Conditions with the Railroads 



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tt is generally recognized that business with the railroads of the 

 country constitutes a very reliable barometer of general trade condi- 

 tions. Hence, information coming directly from the heads of the 

 various big systems of the United States can well be considered as 

 reliable to the extent to whieh these statements express opinions of 

 conditions in the business world the country over. 



The Eailway and Engineering Review of Chicago, with an idea of 

 forming an analysis of such conditions, recently addressed letters 

 to the presidents of all the big systems throughout the country. 

 Hardwood Record takes the liberty of reproducing some of these 

 letters, the majority of which contain a very optimistic tone regarding 

 the remaining months of the calendar year 1913, but are rather doubt- 

 ful as to business after the first of the year. 

 The letters follow: 



We expect to bare the same or greater gross earnings tlie balance o£ 

 this calendar year than last year. We do not think the banks in the 

 West are loaning very freely for the purpose of carrying grain in storage 

 and this will hasten its shipment. The Northwestern has a very good 

 grain crop indeed, and I think our line is better in this respect than any 

 other western road. We have suffered some loss in Nebraska, but not 

 great. Our general business also promises well. After the first of Janu- 

 ary I think it is somewhat speculative as to volume of business. 

 W. A. G.iRDNER. President Chicago & Northwestern Uailwat. 

 The prospects of railway business during the remainder of the calendar 

 year though the territory which the Norfolk & Western Railway traverses 

 looks very favorable. As beyond the period of time referred to, the indi- 

 cations are not so favorable, and we anticipate a marked reduction in 

 railroad business due to the uncertainty in the minds of inventors and 

 manufacturers as to the result of the proposed tariff bill, income tax hill 

 and currency bill. 



L. E. Johnson, President Norfolk & Western Railway. 

 I am of the opinion that prospects for railway business in tlie territory 

 tributary to this railroad during the remainder of the calendar year are 

 excellent. 



W. K. Nixon, Receiveb and Chief Operating Officer, St. Louis & San 

 Francisco Railroad. 

 With the uncertainty still existing as to the outcome of the corn and 

 cotton crops — though the latter at the present writing promises a very 

 good yield — and the unsettled feeling of merchants and manufacturers as 

 to how they will be affected by the pending tariff and currency legisla- 

 tion, we cannot at this time predicate with any degree of surety the busi- 

 ness conditions for the latter months of the year. 



With the exception of some parts of the West, where the corn crop has 

 been injured by the drouth, an optimistic feeling as to the future busi- 

 ness generally prevails. On the whole we look for a fair business, as we 

 hope to make up by an increase in the shipment of other commodities any 

 shrinkage there may be in the corn movement. 



B. F. Bush, President Missouri Pacific, Denver & Rio Grande and 

 Western Pacific. 

 I look for quite prosperous business in the Northwest. Last year we 

 had a very large crop, and this year a good crop, and there is nothing to 

 hamper the continuance of good business that I can see. 

 E. Pennington, President Minneapolis, St. Paul & Sault Ste. Marie 



Railway. 

 On the basis of traffic now moving in the territory served by our lines 

 and the opinion of those engaged in such traffic with whom we come in 

 contact, the revenues of the railroads are going to be large during the 

 remainder of the current calendar year. The difficulty of the railroad 

 situation is not in revenues, for they have steadily increased during 

 recent years on practically all representative railroads in the United 

 States, but it lies in the dangerously narrow margin between revenue 

 and income — what used to be called "net" — because expenses have in- 

 creased in greater ratio than revenue. The need of the railroads today is 

 to widen this margin. 



Fairfax Harrison, President Chicago, Indianapolis & Louisville 



Railway. 

 Wheat crop in our territory was fair and is about half moved out. 

 Corn crop badly damaged by heat and drouth. Cotton is in fair shape 

 at present as an average but badly burnt in spots and liable to still 

 further damage in default of rain very soon. Fruits and small crops 

 were generally good. Citrus crop on Pacific coast promises fairly good 

 recovery from freeze of last year, and unless we get a repetition of that 

 calamity should give fairly good movement, though not normal. 



On the whole railroad prospects are fair except for drastic, unintelli- 

 gent legislative, congressional and official acts. Nothing the matter with 

 us but too much politics. 



E P. Ripley, President Atchison, Topeka & Santa Fe Railway 



System. 

