Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
Last fall the railroads began ordering quite liberally, and the stim-
ulus of their business was felt by the steel mills, but since Congress
convened there has been a disposition on the part of the leading
roads to await legislative developments, and the purchase of equip-
ment has been notably light.
The equipment industry has been affected seriously in recent
years by public sentiment as reflected in legislation and govern-
mental restriction of the railroads. Formerly the ups and downs
of the equipment manufacturer coincided with the rise and fall of
general business activity. When times were good and earnings
increased the railroads bought liberally to increase their facilities
for carrying traffic. When the reaction came in general business,
and especially when the farmers suffered from depression in prices,
the earnings of the railroads fell off and they had to trim expendi-
tures closely to meet the interest on their bonds. Until recent years
the purchasing department of a railroad was controlled solely by
commercial policy and the ability of the company to meet the bills.
The current liabilities of railroads, as reflected in their annual bal-
ance sheets, generally exceeded their current assets and they had no
financial reserve to carry them through years of depression.
Since the Elkins law was enacted there has been a great change
in the financial condition of American railroads. Their earnings
from freight traffic have made a surprising growth, showing a
larger increase than the general business of the country. Defaults
and receiverships have been rare, occurring only as the result of
reckless management. The credit of conservative railroads has
made it possible for them to sell bonds and stocks even in the de-
pression following a panic. Enormous amounts of capital have
been used to build or acquire branches and connecting lines, and
all the conservatively managed companies have accumulated large
surplus funds. For several years the cash carried in the treasuries
of leading railroads has amounted to $300,000,000 to $400,000,000,
and even in the depression following the panic two years ago these
treasury funds were not seriously impaired. Current cash assets now
exceed current liabilities in the balance sheet of the average large
system, without taking into account some $5,000,000,000 of securi-
ties owned by American railroad companies.
T TNDER the conditions that prevailed years ago, a railroad was
V_/ compelled, by its dependence on current earnings, to pay
the highest prices for its equipment, because it could only make
purchases when business was good and prices were at the highest
level. Since the railroads have become prosperous and have ample
reserve funds, they could effect a considerable saving if they would
make their largest purchases when prices are low. During the past
two years the equipment industries would have taken business at a
small profit to keep their plants going and the railroads could have
earned more money the past winter by having the facilities to handle
the business tendered them. Machine tool interests have the same
complaint to make as to their railroad business. Instead of keeping
up the equipment of repair shops, by buying at lowest prices in dull
periods, the railroads defer the purchase of machine tools until
their increased traffic compels this department of their activities to
receive attention. The railroad demand then comes as an addition
to the already enlarged demand for machine tools from manufac-
turers, difficulty in getting deliveries becomes pronounced and a
period of feverish haste in getting out tools is precipitated, which is
detrimental in every respect.
It is true that the financiers in control of the leading roads are
often interested in stock speculations and probably the funds that
might be used to improve the physical properties of the carriers are
then needed in the banks to carry the stock market. "Rut now,
when funds might be released for necessary improvements, the
railroads arc unable to come into the market as liberal buyers be-
cause the new element of caution on account of expected legislation
has entered into their policy.
James J. Hill, in a speech some two years ago, stated that a
fabulous sum would be necessary to keep the railroads up to the
point of efficiency which the growing interests of this country
demand.
Mr. Hill's note of warning should be heeded and the business
interests of this country will suffer very seriously unless the mana-
gers of the railroads themselves wake up to a fuller realization of
the present needs of the industrial interests of this country.
REVIEW
IN LIGHTER VEIN
"Tommy, how dare you beat your little sister?" Tommy (aged ten) :
"Oh, if you mayn't beat your own sister I'll chuck up family life alto-
gether!"
Knicker: "We are told the weather can be predicted for a month
ahead." Bocker: "What's the use? You can't keep an umbrella that
long."
A CURIOUS HEALTH SUGGESTION.—The crematory's the thing
wherewith to fortify the health of our citizens.—East Liverpool (0.)
Review.
Customer: "Waiter, this steak doesn't smell very fresh." Obliging
Waiter: "Very sorry, sir; get you another, sir; you see, most people have
colds about this time of year."
"Honesty, my son," said the millionaire, "is the best policy." "Well,
perhaps it is," rejoined the youthful philosopher, "but it strikes me you
have done pretty well, nevertheless."
ALWAYS A WAY.—"She is reputed to be a cold beauty. Did you
win her heart with orchids?"
"No; I sent some very fine imported sausage to her dog."—Pittsburg
Post.
THE SOCIETY WHIRL.—"Dear, can you help me to receive next
Thursday?"
"Sorry, love, but I'm on picket duty with the shirt-waist strikers.'
She (angrily): "Why do they deny the right of suffrage to women
because they are not soldiers? Don't you think women, if called on,
could fight?" He (deprecatingly) : "I suppose they could if it came to
the scratch."
Stupid Man: "I've a new typewriter, dear." Wife (coldly) : "In-
deed!" Stupid Man (enthusiastically): "Yes; a pretty little thing—one
of the kind you can take anywhere with you and hold on your knee, and
" A flood of tears. Stupid Man (an hour later): "But, my dear,
it's a machine—not a girl."
Young Man (nervously):
"There's something about—er—your
daughter, I
" Crusty Pa: "Yes, there is. I had noticed it myself.
It comes every night about 8 o'clock, and doesn't get away until about 11.
One of these nights I'm going to kick it into the street and see what it
is made of."
HER GREAT QUESTION.—This desire to Uplift the Sisterhood has
many drawbacks and discouragements. Mrs. Lysander John Appleton
recently conducted such a meeting. She spoke of the blind groping of
her sisters for Higher Ideals and the troubled questions that obtruded
themselves upon their sub-consciousness all through the day and night.
"I would like to hear from you," she said. "Perhaps in your yearning
for a solution of the problems that confront you I may be able to help
you. Mrs. Boogs, tell us what is the Great Question of your life.". Mrs.
Boogs rose pale and trembling. "It is this," she said: "What shall I
get for the next meal?"—Atchison Globe.
A "SORT OF COUSIN."—The lawyer eyed the woman in the witness-
Lox in patient despair. Then he rallied visibly.
"You say, madam," he began, "that the defendant is a sort of relation
of yours. Will you please explain what you mean by that—just how you
are ielated to the defendant?"
"Well, it's like this," replied the witness, beaming upon the court.
"His first wife's cousin and my second cousin's first wife's aunt married
brothers named Jones, and they were cousins to my mother's aunt. Then,
again, his grandfather on his mother's side and my grandfather on my
mother's side were second cousins, and his stepmother married my hus-
band's stepfather, after his father and my mother died, and his brother
Joe and my husband's brother Harry married twin sisters. I ain't ever
liggered out just how close related we are, but 1 ve always looked on him
as a sort of cousin."
"Quite right," assented the lawyer, feebly.
DEEPLY INTERESTED.—The play was one of Shakespeare's trage-
dies. Mrs. Simmons and her little boy, having been unable to secure
seats in the pit, were well located in the front row of the first balcony,
where they could see better and hear almost as well as if they had been
farther forward on the main floor.
Mrs. Simmons was agreeably surprised at the interest that Bobby
appeared to take in the somber drama. He sat leaning forward, with his
elbows on the cushioned railing in front of him, resting his head on his
hands, deeply absorbed. As the curtain went down on the first act he
straightened up.
"Well, dear, how do you like Shakespeare?" asked his mother. "Are
you enjoying the play?"
"Mamma," said Bobby, with the air of one who has made a great
discovery, "there are sixty-nine men here that have got bald spots on top
of their heads! I've counted 'em five times,'"