The Cairo bulletin., 1910-12-12


new financing will be largely on these
lines, and that little new capital will
be raised by means of stock fiota
ton
Railroads Need Funds.
Our railroads are greatly in need
Of funds to carry out projected inn
provements, made imperative BY
growing traffic requirements. Sue
cess IN the placing OF these issues
will undoubtedly stimulate business
activity Orders for rails and equtp,
nent which have been held back for
months will be placed, perhaps grad,
ually, but with sufficient freedom to
.mpast fresh life to the iron trade
which is now running only a little
over half its full capacity. Other
lines of constructive work will also
isenefit; so that while many business
conditions must be classed as unsatis
factory the outlook is for betterment
chiefly because of easier money. il
is thus that liquidation and lower
prices pave the way for fresh for.
ward movement.
Court Decisions.
The most serious uncertainties OF
immediate Importance are the action
If the Interstate Commerce Commits.
Sion en- railroad rates, and the pend
ing supreme court decisions upon o..
and Tobacco cases. Recent railroad
returns have been discouraging, ow
ing TO heavy losses in net earnings
resulting entirely from the increa Sc
IN expenses. AT the same time gross
returns are showingi smaller gains
and the present tendencies, if con
tinue.i, would unquestionably mean
serious consequences fcr the rail
roads, The latter, however, have two
resources. FIRST to cut down cx
penses, which they vii undoubtediS
be compelled to do; and second, to
secure better rates of transportation
The latter result will not be so easy
If accomplishment; but If the inter
state commission is composed of 8
body OF rational and fair-minded men
rs we believe it TO be, there is little
doubt but that some concessions will
be made to the railroads even though
they be much less than desired. Con
efnins the supreme court decisions
Il is also to be assumed that tho
judicial spirit will prevail, and that
politics and prejudice viii be rigidly
eliminated. 1t nuts be taken for grant
ed that no property will be destroyed
and that property rights will be pre-
servedy. If the strictest possible
construction OF the Sherman law be
enforced many Of our great combna
tions will be forced to disorganize
causing more or less temporary con
fusion, but even then the plants will
remain, and the demand for their pro
Ducts will not be abated one whit by
any decision within the power Of the
supreme court. There is good reasoi
10 believe that some of our largest
corporations have made Plans in adj
1ance which viii enable them to com
ply with the law with little disturb
ance. It should be remembered tha'
the famous Northern securities de
Cision concerning which dire predtc
lions were made, brought none of the
disasters that were fered Very likely
the Oil and Tobacco decisions will he
accepted with equal fortitude wher
they come
Outlook Promising
AS to the future of the market, The
outlook is promising for rather more
activity and fair advance, although
in view Of lessened satisfactory condi
tons Of business no very pronounced
Upward movement is yet in .sght
9eadiusfment is not yet complete
and initiation has not been entirel,
eliminated, but there lis nothing seri
lnsly unsound in the situation. and
commodities can only be brought to
more reasonable basis there Is notn
ne to prevent a restoration of bust
ness activity.
HENRY CLEWS.