The Richmond palladium and sun-telegram., 1912-12-02

NEW YORK, Dec. 2.-Thanksgiving
week found the nation enjoying many
reasons for genuine giving OF thanks.
We have had period of exceptional
prosperity; a big and profitable harv-
est insuring its continuance for at
least another season. The sumulus
thus obtained from Natures Oounty
is giving fresh life TO every channel of
industry. Nor is this all. Social and
political discomfort are abating, and
the country is promised rest from
'demagogues and professional agitators.
For this, too, We must be profoundly
thankful.
So far as volume is concerned buSi-
ness conditions in the United States
are eminently satisfactory. Clearing
House returns are running ahead of
last year at the rate of from 10 To IA
per cent per week, the gains being
literally distributed in all parts of the
country, although the largest percent
age of increase is usually shown in the
big crop growing States. Railroad earn
ings are showing most flattering re-
suits. In a number of instances our
great systems have manifested sur
prisingly heavy gains in gross returns;
the result of course of heavy traffic,
stimulated by rich harvest. In the
second week of November, thirty-sev-
per cent over last year, and in previ-
Gus weeks the gains have been CORE
spondingly good. Our foreign trade
returns have broken all records and
the total for the year promises to
reach the hugs sum of $4,000, ,000,0 900.
In the last ten months new building
operations have been estimated at
sS21 100000, against 757,000,000 two
years ago. Many other instances
could be added showing our unpre-
cedented business activity, but these
are sufficiently convincing.
There is another side to the account,
however. Mere activity is too often
mistaken for prosperity. The increas-
ed cost of living has become quite as
serious a matter in business life as in
private life. Profits in many cases
show no such appreciable gain as gross
results, and in an increasing number
of cases profits are declining and rap
idly running toward the vanishing
point This is strikingly illustrated in
railroad reports, which present rela-
lively poor net returns considering
the heavy gains in gross. Upon one
of our large systems the ration of oper-
ating expenses to gross earnings had
risen from $3.50 per cent in 1910 to
71.54 per cent in 1912. A number of
roads show similar results. For this
reason the concessions granted to the
engineers by the Arbitration Board,
though smaller than at one time fear
ed, are particularly significant. They
are sure to be followed by correspond
ing demands from firemen and other
classes of railroad help; so that the
final demands upon the payroll of the
railroads is an unknown quantity and
may be serious in amount. In the case
of the railroads the situation is aggra-
waited by their imperative require
ments for new capital and the higher
rates of interest which they will be
compelled to pay. thus materially in
creasing their fixed charges. For in
stance, the New Haven road had to
pay practically per cent for 100000
900 one year to renew $50, 100000 per
cent notes, an increase of 100000 in
interest charges.
Like conditions prevail in many 9TH
er lines Of industry owing to the con-
stantly growing demands Of labor for
higher wages and the many other in
creases in the cost Of transacting busi-
ness. Only a few days ago one of the
oldest fine goods cotton mills in New
England showed a loss in operation
during the year for the first time in