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Aug:ust27,1898.
Hecord and Guide
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PRICE PER YEAR IN ADVANCE SIX DOLLARS.
FitblisJied ecerij 8a lur day.
TELEPHONE, CORTLANDT 1370.
Communications should be addressed to
C. W. SWEET, 14-16 Vesey Street.
/. 1. LiNDSEY, Business Manager.
•Entered a I the Post-Off ice ulNcm York, N. Y., as seeond-class matter."
Vol. LXII.
AUGUST 27, 1898.
IT was never more conspicuous than to-day how thoroughly
Wall street reflects the temper of the country. This is
seen in the fact the same granger securities that are selling at
high premiums now, only two years ago were going hegging in
the 50's and 60's. These securities were not worth less then than
they are now; it is only the difference in the mood in which they
are regarded that makes them seem so very much more desir¬
able. This variation in the temper of the pubiic has been the
cause of the making of a good many fortunes, but it is not the
people who sold two years ago and those who are buying .now—
generically, it may be remarked, they are the same—who make
the fortunes, at least not in the stock market. Why people rush
in crowds to huy securities at prices beyond their intrinsic worth
has always been an interesting study, but a problem of which
the solution has yet to he found. Of course no one buys think¬
ing he is paying more than his purchase is worth, but so few take
the trouble to examine what they are buying that it amounts to
the same thing. The recent increases in dividends are excellent
signs of good business and ought to create satisfaction, but to
buy securities on those dividends without first ascertaining
whether the increased profits can be maintained is very miser¬
able business. However, the general buying pubiic seems to be
made that way, so it is useless to argue against it. If anyone
wants to know what is the natural course of security values they
can turn to English railroad investments, which were rushed up
on improving business, and which are, at the close of five years
of prosperity, beginning to return declining profits, not because
receipts are less, but because expenses grow out of proportion to
gains in receipts. Our railroads have been operated on a very
economical basis for some years and a more generous treatment
of road and rolling stock must soon be begun, especially if we
are to have the large growth of business that ali expect in the
next few years. Such expenses will absorb a considerable part
of increased earnings. That such thoughts as these are in the
minds of the cautious is shown by the heavy realizing that has
been going on for a week or two. It may be taken for granted
that, with quotations where they are in the active issues, it is the
knowing who are the sellers and the unknowing the buyers.
There are always issues that have held hack from a movement
or to which new developments give improved values, and it is
to these that people who find the desire to buy uncontrollable
should give their attention and leave those that have already
made large advances severely alone.
determining on a course of action. Without powerful restraining'^
cause, recent events in China could only result in war. To turn
from politics to business. Final results of the English railroad
business of the first half of the year were not as good as were
expected; notwithstanding a considerable increase in gross earn¬
ings, the average dividend of all the great companies was, every¬
thing allowed, one-half per cent less than in the first half of 1897.
Banking, however, proved very profitable, the joint stock banks
of London not only paid dividends as large as those paid in the
corresponding period of last year, but several of them made sub¬
stantial increases to the returns to their stockholders. A remark¬
able report has just been issued on state technical instruction in
agriculture in France, which has been carried on for a quarter
of a century, at a cost of 4,000,000 fr. a year, and is declared to
have been barren of results. The establishment was so elaborate
and the public response so small that it contained a professor to
about every four pupils, and the graduates, instead of applying
the knowledge gained in the schools to the problem of getting a
living at practical farming, all demanded government employ¬
ment. Under the double incentive of a good harvest and pros¬
pects for smoothing away the worst of the friction in home poli¬
tics, prices have improved on the Vienna bourse, and a much
more cheerful view of the European commercial situation is pos¬
sible. From other quarters the reports are of small interest and
wanting in hearing on the outlook.
