The Washington herald., 1912-10-07
gRlM REPORT
TO HELP A|IRIET
Record Tsnnass f6r 1ailrsadb WiH
Be Hads Certain y tie Coz.
srnnsnt's Figures
MmEs nczrAsE Their OUTPUT

New York, Oct. 6-Thet United States
government viii take Z report wednes
day ons the grain harvest q the countr,
that win break all records asd put al
end to all doubt on the subject Of the
erpps. This report has not been dis.
counted In the stock market. 1t win
make certain Q record tonnage for rail.
roads. both Of agricultural products and
Of manufactured things in return. /,
VIII insure a shortage of cars for a
long period and will compel all the
railroads to spend money on q large scale
for the next year. The congestion OF
freight that will undoubtedly develop
VIII make shippers more willing to zee
reasonable advance in freight rates.
1t IL understood that the arbitration
board will withhold its report ON the
question Of advancing the wages Of rail-
road men until after the election. So
great is American prosperity that Eu-
ropean money rates must be advanced
in order to furnish, funds for moving
American crops. The bank Of England 8
rate Of per cent Is too low to last
long. The Bank of France begun
strengthening its position by withhold
ing gold payments this week. There Is
nothing in International affairs to dis
courage American stockholders.
Many peoplf are holding away from
ehS oeoSh AhAHRCN vi oNCoohl "a PohliCos
They fear tarih agitation. forgetting that
nothing can be done for q year at the
earliest in that line.
Tobacco Companies Suffer.
The independent tobacco Companies
that were fighting the trust for so many
years find themselves in q deplorable
condition. Being brought within the law.
the various parts OF the tobacco trust
have begun aggressive campaigns, and
are flooding the markets with goods
that are so widely advertised as to
overshadow the independents. Some Of
the strongest Of the independents. recog.
mixing the situation. have banded them
selves together and will soon come be-
fore the public in the shape Of a strong
new combination. They are backed by
Daniel G. Reid. Norman B. Ream. Hen
~ c. Frick. and other financiers Of the
first rank. The new company will have
no connection with the other American
tobacco outfit. but viii begin business
with plants operating TO an extent that
will enable II to pay dividends from the
start on its preferred stock. and at end
of the year to have earnings Of at least
10 per cent for the account Of the COM
mon.
Railway earnings will, of course, con-
tinue to improve. In view OF the great
tonnage that the big crops have made
certain. The operating expenses will
not increase as rapidly as the gross.
Dividends, therefore. viii not be re-
duced and many increases Of dividends
must be expected IN the course of the
next year. Railroad stocks are growing
In favor.
In the copper stocks a remarkably
strong situation exists. Not only is the
metal high. but the stocks are relatively
low. The growth OF general business is
sach that the use Of copper must be in
creased right along.
Mines Increase Output,
The mines have increased their outnut
as rapidly as possible In the last few
months and are now turning out more
metal than ever before in the history of
the industry. The demand, however
grows faster than the consumption. and
t is the fear Of producers that this de-
mand Will force prices up to such a high /. /.
evel that many Of the idle and high-cost-
of-production mines will be brought into
operation Big companies do not want
copper metal to go higher.
Conditions in the steel trade could hard
~ be better. Nobody is so much sur
orised as the directors Of the companies.
and many Of them have neglected to buy /
he stock that they want for investment. |
healthy demand for the common stock /
u the trust is. therefore, certain and
here is little doubt about its making
new high records within the next few
months. The company has cleaned NM
1early all Of Its low-price contracts, and /
Profits on all output should be above s1a
ton by the end Of 19lc
The price of meat and of some other
oods Is going to cause disturbance, be-
,ause no promise can be held out of
over prices in the immediate future. II
8 true that the crops are the greatest on
ecord. but 1t is also true that. owing to
ne small crops of last year, the farmers
we're compelled to send thousands of ami
nails to the slaughter house because they
lad no feed to keep them over. Now
here is plenty Of food, but not enough
nimals to eat 1t, and 1t will take two
ears at least to restore the number of
nirnals to the normal. The public must
e patient with high prices of meat for
mother year at leaA