The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-03-10
New York, March 4, 1916.

NCW L YIN lNh A>iO'
1t is very difficult either to account
for current tendencies in the stock
market or to predict, with anv degree
of certainty, what may be the course
of the market in the immediate future.
In recent days the stock market has
been a series of advances and de-
clines, and factors which one day
are supposed to work for advancing
prices may admit of an entirely differ
ent Interpretation on the day follow
ing. The net results, therefore, are
insignificant. though these conditions
make the stock market a distinctly
professional one, and the best place
for the average investor in these times
of uncertainty is on the outside.
While domestic financial and business
conditions are such as to inspire con-
fidence and strength in the investment
situation, the foreign situation contin-
ues to exert most depressing influ-
ence, and each week injects a new-ele-
ment either of controversy or uncer-
tainty. Thus in two respects must
the American investor consider these
foreign Influences: first, in the actual
success or failure of important armies
in the field; and second, in the posi-
bility of diplomatic eruption between
our government and one or more of
the belligerent nations. National poll
tics, and the humiliating position in
which some of our would-be statesmen
have been willing to place themselves,
must also be enumerated among the
factors that have contributed to the
recent unsettlement in the security
markets.
Much emphasis has recently been
placed upon the tremendous increase
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 much more
pleasing picture than did those Of
few years ago. This has been due not
only to the tremendous increase in
traffic 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 the carrying charges on
more equitable basis to themselves
and to their stockholders. The result
is that the latest statements show
very satisfactory increase in net rev.
enues, and this feature may reaon-
ably be expected to remain as a per-
manent factor in general railroad
business.
The annual report of the Pennsyl-
vania Railroad, showing financial con-
dition as on December 81, 1915, will
illustrate this point. Operating rev.
enues for the year increased by
$o,376,3lo to $196,628, 100 due entirely
to the expansion of freight business
the passenger business, in fact, show
ing a slight decrease Meanwhile
operating expenditures decreased ST.
555,682, so that the net revenue of the
company indicated an expansion of
$10,93200O. The company also benefit
ed by an increase in its revenues from
investments, etc, the incorporating"
income showing a gain of $3,678,042.
The decline in passenger traffic 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 3l.2
per cent compared with the unsatis-
factory result of 1914, and l8 per cent
compared with 1918. The number of
tons carried increased 5.67 per cent,
the tonnage mileage increased 3.37 per
cent, while the freight train mileage
increased only 0.43 per cent.
Estimates made by reliable leaders
in the steel trade place the total of
orders placed since January first at
4,0oo, OOO tons, valued at close on to
$2SO,OOO,0OO; and this, in our opinion,
does not represent the crest of the
boom in the steel trade. On the oper-
atoms of the past two months, profits
in excess of $75,0O0,OO0 are indicated.
1t is estimated thatsince January LIST
contracts for railroad equipment and
for steamships calling for 100000 tons
OF steel at cost of $l26,000,OO0 for
construction have been let. The or
ders booked by the car shops alone
are valued at $9,5OOOOO, and locomo-