1,589
jRITISH journalism is despairingly trying to ascertain what
the policy oE its government toward China really is—
whether it is the principle of the open commercial door, or, as
it has recently intimated, that of the spheres of influence. The
government, on the other hand, appears to be afraid to openly
announce its acceptance of a policy of any kind, because if it did
Russia would set herself to work to trail that policy in the dirt,
as she did the "open door" and as she is now doing the "spheres
of influence," as witness the closing of Port Arthur and more
significant the shutting up of Talienwau, and later the opposition
—and successful opposition, too—presented to the granting of
new privileges to British enterprise, or the ("nal confirmation to
privileges previously promised in the very sections that Great
Britain has claimed as peculiarly her own f:elds of operations.
If anything so subtle and deep as Russian p- icy uan be defined,
it is that Russia arrogates to herself the du.y l: dictating what
the course of China shall be, and as a necessary preliminary pro¬
ceeds to embarrass her greatest rival and destroy her infiuence
as much as possible iu the eyes of the Chinese foreign office.
That British diplomacy consents to be baulked and annoyed in
this way is only explicable on the theory that a new situation is
expected to arise from the appearance of the United States in the
Far East, and that it ia better to await its development before
THB appointment of a commission of experts to prepare and
report to the Municipal Assembly a Building Code as re¬
quired by the charter, is sidetracked for the present by reason of
the adjournment of the Board of Aldermen to the first Tuesday
in October. The resolution providing for the appointment of a
Commission, as passed by the Council in the latter part of June,
eame up for action by the Board of Aldermen on Tuesday last,
but was recommitted by the Committee on Law, as several
amendments were offered, looking to an increase of members of
the commission. The Council resolution provides for eight per¬
sons on the commission, namely: one ironworker, one mason,
one carpenter, one plumber, one architect, one civil engineer, one
underwriter and one representative of the Corporation Counsel.
The amendments ofEered in the Board of Aldermen are to add the
Commissioners of Buildings in the Boroughs of Manhattan and
Brooklyn, and the President of the Board of Aldermen, If these
three officials are added the total numher of persons on the com¬
mission will be brought up to eleven. In one respect the Coun¬
cil resolution will need to he changed. The time set therein for
the commission to make its report is the first day of November,
Obviously, the complete work cannot be presented at that time,
and the work is of such a character that it cannot be presented
in parts; it must come as a whole. However, a request from the
commission for an extension of time would in all probability be
granted. The commission must not only have sufficient time to
do its work well, but public hearings should be given from time
to time during the preparation of the code, and the various
branches of the building interests be given every opportunity to
present their views. We have reason to believe that the eommla-
sion will not be appointed anyway, until after this fall's election,
and that the new Building Code may he looked for In the early
spring months of the coming year.
IN the contemplated revision of the Building Law radical meas¬
ures ought to be taken to suppress unlicensed plumbing.
The existing law provides that no person shall he allowed to
carry on the trade of master plumber unless he has a certificate
of competency from the Examining Board of Plumbers, anl a
certificate of registration from the Building Department., Any
one who engages in the trade of master plumber, or who exposes
the sign of plumber or plumbing, without such certificate of
competency and registration, is liable to a fine not exceeding
$250, or to imprisonment for a term not exceeding three months,
or both. So far the law is sufficiently stringent. But the ma¬
chinery provided for the discovery and punishment of unlicensed
work is inadequate. The enforcement of the provisions relating
to plumbing is intrusted to the Building Department, which is
charged with the duty of inspecting the construction and altera¬
tion of all plumbing work, except certain minor repairs. These
repairs, for which plans do not have to be filed with the depart¬
ment, form a pretty comprehensive class, measured by quantity.
It is chiefiy owing to the exemption of this large class of repair
work from inspection that the unlicensed plumber is able to ex¬
ist without coming into contact with the Building Department,
a contact which would inevitably mean discovery and prosecu¬
tion. The extent to which unlicensed plumbing is practised 1b
really surprising, considering the penalties Involved. Trow'a
Business Directory contains a list of master plumbers, covering
nine pages. An examination of the flrst three discloses the