New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-09-11
The Financial World

ket- The weeks trading has been m iarrs
volume. and substantial advances in pre-,
have been the rule. Commission house. re-
port increased public internationally Il IA
beginning to dawn upon capitalists that tn.
New-fork security market is the most attrse-
tive investment centre avaiable-that there
are still many bargain-counter propositions To
De picked up and that keeping money 'oue On
loan at per cent is not the height OF wisdom
when four TO six times that interest can be
safely obtained from good security Investments.
TO me postulate thus presented there seems II
be no valid contradiction s
Conspicuous In market leadership are tbs
shares OF the anthracite coal carrfers-not oufy-
IN those properties in which the mining ara
carrying of anthracite is the main business ntr
also in those or which IT is onlv an trrnortsn+.
constituent part-for example Pennsylvania
Erie and Reading All reports from anrhraefts
roads are Of cheerful tenor. Take for ex-
ample, the current statements OF the Central
railroad OF New-Jersey, which show SURPRISES
approximating $4,000 GER day as the result or
operations approaching aq25 per cent dividend
basis) with the favorable feature OF gross rs-
ceipts increasing and operating expenses de-
creasing. This is a representative anthracft.
property. which. after a checkered career. han
emerged into the sunlight OF prosperity TO be
ite IL has S27.4oOO00 outstanding capital
stock and Of the amount issued more than one
half-to be exact. $14.5O0OO0-was acquired Sy
the Reading Company in 1901 and Is now in
the Reading treasury. This leaves less than
S13OooO00 af1oat. OF which most is held by
strong interests. =
Increase OF dividend began in 1899 and has
gradually worked up TO the present rate osos
per cent. further Increase 70 10 per cent is
about TO take place.
Conservative calculators regard Central OF
NeW-Jersey stock as being intrinslcally worth
over $3.50 per share
The anthracite coal fields tributary To Jsrssv
Central are practically inexhaustfble and or the
highest grade Of coal. Modern methods enable
this coal to be mined with an economy reducing
waste TO a minimum, cOincident with n CON
stantly increasing consumptive demand This
results in the case Of the Central of New Jersey
in giving IL an exceptionally favorable posiefon
its traffic mainly based upon a commodity for
which there is steady demand and the prodlic-
tioh of which is not at the mercy OF weather con-
ditions as the great crops titled from the
soil From the market point OF view there would
seem TO be To shares more attractive than those
OF Central OF New Jersey-none that more surety
combine glt-edged safety with promise OF in
creasing value-1O per cent dividends at hand
OF course. there are reasons In variety 20 In
duce hesitation upon the part of traders and in
vestors who are never courageous They are
still anxious TO wait for further market tests to
be wholly sure that difficulties remain To
such people Importance vests in passing reports
70 what may may not be huctusting West
ern weather conditions-their biggest bugabOO
being apprehension that killing frost may sud
denly devastate corn crop territory. They have
haa hon rn4
first OF July. Actually they haven't any basis
upon which to found any dread; they just have
to work themselves into nervousness. Suca
watchers and critics OF commercial and asri-
cultural conditions are bound forever to be in
exeitable state; and the chorus they emit ia
this year just as il is every year, more or less
influential In the creation OF security markeH
spirit of caution a. not OF apprehension
To no little extent resultant from this clemens
in the market is due the action or some groups
OF important operators who have within the las-
day or two sold out lines Of long stock. They
have wanted to be safe-they have played for
position The fact tina: they have sold stocks
does not at all indicate that they have become
bears or that they expect the market to go seri-
ously backward: they have merely taken protts,
heading or the possibilities OF even such rela-
lively slight recessiOns as might be forced By a
weather scare. What these operators realize Is
that much Wall Street talent has been enlisted
for this sort Of scare campaign And We are not
unlikely 10 have tales before the middle OF The
week proclaimIng varieties OF crop damage seq
sationalism. II so. these very bulletins viii os
the signal not for stock market sacrihce-but for
re-entry into the market as buyers by tnoss
who in anticipation have been recently chief
sellers Thus. while crop scares may come ana
come soon. their market effect is likely TO atner
materially from what their producers aim a.
The trouble is too much heraided
-
wholesomely enough. the market ignores ali
the trumped up bear factors that are thrust
--,-. a. TIL l.. . rnar-nt rrharein anDreCl2-