Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-03-05
Professionals in Control and
Many Elements Contribute
to Uncertainty.
BIG RAILROAD EARNINGS
AN ENCOURAGING FEATURE
Nearly SO, DOC, 900 to Be Distributed
in Dividends by Two Leading
Steel Companies.

hcult either to account Tor current
tendencies in the stock market or to
predict, with any degree of certainty,
what may be the course of the market
in the immediate future. In recent days
the stock market has been series of
advances and declines. and factors
which on one day are supposed to work
for advancing prices may admit Of an
entirely different Interpretation on the
day following.
The net results. therefore. are insig-
nificant, though these conditions make
the stock market a distinctly profess
sional one, and the best place for the
average investor in these times of I'M
certainty is on the outside. While do
nestle financial and business condi-
tions are such as to inspire confidence
and strength in the investment situa-
ton, the foreign situation continues to
exert a most depressing influence, and
each week injects a new element either
of controversy or uncertainty. Thus in
two respects must the American in
weston consider these foreign infiu-
ences: First, In the actual success or
failure Of important armies in the
field, and, second, in the possibility of
a diplomatic eruption between our gov
eminent and one or more of the bel
1igerent nations. National politics and
the humiIiating position in which some
OF our wou1dbe statesmen have been
willing to place themselves must also
be enumerated among the factors that
have contributed to the recent unsettle-
Inent in the security markets.
Earnings Of Railroads.
Much emphasis has recently been
in the earnings of the great steel
plants. While their records have not
been duplicated by our stalwart rail-
road systems, current statements of
railroad earnings paint a much more
few years ago. This has been due not
only to the tremendous increase in
traflc that has resulted from the new
era Of business expansion. but also to
the change of sentiment in govern
mental supervisory agencies whereby
the roads have been permitted to
regulate, their carrying charges on
more equitable basis to themselves
Is that the latest statements show
very satisfactory increase IN net rev.
"nues. and this feature may reason
ably be expected to remain as a per-
lnanent factor in general railroad
business.
The annual report of the Pennsyl-
vania railroad: showing financial con-
dition as of December 81. 1915. will
illustrate this point. Operating rev.
cues for the year increased by
S9.s;s,s1s to slsS.62s.17o. due entirely
10 the expansion of freight business
ing slight decrease. Meanwhile operat-
ing expenditures decreased s1,555, $50,
80 that the net revenue of the COM
rany indicated an expansion of s1O,-
$4,000. The company also benefited by
an increase in it's revenues from in
vestments. etc. the incorporating"
income showing a gain of s3,s7s.042.
Decline in Passenger Traffic.
The decline in passenger trafic was
natural in view of the business depres
sion in the early part of the year, but
later it showed Improvement. Rail-
way operating income increased 312
PER cent compared with the unsatis-
factory results of 1914, and IS per cent
compared with 1913. The number OF
IONS carried increased 5.67 per cent.
tne tonnage mileage increased s.37 per
increased only .43 per cent.
Estimates made by reliable leaders
IN the steel trade place the total Of
or onn soo placed since January 1 at
s2oo,ooo,000; and this, in their opinion
aoes not represent the crest Of the
boom In the steel trade. On the opera
ions OF the past two months profits
IN u. excess OF sl5.0oo.o00 are indicated
IL is estimated that since January /
contracts for railroad equipment and
Ior steamships calling for soc 900 tons
OF steel at cost OF s126,00o. 900 for
construction have been let. The or
GERS booked by the car shops alone
are valued at s9.500.000, and locomo-
i've builders have accepted contracts
involving total of 81, 500 000 In the
shipbuilding industry every American
yard is said to be engaged to its full
est capacity for several years Orders
rave oeen placed for forty three boats
since January, and 334 ships are al
ready under contract. rs for the mer-
cnant marine and ffty-nine for the
nited States government. II is esti-
mated that 40 per cent of the export
steel sales have been for the manu-
!acture of war munitions in Europe
In addition heavy sales have been made
70 domestic manufacturers OF shrapnel
ana nigh explosive shells. which will
eventually find their way across the
Atlantic.
Sfac1 IL