The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-11-23

| appears to be dividing itself into two
sections-the railroad and the indus
| trial section. Railroad shares, though
having undergone moderate recessions
are still upon a very high level. 1t
is true the railroads are making large
gross earnings because traffic is now
as heavy as before the panic, and rates
, have been advanced to more profitable
| figures. Railroad managers are, how
blesome problems. Economies which
followed the panic are now enforcing
| corresponding heavy OUTLAWS for better
ments and engagements, which means
not only increased expenditures out of
| earnings, but larger applications for
| new capital They are obliged to pay
more for supplies, and the cost of op-
Grafton are steadily increasing. Labor
! agitations are already confronting
| them. So too are the possibilities of
an antagonistic congress during the
coming winter. While, therefore, the
! earning capacity of the railroads is
promising, their outlook as investments
| is not especially attractive. Dividend
| increases are very remote owing to
] circumstances just alluded to, and the
poor returns on present market values
make railroad shares less attracstive
to the ordinary investor than formerly.
| Until a closer adjustment has been
and prices of railroad shares, and I'M
f. til the chances of better dividends
| improve, purchases of the average
railroad shares should be made with
/ caution. The bond market continues
very unsatisfactory, and though no i'm
| portant declines have been recorded,
| the demand for this class of invest
| ments has much declined and values
! show softening tendency.
| In the industrial section of the mar
ket the outlook is somewhat brighter
| for the better class of securities. All
! those in any way connected with the
steel trade, are wonderfully active. Or
ders are on hand which will keep them
pusy for months, and profits are gen.
orally satisfactory. The tariff agita
ton is over for the time being, and if
speculation is to succeed in any direc-
ton it is likely to find the industrials
the most profitable field.
All things considered the outlook
warrants hopefulness and caution.
Congress will very shortly open, and
much depends upon it's proba BILE course
towards corporations. The anti-capi
tai spirit is only slumbering and will
be easily aroused by untoWard cir
be overburdened with friendship for
corporations, and although his general
attitude is understood his annual mes
sage will be looked forward to with
10 little interest. Another element
which must not be overlooked is the
agitation in Eng and over the budget.
1t is now we'll known that the House
of Lords will reject the proposals of
the House of Commons, and that in
consequence an election will have to be
held next January, an election that
will probably excite strong antagOnism
Tbo
budget aims to increase taxation upon
land and wealth, so that it's outcome
cannot but be watched here with in
tense interest The British govern
ment may thus be obliged to enter the
money market as a borrower upon a
! large scale, and the effect of this upon
public opinion and the foreign security
| markets will be anything but favorable.
Should London be obliged to sell
stocks freely in order to absorb such
q loan, American stocks would prob
ably be among the first to be sacri
| feed owing to their high prices and
| foreign dislike of our recent specula-
! ton
The copper situation here is improv-
| ing inasmuch as consumption grows
and producers are evidently trying to
| put an end to the present senseless
policy of overproduction. Speculation,
| however, in copper and cotton and
real estate continues on a scale that
creates suspicion. AS yet there is no
positive weakness in these quarters,
yet the general financial situation,
| while warranting a cheerful feeling, is
| nation and caution.