The Washington times., 1911-01-08

place naturally, and many shrewd OBJ
servers regard that movement-the
maintenance of prices by arbitrary
agreement and the like-as largely re-
sponsibIe for the present situation.
1t is quite true, of course that rali-
ways which sought to readjust tnelr
wage scales to a lower basis after the
1907 collapse, were prevented from doing
so by Federal interference, but tine
transportation lines as a. whole selzed
upon the incident to base their nrst
requests for freight rate advances, and
some Of them apparently welcomed 1t
as adding strength to their arguments
favoring higher rates. This It is hoped
will come, in some instances at least,
but the whole affair was unfortunate,
as is clearly indicated by the fact that
in almost every instance since then the
corporations have surrendered or yield
ed to each fresh demand of labor, until
the cost of manufacture and operation
has become burdensome everywhere.
A Waiting Attitude.
The various developments of the week
had practically no influence on Wall
Street, and threw very little light on
Industrial conditions. In fact. the en-
tire country seems to have adopted a
waiting attitude. Recognized CONNER
ciaI authorities report that there is lit
tie or no change in the state of the
larger trades such as metals, dry goods,
boots and shoes, and leather, all of
which are proceeding along lines of
conservatism, which is clearly enough
shown by the falling volume of bank
exchanges. The total clearances for
the week. for instance, in all leading
cities of the country. amounted to
3, ,966 $40, ,490 or a decrease of 1872 per
cent compared with last year.
Despite this self-evident contraction,
gross railway earnings are surprisingly
well maintained OIL the whole, those re-
ported in December SHOWING a gain OF
$2.005,E or rs per ceht as compared
with 1909. Gross earnings, of course,
measure the merchandise and comrnod-
.itY movement of the country more pre-
ciselY even than bank exchanges, which
reflect the results of speculation as well
as strict commercial transactions. And
SO It is quite clear. despite the heavy
decrease in total clearances, that the
country as whole must be doing 4
considerable business. Net railway
earnings do not, as a rule, give the
same satisfactory result as the gross,
for high operating cost is telling seri-
ouslv in some directions, but a policy
OF retrenchment and rigid economy is
clearly in force, and even net results are
rot now as unfayorahle, taking the cor
porations as a whole, as many persons
feared they would be only a short time
ago.
Watching the Barometer.
The Developments in the iron and steel
industry during the week were not OF a
favorable character, but this did not
prevent an Improvement in the price
OF United States Steel stock, which was
naturally associated with Judge Gary's
conservatively optimistic comments upon
the business outlook, which, he asserts,
is not fundamentally bad. Discussion
as to prospective price cutting has,
however, resulted in still further cur
tailment in finished product, for con-
sumers show a disposition to withhold
orders, expecting concessions in price.
Probably some reduction in steel price
would be made, as in 1903, if 1t were
thought that the action would stimulate
buving, but with the railways practi-
caIly out of the market it is doubtful il
any reduction now would increase the
volume of business.
The feature of the iron industry was
the publication, during the week, of the
pig iron statistics for December, show
ing a red action 10 output. The produc-
tion for the month averaged 57,252 tons
a dav, as against an average of 63.6Jy
tons daily in November, and the output
now Is about $500 tons below the daily
average a wear ago. An analysis OF the
figures discloses the fact that the heavy
reduction was due to the reduced TAX
inSs of pig iron bv the steel works blast
furnaces. Eut, despite reduced output,
the belief prevails that the steel in
dustrv has almost touched the lowest
point of contraction, and reports from
both Chicago and Pittsburg indicate a
better inquiry from the railroads and
other buyers of structural forms.
Some Good Records,
Attention was directed to the fact.
a week ago, that because business
languished, in the financial district,
Wall Street had reached the conclu-
sion that business was languishing
everywhere The record of the years
achievements, now appearing, disprove
this. On the whole, 1910 was not a
bad business year, but the promises
of the first half were not borne out
in the latter months. Take the mat
ter of bank clearances for instance;
Dun's Review reports the total for the
whole country during the year as
$162, $3.50, 223622. which is loss OF
but IA per cent as compared with
ElMAMnIAl