Evening star., 1909-06-11
FUTURE SEEMS BRIGHT
Financial Conditions in New
York Appear Restored.
EVERYBODY IS Confident
Increase Shown in Dividends on
Railway Securities.
INDUSTRIAL CONDITIONS BOOM
Establishments Running Behind
With Their orders-Next Year
Perhaps Record Breaker.
INDUSTRIAL CONDITIONS Bool
BY WILLIAM r. CURTIS.
Special Correspondence of The Star and the
Chicago Record Herald.

BY WILLIAM f. CURTIS.
Special Correspondence of The Star and the
Chicago Record Herald.
| NEW YORK, June 10. 1909.
| Financial conditions here seem to have
been fully restored, and are as favor
able as they were before the panic Of
/ 1907. Everybody is an optimist. Every
| body is confident of long continued pros
perity. There is plenty Of money for
all legitimate enterprises at low rates,
and a healthy. active demand for new
securities. as was shown by the man
ner in which the ten million dollars Of
the stock Of the new United Dry Goods
| Companies was snatched up, and the re-
cent issue of bonds OF the Corn Prod
ucts Company. Twenty-four hours after
the subscription books for the dry goods
stock were closed it was selling at Ill.
i The bank clearings for May in the west
and on the Pacific coast surpassed all
records. and here they exceeded 1906.
| About seventy-seven million dollars will
be disbursed in dividends and interest
upon railway. industrial. municipal and
other securities during the present month.
The June dividends this year will
amount to seven million dollars more
than during the corresponding month In
1907, which was the banner year, of
i which increase two million dollars rep
resents the railways and five millions
i the industrials. AT the same time, all
of the companies represented have been
reducing expenses which was perfect
ly natural. owing to the circumstances.
That is healthy condition, and the net
earnings from which the dividends are
derived have advanced in almost every
case.
For example. the dividends on railway
; and industrial stocks amount to $37.-
$4,000. as against $34,o25.0oo for the
corresponding period in 1907. while the
interest disbursed this month upon
bonds and other securities will be s40,
35S. 900, as against S36.19900O for the
CORES ponding period in 1907, which was
the banner six months in all history.
Industrial Situation Improved.
Industrial enterprises are reported to
have been restored in May to about So
per cent of the volume of the output and
the number of men employed in the cor
responding month of 1907, and the value
of orders received is estimated to have
been nearly 30 per cent greater. For ex-
ample, the orders received by the various
branches Of the United States Steel Cor
Il poration, and also by the various inde-
pendent steel manufacturers, for all
kinds Of products were unprecedented.
notwithstanding that prices were advanc-
ed 81 a ton. During the month Of May
the steel corporation sold 100000 tons of
finished products. At the beginning OF
the month the American Steel and Wire
| Company had the largest stock on its
hands in history. and was running on half
/ time. At the end Of the month 1t had
| sold every ton of stock and had booked
orders for 10000 additional tons. These
orders were so pressing that the mills
| were run at full blast on Decoration day
| and night shifts have since been put on.
| The Steel Corporation received orders last
! month for 100000 tons of structural steel.
of which nearly one-half will be used in
the extension of old and the construction
Of new textile mills in New England.
/ The railway companies are buying ene:-
nous stocks of rails, bridge material, To-
comotives and cars. Their orders for May
were larger than for any previous month
in history, and they are evidently making
up for the idleness of the last eighteen
| months. The railways are always the
| largest consumers of iron and steel when
business is good, and it is evident that
the managers anticipate unprecedented
/ activity.
Orders for Cars and Engines.
The Pullman company reports orders
for 5000 all-steel coaches from the Penn
sylvania railway and for 1.5oO forty-ton
refrigerator cars from the Hartman lines
The Chesapeake and Ohio has ordered
1000 new steel cars and the New York
Central company has placed contracts
within the last month with the American
| Locomotive Company for seventy-two To-
| comotives, which will be made at the
Schenectady and Dunkirk plants. and be
! distributed among the Lake Shore, Michl-
| gan Central and Canada Southern rail-
| ways. At both places all of the men who
| were laid off after the panic have been
| restored to their old jobs. and both shops
are running on full time with full force.
| l learned in Philadelphia that the Bald
win locomotive works had received or
ders In May for 1O5 new engines. and
| they are running on full time with full
force, and these orders alone will keep
them busy for several months. The steel
/ corporation received orders for 3OOO0O
tons Of Steel rail last month. and on a
single day orders were received for 10000
tons. the largest order on record.
The Santa Fe Railway Company is get
ting ready to spend $2o,0O0.OOO In better
ments. and several other roads have SIM
liar plans. The directors Of the New York
i Central have just authorized the expen-
diture of s7.700.O00 to resume improve
ments which were suspended at the time
of the panic. and the money will be used
to extend the switching yards at Buffalo
and Gardnerville, in reducing grades and
in double tracking West Shore the entire
distance between New York and Buffalo.
The directors OF the Lake Shore have
authorized the expenditure of $500, 900
on the terminals at Chicago in laying
third and fourth track west of Buffalo
and in buying new freight cars.
The Boston and Maine railroad, which
reduced the pay Of It's employees in Feb
rnary, 1SOS horizontal 10 per cent, his
restored the old figures, according to
agreement. and has thus kept faith with
its men. This will have wholesome ef-
feet upon railway employees throughout
the entire country.
i The General Electric Company received
orders in May at about the normal rate
for the five years preceding the panic.
and If this average is maintained the total
for the year will be about sixty millions
as against fifty-three millions for the
best previous year.
The Westinghouse company has already
exceeded its record for the first five
months In 1907. and reports that, if the
business continues through June. the first
six months of 1909 will be record break
ers
The Lackawanna Steel Company has
done so per cent as much business during
the five months just closed as in the cor
Exoc dixa1< tai fE..