The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1910-09-12

ed by the railroads have imposed very
serious additional burdens upon earn
ing capacity. Although traffic has
been we'll sustained, current net earn
ings of nearly all Of the main lines
are showing rather disquieting de-
creases. 1t is evident that, unless
traffic increases or rates are increas-
ed, dividends must decrease with a
consequent unsettlement in security
values. Moreover, if the profits of the
roads are to be seriously impaired,
many improvements must be post
poned, and the roads will be obliged
to curtail expenditures in many direc-
tons; all of which will effect labor
adversely and throw many hands out
of employment. The outlook is not
an assuring one; yet there. is good
reason to believe that justice and reas-
on will ultimately prevail as between
the government and the railroads.
Clearly, the latter are entitled to
some consideration in the matter of
rates.
| It would seem also as II unnecessary
anxiety existed regarding the coming
decisions of the supreme court. That
body has always consistently stood for
the preservation of property rights.
Whatever its decision may be as to
the methods of the great combinations
before the bar, and it is not to be sup
posed that the supreme court will
seek to destroy them. Its policy will
be more likely to conserve; and, if
changes in methods of organization are
to be enforced, such corporations will
at least have the advantage in future
of being immune from public criticism.
They will be in harmony not only with
the government policy, but will have
complied with the highest law of the
land. This ordeal, once passed, will
probably leave these properties COM
paratively safe from hostile political
attacks, and prove positive benefit
rather than a disadvantage.
The general business situation is
improving Trade is quiet ana being
conducted on much more conservative
lines than year ago-a policy which
is likely to prove helpful and result
in larger and sounder activity later
on. There is still some timidty in
business circles over uncertainties
which have already been discounted
in the stock market, but in due season
these drawbacks should gradually dis
appear AS soon as liquidation in
commerce and industry has been as
thorough as in finance there would
seem to be little reason for delay in
business revival. The three great
commercial nations of the world Eng
land, Germany and France-are still
enjoying a high degree of prosperity.
In all three countries, and especially
England, both domestic and foreign
trade continues upon a large scale
without interruption. There is no
lasting reason why the United States
where depression prevails; but such
is the fact. This country has been
suffering from past excuses. For
eight months at least, if not longer,
we have been paying the penalty; yet
as long as activity continues abroad
it is reasonable to hope that we, too,
should regain our share.
Now that vacations are over the
stock market should resume more nor
NAL activity. In the absence of fresh
unfavorable developments the market
would probably respond more rearily
to an upward movement than down
ward. Good investments are selling
at very low prices, having discounted
unfavorable factors; and there is no
doubt an abundance of capital held
awaiting investment when confidence
begins to revive. There has been a
marked falling off in the supply of new
securities, and this also must have
favorable effect. Although the out
look is not by any means entirely
clear, still there is a tendency to turn
away from pessimistic leaders and
follow those of a more hopeful TEN.
per.