South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-08-28

purposes. The great majority OF peo-
pie ignorantly suppose that the rail-
roads are owned BY a few rich in
dividuals. and very few people ap-
preciGte either their wide distribu-
ton of ownership through indirect
channels, or the disastrous conSe-
Quences that would tall upon the
public by injuring the railroads
There IS no class OF investments
so widely and s vitality wrought in
20 our innumerable national activi-
ties and institutions as railroad Sc
curities
Too Much At Once.
] must confess that 10 advance
wages 20 percent at one stroke is
pretty steep for the railroads TO
stand: for that is what it means to
reduce the working day TO eight
hours. II il came about by gradual
installments covering "A varying per
iod. il would be less difficult for the
railroads 20 meet. 1t occurs 70 me
that the situation calls for a cor
responding advance in railroad rates
by the interstate commerce commits
sion. Changes on both sides ought
10 be automatic. the railroads
agreeing. as fast as the commission
advances the rates. TO lower the
working hours in the same ratio
until an eight hour day is reached.
After that. should il become neces-
sary to lessen the railroad rates. the
!, g, D..
accordingly. 1t appears to me this
would be just way Of meeting the
present Ia Dor vs. railroad situation
/ throw this out merely as a sug-
gestion to equita bly, adjust the mat
ter between the railroads and the
unions. At any rate, let II be tried
until a better plan can be substituted.
For a long period there has been
a strong speculative disposition in
the stock market based upon trade
activity easy money and war in
fiatiOn. Thus far this tendency has
not had free play owing to the policy
of restraint imposed by conServa-
tive banking interests; also TO the
steady pressure Of foreign liquida-
ton which has shown itself at every
rally. Moreover, there is a feeling
that present abnormal profits are
purely temporary. and that any
undue speculation based upon the
assumption Of their continuance
might lead to disastrous conse-
quences. This week, however. there
were notable exceptions,-the out
break Of speculative activity in
United States Steel. international
Mercantile Marine and Reading at
fecting the entire market. on Tues
day this activity assumed agrees
sive proportions. These securities
reached the highest prices on this
movement, steel making a new re-
cord, and the days total sales ran
over 100000 shares: the three
shares just mentioned constituting
about one-third Of the days trans
actions. The activity I'm steel was
based upon the phenomenal earn
ings Of the company. which surpass-
ed all possible imagination and in
evitably placed the company in an
exceedingly strong position for meet
ing future emergencies. These pro-
fits naturally created a belief that
the company cannot indefinitely re-
fuse stockholders a larger share in
present prosperity. AS for the future
of the steel trade. it is recognized
that war orders cannot last much
longer. and il is peace, not war,
which in future must determine the
basis Of progress reconstruction
demands after the war will. as is
already known, be enormous. Neither
Great Britain nor Germany will be
able for some time TO come to meet
the demands upon them from this
source. The devastation of Europe
will cause an enormous demand for
steel to restore railroad plant equip
ment factories. machinery, etc: de-
mands which will not be satisfied
without our help. II is also estimat-
ed that five or six million tons Of
shipping have been lost. displaced
or worn out by the war Great Bri-
tain has already suffered 20 the ex-
tent of 1000, 900 tons through sub
marines depreciation and extra
wear. Her shipyards will face a ship
buliNlAl- Dooiu dAleI the war. OuE
own shipyards are overwhelmed with
orders. and probably will he for two
or three years 10 come, while ship
building plants are being started all
over the world; all Of which means
a tremendous demand for steel. so
that the United States, much the
largest producer i'm the world. will
be called upon TO fill a considerable
portion OF this void. Prices may
not continue as high as now. but
with such demands in view, no great
decline will be posi- BILE Whether
in war or peace. the next two or
three years are almost sure to be
periods Of great activity in the
American steel industry and the
volume of business will be large.
though the ratio OF profits may de-
cline.
Trade Outlook Good.
While this is the period Of sum-
mer quiet, the trade outlook is re-
garded as satisfactory. and this in
spite Of a harvest which promises to
10 baIow- tho rO-vaar avaraoa Cror,,