 The crops have been very seriously damaged in Missouri, Kansas and 

 Oklahoma, and the cotton crop in Texas will not be more than seventy- 



— so- 



live per cent of last year's, if that. Just what effect this will have upon 

 the movement of general business, I am unable to say at this time, but 

 I look for quite a large decrease in the movement of traffic during this 

 fiscal vear. We may perhaps be able to make reasonable returns for the 

 balance of the calendar year, but after January 1st I look for a very 

 light traffic throughout the Southwest. 



C. E. ScHAFF, President Missouri, Kansas & Texas Railway. 



Mr. Willard. in commenting on the general business conditions of the 

 country, after making an extended inspection of the Baltimore & Ohio 

 lines, has stated that be found them generally healthy : and while the 

 volume of business for the coming year might not be as great as last year, 

 he considered the .situation to be satisfactory. 

 James S. Murray, Asst. to President Baltimore & Ohio Railroad. 



With the corn crop failure in Kansas and southern Nebraska, the out- 

 look is not comfortable with our lines in that territory. In northern 

 Nebraska we will have about forty per cent ot a normal corn crop. Our 

 business will be reasonably good in Colorado, Wyoming, Utah and Idaho. 

 It looks to me as if we are having a recession in business, from which 

 we will not recover within a few months. I'olitical and financial dis- 

 turbances always produce recession instead of stimulation. 



A. L. MoHLER, President Union Pacific and Oregon Short Line. 



The outlook for business during the remainder of the calendar year !s 

 good. The bituminous coal trade, which comprises seventy per cent of 

 the tonnage of this line, promises exceptional activity. Because of the 

 greater cost of operation and maintenance, due to the increases in wages 

 and cost of material, the roads will not, unless they are enabled to in- 

 crease their rates. Ije able to improve their net earnings. 



M. J. Caples, Vice-President Chesape.ike & Ohio Railway. 



W^e anticipate a large crop of sugar cane and an unusually large yield 

 of rice in Louisiana. The cotton crop in Texas, whieh promised to be 

 as large as last year, has been impaired by the recent drouth and damage 

 by boll weevil. 



The deciduous fruit crop of California is not as large as last year, but 

 the orange crop promises to be almost as good as the average. The de- 

 mand for lumber has somewhat diminished, both on the Pacific coast and 

 in the Southwest, and general business reflects a conservatism which is 

 doubtless due to the scarcity of money and a desire to await the outcome 

 of tariff legislation and a realization of the crops. Jlerchants are not 

 overstocked and will therefore be in a position to purchase freely when 

 existing uncertainties shall have been cleared away. 



Julius Kruttschmitt, Chairman Southern Pacific Company. 



Wood Interests Defend New York Code 



The hearing before the building committee of the board of alder- 

 men of New York City on provisions of the proposed new code cover- 

 ing the use of wood trim, showed the weakness of the case of the metal 

 trim interests more than anything else. The new code as originally 

 drawn would exclude wood trim from all buildings over one hundred 

 feet high, and exponents of metal trim are in favor of it. 



The committee when drawing up the new code had in mind only 

 the question of reducing the fire hazard and it was for the opposing 

 interests to show whether or not the old code did not sufficiently 

 cover this item. The metal trim men read a lengthy statement 

 dealing with generalities and did not show their product to be a 

 fire-resisting material superior to wood under similar conditions. 

 They claimed, for instance, that the loss of life in the famous 

 Triangle shirtwaist fire would have been lessened if the building 

 had been trimmed with metal. This is ridiculous on its face for 

 everyone knows that the building was not equipped with suflScient 

 fire escapes and the victims could not get out, while the rapid spread 

 of the flames was due entirely to the materials used in the manu- 

 facturing business and not because of the construction. The metal 

 men avoided the item of cost which is admittedly in favor of wood. 

 It was shown that oak doors in any quantity could be furnished 

 erected at .$17, as against $40 for steel doors. The wood trim in- 

 terests argued that since it has not been shown that the use of wood 

 trim increases the fire hazard it would be a great injustice to force 

 builders to install metal trim and doors at a cost running from 

 three to five times that of wood. There is no popular demand for 

 metal trim in hotel and apartment buildings, while wood is greatly 

 superior because of its artistic features and lasting qualities. 



The wood trim interests were well represented and there was a 

 good attendance of lumbermen. It is confidently expected that tho 

 code will be modified leaving the trim provisions as now in force 

 with respect to hotel and apartment buildings. 



