Evening star., 1926-11-01
MEN AND MONEY
BY NJ. S. Rukeyser.
tCopyright. 1920

Charles Henry Markham, chairman
of the Illinois Central Railroad. who
many regarded as the ablest railroad
executive in the country, sees no
grounds for business pessimism.
In discussing the current railroad
prosperity with me in his New York
Office, Mr.. Markham observed: "The
railroads are in a stronger position
than they have ever been in before.
Never before has there been such a
widespread appreciation on the part
of travellers and shippers Of the serv-
ices which the railroads render"
Asked concerning the general bust
ness outlook Mr.. Markham asserted
that there was, in his opinion, no
basis for pessimism. Out in the Mid
die West. he added. the wheat States
have good crops and fair prices.
I'm the South, am hoping that the
extraordinary size Of the cotton crop
will help to keep up purchasing
power.
THE current skepticism toward the
business outlook in some quarters is
based on no special analysis of exist
ing conditions. but merely on the
general assumption that when busi-
ness is good it must get worse, just
as when it is bad it must get better"
DpRdn DIS ScCtlUH
Mr. Markham was schooled for the
business of railrOading in the ranks.
At the age of 20, he began his railroad
career in 1881 as a section laborer on
the Atchison, Topeka and Santa Fe.
What is there in Mr.. Markham that
differentiated him from the other Sec
ton hands with whom he started at
par?
Mr.. Markham ascribes his own ad-
yancement to the habit Of doing
small things well-tO what he calls
"a zest for small things" Mr.. Mark
ham in his maturity developed broad
er qualities of leadership, having
singular capacity to get large groups
of men to work together for similar
aims Mr. Markham has built in the
Illinois Central perhaps the smooth
est working railroad machine in the
country. With his genius for the
operating side, Mr.. Markham has de-
veloped a school of railroad leaders.
many of whom have gone to other
companies l.. w Baldwin, president
of the Missouri Pacific, is one of the
outstanding graduates of the Mark
ham school.
The Illinois Central system is the
outstanding North and South railroad
of the country. Its long and con-
sistent record as a dividend payer has
given a relatively high investment
status to it's securities. Earnings in
recent years have been somewhat
held down for accounting purposes
because of huge expenditures for de-
velopment, particularly in respect TO
electrification. When the electrlfica-
ton program is completed, monthly
reports will give truer picture of
Of hn
Depression From Plenty.
In the current discussion concern
ing the cotton crop, we are con-
fronted with the paradox of depreS-
sion resulting from plenty.
AS a matter of fact. there are in
dications that the South Will get ST.
900 900 900 from the current crop, de-
spite the marked slump in cotton
prices. Before the war. that would
have been considered bumper yield
in cash, although it is somewhat un-
der the figures for the last three
years However, in figuring the pur-
chasing power of the South for the
next few months, it is well to remem-
Der that the farmers are freer from
indebtedness than they have been
since the big slump in 1921. In previ-
Gus years, part of the proceeds from
the crop was used to efface outstand-
ing debts. A larger proportion of cur
rent proceeds will be employed for ac-
tual new purchases. Thus it should
be evident that the purchasing power
of the South. though somewhat af-
fected, will be less disturbed than a
superficial reading of the figures
would indicate.
The effect Of the unprecedentedly
large crop on the textile interests will
bear watching.
The textile trades have been de-
pressed during the recent cycle of pros
perity in other industries. Before
the break in cotton, many felt that
the textile industry was on the verge
of q great revival, after the postwar
slump. Cotton goods were actually
rising In price after the big break in
raw cotton started. The far-reaching
decline in the raw material. however,
checked the squirt in goods.
Numerous factors favor expansions
in the cotton textile trade, which has
the additional advantage of a possible
spur to consumption from the prevail
ing low prices. Moreover, accumu-
lated stocks of cotton textiles are low,
as a result Of the new custom of hand
to-mouth buying. by the trade.