St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1915-02-03
The Business Situation.


Everyone likes to predict an i'm
provement in business and it is GER
tainly desirable there shall be no
further business decline in this coun-
try. The actual falling off in bust
ness is we'll illustrated in the quar-
terly report of the United States
Steel Corporation and the statements
regarding New England railroads re-
Gently made public. United States
Steel passed it's dividend on it's COM
mon stock on January first and gave
public statement that the total
earnings for the quarter ending Sep
TENDER 80 were $22,276,0O2 while
for the quarter ending December 81
they were $1O,933,17O, falling off
in three months of $11,342,832.
1t is publicly stated that the Bos-
ton and Maine Railroad Company
has fallen about 100000 short of
earning its expenses during the past
year and has notes amounting to
practically $23,OOO,O0O coming due
on March 1 and no funds to pay
them. During the past year the
New York, New Haven and Hartford
road has passed it's dividends and,
according to Pres. Elliott, has earned
only $268,622.87 above its. expenses,
taxes and fixed charges compared
with $S,922,237.72 the year previ-
Gus. On each of these roads i'm
provement work is almost wholly
stopped and rigid economies have
been put in force that under ordi-
nary circumstances would have
shown a great increase in net earn
ings of the roads.
So in these three instances, which
are typical of general business of the
country, the unfavorable showing is
due to decrease in business in very
recent times. The decrease in the
railroads business means decrease
in business throughout the territory
means a decrease in structural work
throughout the country. In neither
case can it be attributed to the Euro
pean war but must be the result of
conditions at home. The absorbing
question is whether or not home bus
mess will continue to lose in volume
for the next six months as it has in
the past
With business at such low ebb
prediction of improvement seems
safe. But what are the real condi-
tons? No one hears of any large
enterprise in new business in Ameri-
ca. Americans will continue to re-
ceive some orders from European
countries at war but these will fall
far short of the volume of business
America furnishes in normal times.
All that America promises for the
coming season is the maintenance of
whatever business is able to keep in
operation and practically nothing in
the development of new business. So
taking everything into consideration
we dare not predict much immediate
States. There seems to be good rea-
son for the agricultural interests to
plan for as large a. production as pos
sible. Admitting that dull industries
will curtail the home market for
farm products to some extent the
foreign markets promise to demand !
more than usual and at good prices.
Then too, America is not likely to
lose much of its industrial popula-
ton, even if it is idle, because there /
Is no other country to~which it can
emigrate with prospect of employ
ment. The idle are likely to stay
here and must have at least the min
mum amount of food to sustain life.
In view of the actual conditions
how foolish sounds the remark Of
he president that our business de-
preston is "a state of mind" The
1uty of the hour is to acknowledge
he fact that industry is seriously
depressed and study methods by
which it may be- revived. European
is at low ebb but capt.
al dares not venture into any long
line venture until it knows that the
American market is safely restored
% American manufacturers.