New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-03-06
Financial.
The Financial World.


other Independent financial writer. there IA iargs
loss both to journalism and 20 the fnanciay
world, and the continuance Of the work OF such
a predecessor can have no higher aim than the
enGeavOr to approach standards maintained bv
his Judgment and conservatism
Keen and comprehensive to notable deers. was
this statement in his last published review:
1T may be assumed as being as near a GER
tainty financial forecasts can be that tn
year 1904 is going to be one OF ea5y money!
Each successive day adds emphasis 10 g.,
fOrecast-tOuching what is fundamental IN the
security market situation. Long lists OF inter
ferences have been paraded. but all the bandi
caps disappear every time test comes: and
signifcantly-these show this easy money Ger
tainty." And only tyrOs or reckless partisans
can affect to ignore the elemental influence dis
closed. IL smacks too much Of the financial
kindergarten to elaborate any argument 10
the controlling erect or money market cOndi-
lions upon current security values. OF itself
alone incapable Of creating active market
or maintaining a strong one, easy money is fore
most among foundation essentials, and the am
pie attracter Of other factors Gnciuding public
speculative SPIRIT which can make the market
broad and buOyant. Thus present ruling
charges Of from one and one-half 70 two per
cent for the use Of funds call and four and Z,
half per cent on contracts carrying accOmmoda-
ton through the national political campaign to
the end of the year are Of basic Importance
Practically every banker in Wall Street agrees
tina. these rates natural and going to be
lasting; and all the gruesOme prophecies not
long ago crowded upon are disposed OF by
banking confidence. Yet when yesterdays
showing some increase in the loan account and
some shrinkage in surplus reserves. the eXceHenr
small fry who proclaim themselves the profes-
siOnal talent OF the stock Exchange fell upon
the market and belabOred it. A few concessions
were forced. but. aside from incidental ex-
tension Of the short interest, there was nothing
done.
The truth is that in so far as money Is con-
cerned security market conditions are altogether
neutrality-suspicious. hysterical endeavOr upon
the part of Decentralization apostles. Suggestive
Of the disposition and methods employed by this
contingent is elaborate bulletin industriOusly.
circulated announcing that inside information"
rom official banking supervisors disCl0ses that
S3j0OO0.OO0 Is being loaned to seventeen IN
dividual New-YOrk capitalists: upwards Of 500
OOOOeO per man. This is projected as a drefuL
danger signal. All kinds Of disaster and dis
tress are incidentally reckOned. Probably this
schedule IS a fake Publishing the renlOtest
pOssibillty-suppOse IL an actual record aud lit
orally true, what security market significance
Is involved? Is there a single thing that is new.
In this sttuat1OnE Where IS the surprise that
the metropolis OF America has milliOnaires who
are alert and active in business, swinging in
dividual and corporation enterprises on gi-
gantic scale? And what signifies the paraded
fact that they pledged their own individual
faith in cooperation with the corporations they
esteem than 10 betOken their cOBfdeacs and as
sert their financial ability? Ret sure Of one
thing Few York banking institutions are CIV
ing credit on no guesswOrk plan. Philanthropy
IS no speciality OF theirs Before they lend they
know.
A great majority OF the railroads for the last
three months and at the present time. report
decreases in both gross and net earnings. There
Is no doubt that this exerts depressing infu-s
ence on speculation, but thoughtful examina-
ton OF the causes producing decreases reveals
no cause FOR alarm Gross earnings have de-
cltned not from any lack OF tonnage offered
not from any general contraction OF business.
but solely from the severity OF the weather
Not only have heavy SHOWS literally buried
thousands OF miles Of tracks but zero tent
Ierature has played its part IN reducing ef-.
fcency OF eugine-hauling power. Weekly state
ments made to the public by traffic u1anaSers-t
a most commendable practice-are unanimous,
49, 49, FRff -rrrrH
that accumulated tonnage viii move In the
future and bring about more cheerful aver
age. Decreases IN net reject tne neavy enarge
necessary for cleaning the tracks and meeting
other extraordinary disbursements imposed By
winter conditions. These OF course cannot De
recovered by the roads. but they are not a con-
tinuing charge and the roads can bear them
A more gratifying feature to review - the
series OF magnificent reports lately submitted
for the year 1905. During the past week
number Of these mace their appearance-not-
ably Pennsylvania and Delaware and HUDSON
Pennsylvania's record Is Indeed refnarAanes
gross earnings for year approaching quarter
OF billion are - stupendOus that y seems as
IL the record were not or corporation Ous %
a government: indeed there are many nations
whose budgets fan far below these figures Dis
tributiOn OF nearly Sl5oOOOOo 70 over 1oflI
thousand stockholders suggests the payment or
a royal civil list. Enormous disbursements tor
improvement Of existing lines were incurreE.
also for great new undertakings. notably Tor the
New York terminals and tunnels. The increase
OF capitalization effected is shown to be amply
the road easily providing out or earnings loE
the additional dividend payments rsQeIreu-
Criticism levelled at Penusy MAINLAND Inel1
has been plenty Of it-fails utterly 70 take mo
account the changes brought about IN the trans
pOrtatiOn business as In all other businesses, oy
the wonderful developments or the last I'VE
years during which period the United states
has undergone transformation, emerging TON
isolation 10 world leadership. our country mas
taken the lead I'm international trade us con-
suuptiou (and world COnsumptiOu) has so over
taken production that although American crops
keen near a maximum. prices Tor tneIn hdNe
practically doubled. creating a national Wealln
never before equalled-never appro.1clleu 5 -. n. 81
history OF the world. Thus the edstDouhd lraiiic
OF railroads particularly the export portion, -
the visible sign OF agricultural prosperity WHICH
in its turn creates westbound traEhc- NO ran
road system more typically reflects these cOndi-
lions than Pennsylvania, and 1t IS gratlIyins
that this vast-this imperial-System Is tound
to be managed by men broad enough 20 grasp
the meaning OF events and rise to their flN level
Another great System-ROck lsland-ulaiAeS
public notable achievements To take a single
detail OF its gigantic construction Work. y
has erected at Moline. H., one OF the most
modern and efficient plants ever built, lncluu-
ing a railway stOTehOuse with a hOOr area Q.
al 200 square feet. larger than any orner nd.
dozen similar stOrehOuses IN the country. Wan
Street Spectators do not study nor particularly
care for such items. but investors must re1oice
to sec the revolution in railroad management
which devOtes it's best energies not to the spec.
ulative end but to the actual upbuhding- 2.
property. And speculation in the long run VIII
be compelled TO take cognizance or facts.
To comment on the great earnings OF me
Southern roads wOuldsbe to tell an oft told tale:
South and Southwest treading the road or
development with giant strides. Thus il may De
seen from this brief survey OF different sections
and these few Illustrations quoted that the ran.
road system OF the country is well abreast on
the times. and that its prosperity rests on
safe sound basis. Temporary expenses brouSh--
about by unusual winter can be- NieWsu
eauaby by owners of stock. howsOsver nc
81 uNrrnr