New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-09-18
ALLAWAY'S REVIEW

few bright spots are trying to gen
into the market. But, as whole. thers
continues the dulness and apparently
purposeIess drift which has long been
Oppressive. Net changes for the weea
are slight, with some New York local
stocks making an agreeable exception.
Az the week closes professional Wan
Street is persuaded that something quits
out Of the usual impends for the better-
rnent Of the fortunes OF New York trac-
ton properties. The Interborough is-
sues advance smartly. Brooklyn Rapid
Transit has the temerity to stick it's head
I'D once more. Tunnel extension plans
on broad lines are newly proposed
the McAdoo syndicate submitting pro-
gressive plans to the Public Servica
Commission-plans which when first an
nounced were hailed as good for the city,
but bad for the Interborough-a view
which however. proved fleeing. for Wall
Street rushes now enthusiastically into
the belief that instead of McAdOo inter-
ests and Interborough interests being
inimical or even competitive, they really
are, If not merged, at least cooperative.
II is urged In support Of this theory that,
financially. both Of these ambitious sys-
TENS have found financial Judgment IN
the latitude Of ]. P. Morgan & Co. And
whether this hypothesis has good
foundation or has no foundation at all.
it finds undoubted reflection in the Stock
Exchanges quotations-for the name OF
Morgan has but to be mentioned now
adays to assure the confidence which
bursts forthwith into investment enthu-
siasm.
It IS the speculative habit to prefer
especial and isolated reasons for any ac-
ttvfty. IN preference TO sensible consid-
Grafton of what may be general and
widespread At this juncture. however,
Il would seem 10 be the necessary part
Of financial wisdom to consider what IN
a broad sense are the fundamentals. Tha
crop situation Quoting those who ars
leaders on the bull side) crystallizes into
cheerfuIness. There is some shortage in
wheat, but, nevertheless, our total wheat
crop will average we'll up to the record
of the last ten years. The corn crop,
though still having some weeks OF peril
ahead Of it, bids fair 10 equal or sur
pass all previous yields The cotton
crop IS still more or less doubtful. but
at the present time can recuperate UP TO
the usual average. And, Of great i'm
widespread shortage Of European har-
vests. With our own vastly increased
domestic consumption and with a lively
demand from abroad for all the grain
which we can export, there should BE-
no question about the result to American
agricUlturists-
This true, there must be further and
large increase of farm wealth. This IN
itself IS guarantee OF continuance OF
actual national prosperity
The Industrial situation. In this same
optimistic view, presents no depressing
feature. There are countless runors OF
cuts in the prices OF steel products
without any official confirmation.
Commercial banks state that collec-
tons improve. Furthermore, leading
commercial bankers say authoritatively
that requests for renewals and new ac-
cCInmodations have during the last few
weeks diminished. There Is a healthy
tone TO business in all parts OF the coun-
try.
The money market remains easy for
both call and time borrowers. There IS
effort to arouse nervousness over the
balance of imports compared with ex-
ports. But analysis reveals the fact that
import increases are largely due to pur-
chases of luXurieS by the army Of Amer
lean travellers abroad. Talk Of general
national eXtrava gance is much exag-
gerated. The American public spends
money freely when 1t has money TO
spend, but there Is always here the saw
ing grace of common sense TO check IN
due exuberance-
In recitation like the foregoing Is COM
passed pretty much all that can be said
in support OF the bull stock market posi-
ton at present Some OF the calcula-
lions made as to crop yield. whether in
bushels or in dollars, are unfortunately
subject TO dispute But to debate this
phase Of the situation Just now Is chiefly
to bubble.
AS a trade ndication-commerciaI and
industrial. even fnanciaI-what upon the
bull side is entitled to be regarded as OK
most significance pertains to the record
OF gross earnings which the railroads
are making. Every property is showing
an increase. Most OF the increases arc
large-Some of them tremendously so.
What beyond any manner OF doubt this
attests is that there IS active business
throughout the country, that manu-
facturers and merchants alike are
favored with patronage which IS not
only as big as IL was this time last year,
but in many instances. II many d1nerenr
localities, vastly bigger.
1t is the misfortune OF the situation
that while these gross earnings mount
higher and Misunderstanding general
business more and more acttve-there
show, almost without exception, de-
creased net earnings This exhibit IS
bad for the railroads. But the figures
of gross earnings and the figures OF net
earnings are under present ctrcuEn-
stances to be considered separately. IN
creased gross earnings show that INC
country is doing business on eXpandeo
scale. Decreased net earnings show tnat
the transportation companies are racing
losses which, it must be confessed are
putting in peril the maintenance OF
established rates OF dividends m
creased operating expenses offer run ex-
planation-the railroads suffer. even
though general business Is actually m
proved. What IS further unfortunate -
that these troublesome increased eA
penses threaten to be permanent, evan
further to expand.
And it is in the face OF this controHtns
fact that the railroads OF the Country
are pleading for governmental conSen'
10 permit traffic charges which VIII ca
able them to make earnings CONNER
surate with the greatly larger business
which they are being obliged TO CO.
They who have hope for fnvesrrlsn
in American railway securities must rus.
oo1,- reIxy ,,,1Or the judicial uberauty OF