New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-09-13
WILL REMEDY ITSELF.
Viie1cs of Sir Thomas q. Shaughnessy
on Disqualification.
sHRINKAGE IN VALUE THE CURE.


"The Newark Sunday News" Of this morning
contains the following special from its Wash
ington correspondent. J. Martin Miller. sent
from Montreal Can:
Sir Thomas c. shaughnessy. president OF The
caadisn PagifS Ralway exg;ssSfd TO-DAY ntE ressr
ing the unprecedented decline in the value Of rail-
way and industrial stocks in tho United states
pSsitton Min the Missouri Paciac Railway. lie IS
well acquainted with the booming lnnauns anu
recklessly some twenty years ago, lie rs 49,
Of the United States but has nvsd ~ ST. Jyii
lam c. Van Horne president Of the greet lana pa
dian transcontnental system In 1873 salo ST
Il have not speculated in railway securities for
ordinate position may have traded little in STOCK
purchased them outright: me pEE.gIsrS would
not think OF operating IN the stock of MS roaG-
unfair to the outside holders of stock
when a director deems it necessary to convert
a part Of bis holdings Into cash ne always con
suits with the other directors about it. or notifies
them In advance 81 MS lnteb h son Our road
has tens of thousands OF stockholders. an ,, non
" make OF the information they possess Tor
Some instances Of the great slump IN American
securities were then cited. Sir Thomas stated that
while these figures reflected an apparent sac t SS
affairs. and seemed appalling. they were APT 10 DC
misleading. 60, -,,,.,.rr, p,.,ec ard
United States Steel Corporation stocks were con-
sidered by Sir Thomas with the correspondsnt ana
follows: The NewYork Central RsiiSay has ISSUES t1
stock amounting t to Us SsS n,a Mh value Of s
O52.s -. -...,. &. s,--, % 81.
most 81 20. which means that IL has shrunk that
now it is worth $527es 20 less in cash than II was
Of the value OF this high class railway stock has
when t5e net Earnings Of the New-York Central
the greatest in its history. They amounted 20
at this rate nearly two years to make up this ap-
parent loss in the shrinkage OF It's capital STOCK
permanent Investment are drawing its dividends on
It's par value They DO not Ieei the s'uHip' 1t
Southern Pacific Railway stock has been worth
it has been down to 4O-more than half its value
gone. The Southern Pssife has issued capit3 ~
worth nearly slOoOOoOO less than it was some
And this in the face Of the fact that the net
earnings OF the road were never larger t
year SIS O7 net. that it will require four years
at that rate 10 make good the apparent crop OF
one year in the cash value OF the ROAD eapitai
%The United states Steel Corporation issued
amounting 10 81 200. The common stock az
first sold at 50 cents. but has very recently sold
highest to the present or lowest market value has
This means that the SOS 90 Of common stock.
which year ago was worth In cash s-odz III t,a, Is
GO s1525i5s0 less than it was about one year
'Does this mean Sir Thomas. that the so-called
Morgan school Of finance is on the declinez was
Il would not call it that" he said. The Amer
lean people. 1t seems 20 me. were neealessly
of these great combinations. II there is anything
in the oyercapitalizaton line N the nited states
'.-Thfs brfnzfng together and organizing under one
o otToeG has esrtainy had it's advantages
will say that man In Boston owns a cQoperase
cipais in the trust goes to this man and says: We
will pay you " $50 IN e f sTrad StccE d9 he new
company This man has been conducting the
BUSINESS hess a WE MAJ naehnery his buildings are
old and out Of repair He may nave sons 9[ IaS+
Wie4 ~ In 90 Yror1petfion The people who are
eI he 70 Foraiied trust are forming the combine
primarily for the purpose OF maklns fortune out
TeHt will result I'm operating these combined enter
prises On the other hand WHERE t1ey s5 are ~s
penses and cost OF production. This has been the
gether railway and Industrial concerns under one
nrices on their hands have been induced 70 sell 70
the so-called trust and take the greater bII %
their business interests and it has been her3lded
forth among tner ITenos tlt ma. he n5oted Ar
$40 600 COO His family and the neighoors All con,
g-atuiate him on his good luck He has retired
from BUSINESS and after his return from Europe on
years he fnds that his sl2 has saIEnE
money he has lost faith IN stocks and IS NO ma <
is he advising his friends to do So but rather al
vising them TO keep out ms IS ~ Sort :" A., MS
IS operating IN the JHiIcu OtdtVS
cure what the people have all along been calling
the creates. evil confronting the country As
ratd n while ago. il a cure Is needed one VIII %
found OF itself. Probably il has been FOUND al
ready Co.., ~ -
vica-president and general manager OF the Strand
TrrIDk Railway system Mr. HAYS - an amer
foam and was for many years at Milwaukee. lie
md close relations with Alexander Mitchell the
builder of the Chicago. Milwaukee and ST PAU
Ra He said:
81 suppose the stock Of the Grand Trunk system
- held nv forty thousand shareholders Great
blocks of the stock not held By a few % T5onS
Or1 directors and officials do not speculate IN rail-
nav stock 1t would be impossible for any nnar-
ciai concern 20 get enough OF the stock or the
Grand Trunk together 10 corner and manipulate u.
THE peOple have nut their money into the STOCK as
an Investment They are drawing their dlVidends
and are satisfied. -,
This Is not the rule in the United states. Inc
stock in the roads there rule is held oy a COM
narativeIv few individuals. They are speculating
In ard manipulating these railway securities IN
the u ed States.
Mr. HAYS is a cousin OF Postmaster Hays OF