The Detroit times., 1916-01-31
No Cessation in Sight
for Active General
Business
WEEKS MARKET
REACTI0NARY
Influx of American Sc
curities Had De-
pressing Effect

Jul NINA va AANN WAA n t'NAN AANAA y
Clews, the New York banker This
representative corporation OF the
steel trade had risen froE pauper 10
Prince and more than doubled In
price Ia exacly &? short months.
Much stock had been accumulated
IN anticipation OF "a resumption OF
dividends. When this occurred
heavy liquidation naturally followed.
a wear ago the company passed its
dividends. earnings being the lowest
en- record This week dividends
we're resumed az the per cent
rate, earning having touched the
highest point In the history OF the
company. The quarters net earn
lngs amounted to S5l 100000. or S..
100000 IN excess OF any previous
quarter. and compare with Sl0900,-
600 q year ago The company's earn.
InEs thus reflected the unexampled
prosperity OF this great industry. a
prosperity the end OF which is by
no means in sight, since the whole
trade is still pressed with orders az
highly profitable prices.
Another depressing influence was
the continued influx OF American
securities. resulting from effects OF
the British mobilization plan. This
movement, which has almost put an
end to gold imports for the time
being. may or may not be continued
for some time 10 come. Much de.
pends upon the progress of the war
Only a portion OF these stocks,
however. have actually come upon
the market. the great bulk having
been accepted by our banks bankers
and trust companies as collateral
upon leans These large holdings
OF securities consequently hang over
the market, AMI are likely to be dis
tributed more or less freely on
every favorable occasion, A tight
money Iuarket. or a sharp rise In
values might easily preCipitate fur
ther liquidation AZ the same time
very considerable sums Of these
stocks have gone permanently into
strong boxes.
These facts show that relatively
little new money - going into rail
roads or into new indGstrials. and
yet the fact remains that Ameri
cans are willing within certain linn
it's to buy back their securities at
comparatively high prices. from
which Il IS 90 be inferred that the
railroads would have no difficulty in
securing ample new capital for nee
cssary Improvements, 1t home con
ditions only permitted. our rall'
roads must be given a fair chance,
not only 10 make reasonable profits.
but also to make the necessary en-
largements The labor problem OF
the railroads presents some rather
serious possibilities. New demands
ere threatened which. II carried out,
would prove heavy tax upon their
financial resources. Already labor
secures about two-thlrds OF every
dollar the railroads earn, and the
average wages Of railroad men have
risen in hve years from S620 TO $500
year.
Between 1910 and 1914 their pay
rolls have Increased about S2bO0O0,-
coo on The same number OF men.
and the total payroll Of the railroads
aggregates about $500, 100000 per
YEAR. Railroads are owned by about
COO 600 stockholders who, II Is said,
secure about , per cent OF the gross
earnings OF the railroads, while en-
ployees receive about 81 per cent.
American railroads have been serf
ously crippled by these and other
burdens Of public nature They
have jurt EMERGED fram a period OF
sharp contraction. and have had to
endure m era Of severe hostile pup
lie opinion In retri5ution OF past
mistakes. Only recently did the
government allow them to partially
recoup themselves Tor these In
creased burders by an advance In
rates. which has NOT even Yet been
granted 20 all scctions.
Fortunately, railroad revenues are
feeling the stimulus OF trade activity
the net earnings Of the roads report
ing for November showing a gain OF
over t5O.0OO.Oo0 should this pros
perity continue. the demands OF
labor will. Of course, be less serious.
But much OF the present activity Is
in the nature of initiation and has
not yet proved permanent. though
for the time being IL renders the
wages question much less acute.
December foreign commerce re-
turns showed thc largest export on
record. the vhue of merchandise,
shipped being over S359,0oooo0. and
making the total exports for 1915 3d.
55I 600 900 or q billion dollars ahead
~ All previous records The excess
Of exports over imports for 1915 was
st.772. .000. 600. he average excess OF
p.rvcu years being about $4,000
U0t. L excess Of exports over I'm
norris In December was sis7 600 900.
an increase Of s47,OO0,ooo over ne.