that the companies TO
make better comparison of the net
than the gross receipts, have con-
tracted in some cases, and in others
represented the postponement of
necessary expenditures. These eX-
penditures will not only have to be
made sometime, but the longer they
are delayed the more expensive will
be the work. One of the best tests of
whether railway has been spend
ing sufficient for proper maintenance
is the question of the number and
capacity of the cars and locomotives
on hand. If railway has less cars
at the end of year than at the
beginning and the loss in number is
not made up by larger capacity for
the cars bought in renewals. then
the equipment has not been main
tanned and the income account for
the year has been under charged
unless proper amount has been
charged into expenses and set aside.
1t is not likely that many railways
will pass this test for the past year.
although they will be helped by the
receipts of cars on old orders. and
certainly if current conditions con-
tinue, they cannot this year. This
means in case where dividends are
being paid that the property itself is
being used mp 10 pay them. II is In.
eyitable that the Steel Corporation
will some day have all the business
il can handle and the car building
companies also, but we are not maxi
ing very rapid progress in this d.
rection now, and will not. until there
is radical change in the position of
the railways. How to bring this
about is the question, for while bust
ness depends on the railways, the
railways depend on business. Con-
fdence would supply the needed in
itiative and the railways have
proposed an advance in freight rates
as the best means of promoting It,
Politics interfered, however, as they
did In the matter of a reduction in
wages and prevented it. The only
alternative is to go son as now, hop
ing for turn and postponing pur-