New-York tribune., 1903-01-04
finanfiaI.
The Financial World.

| respectable proportions would appear be the
present programme
During the week. the buying Of the Steel
stocks was conspf uous feature in the opera
ticns, and the last day OF the year was marked
by the announcement of the scheme to create
between the gigantic corporation and it's army
Of employees community Of ownership which,
| If successful, must have far reaching conse-
quences. Summarized IL is an invitation TO the
saving class among the workmen TO invest their
savings in the preferred stock Of the corpora
ton. at a purchase price Of S21s; payment TO
be made in instruments Up to the time when
the stock is fully paid for. and absolute owner
ship acquired. the money paid in is IN the same
condition as money deposited in a savings bank.
wfthdrawable at anv time; but the interest paid
| on it. is nearly double what a savings bank
would pay. There other inducements In
the way OF extra dividends.
Any one who has had experience with any
considerable body of workmen knows that when
a proposition Of this nature is made them. their
almost instructive attitude is one OF distrust and
suspicion They regard the source. and suspect
some device to strengthen the employers hold
them. 1t is, therefore with surprise one
learns by the reports coming in from the var1-
Gus mills of the company that the scheme has
been received with considerable favor. At one
mill alone 240 men have signihed their tnten-
ton to subscribe. The indications generally are
so favora BILE that the scheme may be said to be
already an almost assured success.
If IT should prove SO. the good effects win be
extended beyond the confines Of the U s. Steel
Corporation This corporation is by far the
largest manufacturing concern in the world,
and is known all over the world; and its ex-
ample cannot but have a strong influence on
lesser corporations. The scheme Is an effort 10
unite the interests of labor and capital; and to
the extent that it is successful, will minimize
the danger Of labor troubles. The elaboration or
the details of the plan marks it, Of course. as
the work Of Mr.. Perkins; who may be called
the Chief Of staff to Mr.. Morgan 1t IS the
business of the Chief of Staff to work out In
detail the conceptions of his chief
In last weeks article special reference was
made to the coal trade and the coal stocks
These have been we'll to the front. reckoning
Erie among them, since this company has an
important coal traffic Its last statement shows
that it is making up rapidly the loss it sus-
tanned through the coal strike-which- consider
ing all things was not so much as might have
been expected-and the outlook for earnings this
second half of the fiscal year is very promising
There is also some rurnor of competitive buying
of the stock; but wtether founded on fact or
not. we have information. 1t is certain,
however. that the buying Of Erie lately has been
large and persistent. The Reading issues also.
are in good demand
based
earnings Of the property, which seem to assure
increase of dividend. In the last fiscal year
the earnings were equal to nearly S per cent:
but if the net increases so far reported this
fiscal year continue the earnings will be in ex-
cess of TO per cent. As pointed out former
occasion, Louisville is a minority stock:
but 1T is understood that the interests in con-
troll disposed TO treat the stockholders fairly
Union Pacific moved up slowly with the rest Of
some buoyancy were it not weighted in some
degree by the still uncertain labor situation In
the company, for the strike leaders have yet
to bring their men into line TO accept the COM
panys terms. II they can do this, Union Pa
cifc may be expected to keep well to the front
Of the market.
There is some uncertainty as to who has been
doing the buying which has advanced the NJ
K T. issues so markedly, the preferred stock
the other day getting up to 81; an advance Of
ten points from recent figures. The Standard
Oil people credited with a large ownership
in the property. II not of control; and rurnor has
it that the Rockefellers have been adding To
their holdings, while something of a favorable
nature to the property is about to be brought
out. On the other hand it may be merely that
the Gould party is buying the stock in connec-
ton with their general operations in the South
westerns, as Missouri Pacific and Texas Pacific
The coming week. the stockholders of Man
haitian will formally vote on the lease to the
Interborough Company. 1t will be formal only
since the majority owners were those who
planned the scheme At the same meeting the
terms of subscription to the new issue Of Man
haitian stock win be announced. 1t Is note
worthy. bearing the general subject Of the
congested state of railroad transportation, that
the purely passenger carrying companies, as the
Manhattan, Metropolitan, and Brooklyn COM
panies. are in the same choked condition as the
great railroad lines with their freight: and
also. that this congested condition does not re-
suit in increase in net earnings at all COM
mensurate with the increase in gross.
Something OF this is shown by the PennsyI-
vania statements 1t is well known how this
great system has been gorged with freight, and
at what great cost in money and labor the con-
sested points have been cleared The Novem-
Der statement of the company shows against
an increase in gross the eastern lines Of a
little less than 100000. increase in expenses
of over s.. 100000 Part OF this is due TO an ad-
vance in wages. which will be offset by an ad-
vance in freight rates. which went into effect
on the 1st of December; part is due TO the con-
ditions described From what causes such con-
ditions have arisen, are not wholly apparent:
yet we see the fact Of a sudden swelling of pas
senger and freight traffic unprecedented in
volume as to overwhelm the transportation COM
panies. despite the enormous additions made OF
late to railroad facilities the cost OF which has
moneys.
In this. also why money has be-
come SO scarce at the centres where reserves
are usually accumulated. Every dollar of work
ing capital is in active use; there are next to
| FOR rba emf fn3r-