The Bridgeport times and evening farmer. (Bridgeport, Conn.) 1918-1924, 1918-06-04
HENRY CLEWS
WEEKLY LETTER

which was expected, Dut their ret1re-
ment cannot in any sense be regard
ed as decisive. The Allied armies
are unbroken; they have not been
driven into the sea, and the way 10
Paris is still closed despite the furious
onslaught. No real progress toward
winning the war has been made by
Germany, and confidence in high AL
lied circles is unshaken, as is shown
in the expressions of the big leaders,
as well as in the fact that since the
great drive began in March, British
conSols have risen from 81 to Sc Y.
The Kaiser is evidently doing his ut
most to hearten his war-weary peo-
pie.
The government is much the big
gest factor to be found in business
today, and the extent of it's opera
tons is not by any means appreciated
by the general public. About so per
cent of our wooden machinery is
working for the government; so per
cent of the knit goods industry; 40
per cent. of cotton goous product and
about 10 per cent. or silk fabrics. In
ether lines of industry the output for
the government Is also enormous.
Over so per cent Of the chemical in
6ustry, which has been greatly ex-
panded, is on government work;
while in the case of the steel industry
It is known that fully 80 per cent. of
the industry is directly or indirectly
working for the government. So
much for the effect of war upon in
dustry. The country's whole energy
is being more intensely centralized
upon winning this war, To that end
our Industrial machinery has already
been socialized to an extraordinary
extent, and the process goes steadily
on with no signs of having as yet
reached the end. Our production
Of luxuries is gradually being curtail-
ed or stopped altogether; so, too, are
n any assures and unnecessary arti-
Giles. The latest and most important
step in economic mobilization IS the
amalgamation of the express compan-
les a natural sequence of untication
of our railroad system. The several
large express companies are to be con-
solidated with a capital Of $4,000
600 and then leased to the Railroad
ADMINISTRATION, who will control their
operations somewhat as with the rail-
roads Dividends will be allowed on
a basis of per cent, and when more
is earned the excess Is to be divided
between the government and stock
holders on certain defined lines, the
government taking the largest share
of increased profits.
Despite war news, the stock market
maintained a good front, and the con-
fi6ent undertone exhibited for several
weeks past is undated. Strength
was most marked in the railroad d.
vision. These shares have been
visibly strengthened by the changed
attitude of the government For
years their credit had been steadily
Undermined by repressive action of the
Interstate Commerce Commission
the result being gradual impoverish-
Inent, declining credit and run down
physical condition, Gripping the
roads until unfit for meeting war con-
ditions. The Administration wisely
dismissed all prejudice; faced facts as
they are; met a critical situation by
operating the roads as a unit; granted
higher wages to labor; advanced
freight and passenger rates to COM
pensate, and provided funds for need
railroad crisis has thus far been
handled by the government in a bold
Intelligent and businesslike manner
In time the results should be better
service to the public, solution of wal
traffic problems, reasonable treatment
of labor, and the preservation of rail-
way credit; so that the roads under
government protection during the wa,
should afterwards be returned to their
owners in better condition than when
taken over. 1t is this radical change
in the railroad situation which has
had much to do with the late slow but
sure advance in this section of the
market.
In the industrials Srere has beer
more or less irregularity and weak
ness, which also can be attributed tt
war and government, to price fixing
to government regulation, to actor
against profteering, to taxation o.
excess profits, to war profits, and tt
expectation of a big increase in take:
next year; all of which consideration
will inevitably curtail profits and IN
duce more or less softness in values
of the leading industrials. That tn
decline was not greater is because u
most cases market values had not ad
vanced in proportion as profits in
creased. Fortunately, there has beef
no imitation in war industrials CORES
ponding to the rise in profits; henc
the market has been happily spare,
the crisis that would have surel
come under ordinary circumstances
Whatever imitation the war ha
brought 1t has been restricted mainl
to commodities and wages in certain
industries. In securities and credi
there has thus far been no inflatio
of importance. Now that the wa
loan is out of the way, a few neI
issues are being offered to the publ
and generally at more attractive rate
of interest. Several municipal issue
were successfully placed, and NOR
are expected to follow, until the gov
eminent again begins borrowing fror
the banks in anticipation of the mex
loan, which is expected in the fal
The outlook for utilities, such as ligh
power, street railways, telephone: