New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-11-27
The Financial World.

u
] OF S2J.OOO,OOo. gave the bears opportunity for
demonstration. which they fastened TO SEIZE
Large and aggressive sales followed for TIA
short account. causing temporary recessions
averaging about two points for active iss,la,
when buying orders of valid character were en-
cOuntered absolutely defeating all effort 70
arouse distrust.
At no time was there any uneasiness IN bank
ing circles. which recognized that the advanca
in call money automatic response to the
advance in sterling exchange making gold ex-
ports possible-money rates invariably seeking
equality in all markets. That the rise in thu cal
loan rate meant nothing more than this Is evil
denced by the quiet OF the time money market
( In which loans were and are NEGOTIABLE for from
sixty days to six months at 81 to { per cent
And predictions that the Bank OF England would
raise its discount rate Thursday. spelling our
Thanksgiving, we're unfUldIed.
When comprehension Of the money market Re.
came clear. market movement resumed its W.
ward course under the leadership of the United
States Steel stocks Many times in this review
has it been pointed out that the Steel shares
possessed merit not recognized In ruling quota
lions. Demonstrated capacity TO earn the
per cent dividend on the preferred IN times OF
/ depressed business warrants that stock taking
permanent recognized position among standard
dividend payers; and the buying OF the common
stock now going indicates that 1 am not
alone IN the opinion that it. too. has a dividend
future ahead Of IT, He must be wlIfulIy Blind
who will not that the Steel trade is heaIthty
| expanding Reports from the most conser.a-
tive sources are now all one way-orders Tor
rails, structural shapes and lesser products are
pouring in to every mill throughout the country
| 1t is evident that capacity Of production viii
be severely taxed in 1905. Railroads are al
ready congested, reports from Pittsburg yes
terday stating that six miles OF freight cars
loaded with products Of the steel mills al the
Homestead plant await transportation. and
/ that hundreds of other cars are on tracks a.
other mills awaiting shipment. Incidentally
the pennsylvania Railroad orders 5000 new
freight cars, Independent OF recent orders placed
for 700 freight cars TO replace WORKOUT or
damaged cars All this is strictly business tes-
timOny
The security market cannot but register these
condftions-there is limit 10 obstnacv when
theories are overwhelmed by facts II is now
seen that the organizers Of the United States
Steel Corporation builded even better than they
hAeW-that their consultations, economies and
abilities were of sufficient scope not only 10 reap
amazing profits N good times but 70 confront
duh times with virile accomplishment. Those
investors who ConfdCd in the mana cement OF
this corporation, and who kept their holdings
under the savage assault Of every device known
10 speculative ingenuity, now find their conf
Qence warranted and the market for their prop
critics again normal The abuse heaped upon J.
RlerpCut Morgan
mon Steel was below 10 and preferred below -
sounds sadly silly now Plain IL is that those
low quotations were due TO no chicane upon the
part or the Steel managers, but were brought
about by campaign Of misrepresentation OF
sorriest character. The absurdity of the low
prices made is now mantfest-the Morgan posi-
ton vindiCa ted-as usual.
Wall Street. always inclined TO seek fancifuI
reasons rather than those plain and evident.
seeks to account for the rise in Steel securities
by runors of approaching financial operations
involving conversion OF the preferred stock into
bonds Whether such operations are under con-
s1deratton has no bearing upon the value OF the
Steel securities-they rise logically and in
evitably because they are worth more than they
have been, or are selling fOr-as they were thu
target of attack. they bear the standard Of ad-
vance.
The approaching session Of a Republican Con-
gress gives important interest 10 the meetings
Of the Merchant Marine Commission being held
in Washington. Secretary of the Navy Morton
spoke at fridays session IN warm advocacy or
ship subsidies. He pointed out that the mail con-
tracts. subsidies and premiums paid by the
English, German and other governments would
have 10 be met by the American Government
If our merchant marine is TO have an even
chance in competition for the sea CARRYING bust
ness Of the world. He justly says that there
is nothing academic about the QUestiOn-forrign
cornpetiton must be met il a big American ship
ping interest is 70 be built up. While Mr. Nor
ton explicitly states that he speaks as an in
dividual only it is fair 10 assume that he would
not so speak unless he felt sure OF being in SYM
pathy with the Administration-and il is fair 70
assume that Congress viii lend a friendly ear
n
enlargement our steamship lines. notably on ne
Pacific (suCh. for example as Pacific Mail
and the Hill heep, could oUtrival foreign car
Tiers. Early legislation on this subject IS by no
means improbable.
Railway earnings continue 10 mount There
is recession nOWhere-eXpauSiOn everywhere.
This is not merely as TO gross, bUt shows quite
as distinctly in net records The ST. Louis and
San Francisco system. for example Is showing
gains now the rate of 100000 net per week.
And this is but a fair index of what goes ot.
throughout all the SOuthWeSt-as indicated i'm
a confidential review Of one property I'm that
territory issued by important banking interests
10 their clients at the close OF the week the -
Louis Southwestern system being their text
Net earnings, increasing at a rate approXi-
mating $1,000 a day. forecasts 4 net total for
the year Of IS 100000 figures which make eX-
tTaordinary new records for this member or
the Gould group. With change I'm mileage
amounting only TO 50 miles I'm ten years. s.
Louis Southwestern increased its gross earn
ings from 100000 in 1896 70 SI6Hftunu last
year. expansion from S4.Olo 20 S3NnS per
mile while net earnings have co'ncldeutly risen
represents a stride from $b3l - Sl.-'9 per
mile-theSe phenomenal advances being directly
tvaCeable 10 the tremendous Increase II the
movement of Southwestern cotton ana cottoh
products. 1t Is pointed out by the reviewing
bankers that cOinCideutN Witl the vast strides or
traffic there has been material Improvement IN
the physical condition of the property. not only
augment1ng property values, but operating
economies aVailable-in passenger business. TOT
example. an increase OF 90 per cent I'm travel
necesSitatlnS an increase OF only 10 per cent
in train service. Achievements like this make
II easy for bankers 10 present ATTRACTIVE eN-
hibits here and abroad. the particular circular
letter here referred to being chiefly intended or
the scrutiny Of investment interests On Europe
Foreign attention 10 our general security list
already shows great augmentation. and Spe-
cihc Illustration like this Of -. Louis south
western viii do good.
With standard properties like Union Pacific.
"a F14iA and .ert.