Evening star., 1926-03-03
GENERAL BUSINESS
/ DECLARED SOUND
Industrial Output Same as
Before Big Shake-up
in Stock Market.
BY j. {. ROYLE.

epeclai Dispatch to The star.
NEW YORK, March Stock
market slumps Notwithstanding, the
business fabric Of the Nation was
as strong today as at any time this
year. Leaders in railroad. financial.
industrial and agricultural, circles
admitted that fact. The stock EX-
change excitement has not reflected
business activity or profits. 1t has
reflected an unbalanced situation i'll
The speculative markets themselves.
Corporations, stocks of which were
affected on the exchange floor, were
making and selling just as MANY au-
tomobiles. Just as many steel hillets,
1ust as many units of gas and eIec-
rric power and other commodities as
they were last week. The margin
Of profit was no narrower
For months the stock market has
been a bul market. with the public
making more money than the pro
sessionals. The latter have been
waiting patiently for an opportunity
70 turn things their way and iron
out some Of the Inconsistent prices
which have been maintained. \
movement Of this sort in the stock
market picks up weight and mo-
mentum like rolling snow ball
Merger Ruling Excuse.
The decision of the Interst5, e
Commerce Commission against the
Nickel Plate merger under its present
plan Of financing WAS cited by manV
as q factor. Anv other excuse would
have done as we'll 1t viii be remem-
hered that the market underwent 4
movement Of a similar sort in March,
1925. At that time the diillcultles
IN which the st. Paul found ltsen
served as the excuse.
The decision Of the commission,
even If the news OF it had been OBJ
4ained in advance. which is strenuous
Iv denied. did not close the door in
the face OF further railroad consoll-
dations The TRANSFORMATION features
OF the Nickel Plate plan were gen
orally approved and there IS every
,7xpectation in financial circles that
with Il revised financial program the
pr0poaa1 will be reSubm1tted. Even
# the plan had been more definite
~ sat upon, the class I roads in gen
t.~al are doing remarkably well, as
their reports show.
More Customers Added.
The public utility companies are
gfatng customers at a tremendous
rate The demand for current for
operation Of household electrical
equipment alone Is tremendous. and
while enormous sums are being
spent IN expansions, the general po-
sition OF the public utility field IS
sound.
The condition Of business, as spe-
officially separated from speculative,
cannot be better indicated than by
the situation in the agricultural dis
,rlcts. since there lies huge source
Of buyinc In the huge Dread
basket" section Of the Midwest. busi-
ness generally is better than year
ago. according to a survey of the
Santa re road made public today.
Farmers are in the market for mer-
ghaudise TO q larger extent than since
900. They are ranidlv freeing them
selves OF 6ebt. Trade expansion is
general building construction is in
CTeaeing. the oil outlook is encourae-
ing and crop prospects are excellent.
Very Little Depression
depressed industries in the country
as whole are Conspicuously few en-
ployment is high and the close mar
gin between supply and demand has
restricted commodity speculation.
Production is heavy and the move
ment Of commodity prices IS slightly
downward and this is keeping retail
ers from stocking heavily.
No decided slump in the automobile
business is anticipated before the
Summer months. Truck bookings are
the largest ever known In Spring
months. Tire sales have not beer as
high as makers hoped, but are good
Nearly 81 ,0o0, 900 900 worth of build
ing has been started or sprojeCted III
The last two months.
Some Of the commodity lines inti-
gnately associated with the stock
market, such al cotton textiles, cotton
copper. zine and some others. felt the
effect of the stock market slump, but
this effect IS transitory and the old
law Of supply and demand is bound
20 Superccde it.