The Washington times., 1924-12-26
TRADE OUTLOOK
SEEN AS BEST
IN YEARS
G. n. Markham, illinois Cen
traI President, Optimistic
Over Conditions
By G. H. MARKHAM
President Of the Illinois Central
Railroad

President Of the Illinois Central
IA, Railroad
(written especially for international
News Servicel
NEW YORK, Dec. 2S.-The busi.
ness outlook is better at the close
Of 1924 than it has been In several
years. We seem to be entering
upon an era Of industrial and com.
tnercial activity that promises TO
carry American business to new
high levels Of production and pros
perity.
The railroads are ready and
eager to contribute their part to
bringing about these better times.
Their facilities are in good condi-
tioh. In the last few weeks they
have proved more than equal to
the greatest car movement ever
required Of them. They have made
remarkable improvements in the
economy and efficiency of their
service, and they have bettered
their relations with their employees
and with the republic.
The question Of Government own.
ership has been settled by the cleo.
ton. The railroads are in readi-
ness to move forward with the
progress Of American business.
Farm Income Gains.
1t is estimated that the gross
income Of the farmers Of the coun-
try-with whom originates q large
part Of the demand for the pro-
ducts Of industrial and commercial
Operations--will be about one-half
billion dollars greater for the
1924-25 season than for the 1923-24
season, and this sum will find ita
way back into the channels OF
commerce and trade.
It is especially reassuring that
agricultural recovery has been
most pronounced where 1t was most
needed-in the wheat producing
sections Of the northwest. The
wheat growersl have made excel
lent crops and have realized on
them at better prices. These and
other factors-the acceptance OF
the Dawes plan for the settlement
of Europe's economic problems ant
the termination Of the election un
csrtainty-indicate that business
will continue to increase.
The promised growth Of the coun
tty's business is a challenge to the
railroads to keep pace with it by
constant enlargement and improve
ment of their facilities. In 192S
and 1924 the railroads have spent
more than two billion. one hundred
and thiFty-six million dollars foI
improvements and enlargementa tc
their facilities, and they have made
plans to spend another one billion
one hundred million dollars for sim
liar purposes in 1926.
Must Keep on Buying.
They must continue to make bill
on-dollar-a'year expenditures upoI
their facilities. They have beer
forced to borrow large sums O.
money to make their recent ex
Ipenditures and it is O. favorabl,
commentary upon the railway SIT
uation that they have been able t.
make their borrowings In most in
stances under very favorable terms
In the future, however, they mus
raise more and more of their nev
capital through sales Of capita
stock to investors who are willinI
to accept the risks Of business an,
this will require the strongest kim
Of railway credit.
Notwithstanding the substantial
decrease in the gross earnings O
the railroads during 1924, they bi
fair to end the year without tn
large reduction in the amount O
their net operating income tina
early in the year seemed probable
This condition has been brough
about by reason Of the grea
economies which have been put int
effect. However. 1t should be born
in mind that the railroads need t
improve their credit. not merel
hold the ground they have alread
gained.