New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-25
The Financial World.


ual curtaiment of security market business IN
til at the end Of the five days during which the
Exchange was open the volume of TRANSACTIONS
smaller than at any time since last sumner.
without extensive price changes. trading for the
most part being confined TO professional opera
TONS
1t was stated in this column week ago. IN
discussion Of the increase in Louisville's div-
dend. that other companies might be expected to
follow the example. and it vas said:
Some are Pf2aa5Iy ready 70 taTe SPEEDY acton IN ta
more and Ohio Illinois central Read NJ ana Norfolk al
s far ~ OK saese SonPsaIs e@e es'ao.t5as sur
Action has this week been taken by Readin,
In the declaration of semi-annual dividend OF
155 per cent upon it's common stock. placing &,
upon a per cent basls-the most important
the most signifyiug event OF the week Owners
of Reading common have received no dividends
for twentyeight years and have twice sub
mitted to reOrganization-in 1887 and 1896
paying in 1896 an assessment OF $50 per share
Under the administrative control o. J. PierpoHt
Morgan and his associates the company has
been built up from bankruptcy to opuleuce and
they have turned 10 the control Of its stock
holders a railroad system with gross earnings
exceeding $G2.OO0OO0 as against S45O040OD
seven years ago. and with net earnings exceed
years ago. Dividends are now earned and paid
on all classes of it's stocks and there is no reason
to doubt that its prosperity viii continue TO ex-
pand. The history Of this road is illustrative
and typicaI-it has passed through all the
vclssitudes incidental 10 the development u
American railroads. and it energies strong. pros
porous, triumphant.
The Reading company owns outright thu
Philadelphia and Reading Coal and Iron Com
pany and a controlling interest in the stock q
Jersey Central a controlling interest in Read
ing has been acquired by Baltimore and Ohio
and Lake Shore. which roads of course benefit
largely by the resumption Of Reading DIVIDENDS.
This is helpful factor in an early increase OF
Baltimore and Ohio's dividend.
Influence upon public sentiment az home and
abroad of this Reading dividend must be great.
Here Is concrete evidence that the claim is true
that American railroads are conducted honestly
and ably-taking full advantage Of the ire
mendOus opportunities presenting themselves
and dealing with stockholders on an equitable
basis II is by no means improbable that the
common stocks of Erie, Southern Railway ana
Southern Pacific will before long follow tho
Reading precedent With earnings maintained
at present volume-and there is every reason 70
believe that 1905 earnings VIII be Iarger-the
necessity for boarding SURPRISES passes away
and stockholders can come into their own
Despite this significant happening a powerful
Wall Street element still continues TO be nervous
prefers to discuss far-off possIbilities-actIaI
improba bilities-and with cheerful alacr!ty they
put out short lines on any pretext- Short com
nitments al this Christmastide are exceptionally
extended, the remarkable feature being the ob-
stinacy with which the bear position IS main
tanned in the face Of the obvious fact that there
is no longer liquidation OF actual holdings
vestors maintaining complete confidence in the
situation.
a favorite bear argument just now rests on
the assumption that the United States govern
ment has entered upon a campaign hostile to
corporations. This is just plain foo!ishness- So
far as the President is concerned he is on record
standing for a square deal TO all: so far
Congress is concerned, it remains TO a greater
extent than ever under the conservative guild
ance OF the Republican party. which, time and
time again. has proved its faithfUiness to bUst-
ness interests. That new conditions have arisen
in the wonderful development Of modern com
merce is true-conditions which no doubt call
for adjustment OF law facts. just when rail-
roads came into existence the rules of the pub
lie highway had TO be amended to meet new
requirements But it is not thinkable that a
government controlled by the Republican party
is going to play the role of destroyer Correction
the wisdom and prudence of Congress and our
Observation-Disclosures is there the least basis for
bear argument in the contemplation OF such
correction; law must and will recognize couii-
tions-that's all
The money market maintains unruf1ed quiet
Some small exports of gold occur without a.
tracing much attention and without producing
effect upon loan rates-we enter the last week
of the year with call money below 3 per cert
and time money at IS. TO for from sixty days
to six months. With the great size OF the loan
account and the tremendous absorption Of new
bond issues, this ease Of money is truly re-
m2TkablG, and can indicate but one thing
superabundance of wealth OF UnsUspeCtei pro
portions. Business is normally active and Us
ing its full share OF funds all over the COU--
try. There has been large increase in volume
of securities; there has been exported since the
end OF last October over S}2.OUOtGO of gold,
and yet money remains abundant and cheap
this. too. upon the very eve OF January dis
burserlen.s- American prosperity is 10 de-
lusion-the people are heapInS UP Vea!th-ha'e
heaped il VI.
OF Individual securities there IS not much o.
interest TO record in the weeks movement.
Significant buying appears OF hIsh-prlced
! stocks, due to inVest.-Cu demand as bonds oe-
come sCarCcr and SCarcsr. United states steer
shares are heavily traded IN. nlaIntaiHl7- NOS
of their recent advance. II is row assured tna-
United States steel Corporation earnings Tor
the current quarter viii be- q pleasing surprise
Very general is the feeling tfOr Just Su n rea-
sons these that show i'm expanding StT't
Corporation prosperity that We viii have oeL-
/ ter and improving market as soon as JAe non
days over. y canvass or more Jatn d s-..'
OF the most eminent banking authorize A'
Wall Street. and many important aroHeraEr
houses. dfsCloSes the popular eNp91-~-.9n o.
such a market IN volume and in quality as VIII
be making inspiritinE records before the new