The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-03-14

OovtouAly there cannot Be the ZANE
need for such expenditures thsFe once
waS. Very likely. however. the change
has been induced by the action and regu-
lAtions OF the interstate Commerce Com
mission. which prohibit charging NO such
OUTLAWS In the former manner and require
that OUTLAWS for improvements and al
ditions In the nature Of capital expendi
tuEe shall be stated separately In the in
come account and shall also be entered
a. . separate item In the balance sheet.
None too frequently does the Interstate
Commercs Commission attract the In
weston. who In the long run IL the person
eseMblialling the average level Of prices.
Whistler or not the relative cheapness
% stocks a. compared with former periods
Of normal prosperity or relatively higher
dividends 10 to bs the fashion there In
M doubt that the numerous staieuDents
81 railroad and Industrial companies
issued Last week encouraged the idea that
equities In the stocks % practically all the
well established companies are increasing.
or az least have recently enhanced ma
terially Almost without exception state
msnts for January were unexpectedly
favorable not only ny comparison with
the poor railroad statements for Decem-
her but by comparison with the high
January records % all the reporting sys-
tens. For February returns Of only gross
eaFuings Of the railroads are available.
but q computation embracing tho roads
thus far reporting shows gain " $1,000
600. or 10 per cent. over last year Quite
an significant are the reports from the
steel trade and from the railroad equip
AL akWaaa.
ton Of pig iron in February exceeded
that in January. and the total made new
high record for the month. Equally con-
spicuous were the railroad purchases Of
equipment. which for the week just closed
e1oeeded those of any previous week Of
the year On the last day ~ the week
there were announced purchases entailing
an expenditure 81 more than SiI 90. 0co.
The railroads are earning money and are
able TO raise money for new constructiou
and improvements. and they areeSpendinG
Il in . manner that must betoken conf
dence in the future on the part of railroad
managers and fiscal agents.
Sales ~ securities abroad make ex-
chanRe and contribute to the credit side
81 the unknown balance ~ trade. Dut
in the nature Of things theas sales can
not b. long enduring az the present rate
and the credit established ny them be-
comes a debit for the future in interest
charges redemption 81 princinal and sales
81 foreign held securities on the New
York market sterling eNchangs rates
declined materially last week in accord
ancs with them. hut On the last day ot
the week the rates recovered a part Of
the los. There were then available the
Government figures of February ak
ports q provisions breadstuhs, cotton
and other minor hut important com
moiities. The total 81 thes- was hut
see OOO 90 as comIlared with Ss3OnO IN
and ssi, o.0OO for the corresponding
months ~ 1874 and i9iS respectively.
The entire trade balance for the month
il no; avsiIsbl-. but imports - merchan-
disc AZ the port Of New York show a great
increase and there - a. least a possibility
that the complete figures will show an
import balance for the first February
sine. 1896 An unfAvorable factor also
10 the comparatively low reserve reported
nv the Rank % England and the suhse-
uuent heavy losses % gold by England to
India and the Continent. which are de-
velopuents that NAV speedily bring a
cessation oH the British demand for bonds
Al.o ram. reserves here are none too
plentiful u the present pace 81 issuing
bond. - ~ he kept mp. and labor troubles.
though there seems no chance II serious
d fticulty A. far a. the railroads and the
bag industrial corporations are ConCeT ned.
tend greatly to c'IrtAil business activity
in some important centres. And over
all IN the minds ~ tinid speculstoTs and
- = H.
radical construction 81 the sherman act
in the American Tobacco and standard
TIL cases. Last We ek a. Ia previous
weeks Of the wear this formidable possi-
hilirv undoubtedly acted az a deterrent
10 purchases 81 stocks. Rit last week
there we're no more conspicuous price
movements than those IN the securities
Of the American Tobacco company. none
in - hich the advances were urnFe decided
and none in which the transactions seemed
TO represent more confident buying by
inside interests Undoubtedly the heavy
purchases OF these securities reflected an
opinion that - now widely held To the
general effect that the decision Of the
court will he compatible with the general
methods 81 business AZ long carried on.
even though both the Standard OIL and
American Tobacco companies nav l-e
ruled against IN the ground ~ rough
tactics in the elimination of competitors.
The opinion - not at all generally held
that he highest court will declare illegal
every combination of Interstate business
concerns in the same line II trade. And
the men Who do adhere 20 this opinion
consider that u would place under the
law the Washington market grover VII"
buys up the stall ~ his nelghbor the
farmer who buv- or takes a mort gage Oh
an al IoininG farm or the ~uburhanite
who breeds terriers for sale IN the city.
and buys IN the kennel IT a friend In an
extremely radical construction -: she Law
there - thus the more or l~ss cOnsoling
reflect ION that all must GO down tDgether.