New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-03-26
The Financial World.


sad attack of hysteria- Throughout the earlier
part of the week quotations were knocked down.
the market generally disquieted. avalanches of
sensational rumors contributing some excite
ment. At the weeks end. the rumors disproved
and their stock-jobbery origin exposed. excite
ment disappears. quotations right themselves,
disquietude vanishes-we have normal mar
ket again-all the worry and furry OF hysterla
going for naught. The whole performance was
abnormal. We have simply had scare wholly
fabricated. Warrant for disturbance existed no
where. On the contrary. not one day has passed
but to add materially to the mounting records
OF national prosperity.
Yet-as has many times been insisted here
occasional reactions IN the market are for the
markets good. They harden prices by the tests
they impose. their influence is for conservatism,
they induce prudence-in varied ways they are
helpful No lasting, healthful market has ever
been built without them Their absence would
be unnatural. They are actually markets
safety valves.
What intrinsic conditions? Is there bust
ness disturbance anywhere or the threat of dis
turbance? Measure security market values by
fair, square computation of inquiries like these
for. after every word is said and every act
accomplished, security market values that can
stand tests can never be more or less than a
reflection of what intrinsic conditions are NOW
there is no degree or manner of mystery in our
present business situation 1t amply discloses
itself And even casual consideration makes it
clear that not dispirting factor figures any
where-but that inspiriting elements abound and
are assertive There is no make believe In the
prosperity which the country Is enjoying 1t is
so real so tangible, that only billiards can mis-
take il and only dishonesty can make any ques-
ton about it.
regrettable incident is the reduction of the
quarterly dividend on Corn Products preferred
from IL to 1. The meagre information SO far
furnished by officers of the company discloses
no shrnkage in earnings warranting this reduc
ton, and some people insist on saying that the
action was taken more with view to stock
market operations than to the interests OF share
holders. AS the preferred dividend is cumua-
tive there can. of course, be no ultimate loss to
preferred shareholders if the reduction is mere
ly matter of bookkeeping. but the effect upon
the common stock of the company is severely
felt If this point of view be correct, it would
seem that the downward movement has run it's
course. The Corn Products Company owns and
operates the Glucose Sugar Refining Company
the National Starch Company. the Charles Pope
Glucose Company, the Illinois Sugar Refining
Company and the New York Glucose Company
all of which concerns have heretofore conducted
profitable business The Corn Products Com
pany began payments at the rate of Z per cent
on the preferred in 1902, continuing regularly
until this present quarter, and IN March. 1908.
an annual dividend of per cent was declared
the common stock. 1t seems unlikely that
there has been any such retrogression in bust
ness as to call for a reduction in the preferred
dividend-and this is the view held by many
stockholders who may demand more ample
knowledge at the annual meeting to be held next
Tuesday
In agreeable contrast comes the resumption
of dividends, after a lapse of five years, by the
Tennessee Coal and Iron Company-affording
clear proof of the genuineness of improvement in
iron and steel business. Moreover. this fur
nishes substantial explanation of the recent rise
III Tennessee Coal and Iron securities quite
apart from the rumors regarding the Southern
merger DEAL That merger, however. is be-
neved to be approaching completion despite
seni-ofacial denials, and it is more than limited
in well informed quarters that when accom-
plished the Southern companies will be found
nesting under the protecting wings of the
United States Steel Corporation. Such consum-
nation would still further add to the prestige
and power of that company, which is Its
present basis displaying marvellous recuperative
efficiency. Reports from the most conservative
sources all testify to remarkable expansion in
the steel and iron business. certifying TO the
certainty of not only excellent year, but an
equally excellent succeeding year. United States
Steel earnings for the current quarter. to be
made public next month. may prove revelation
to those obstinate pessnists who have pinned
their faith to the theory that the steel business
had reached its apex and was the decline.
The surplus already acquired land that will be
largely added to from now on) forecasts the re-
sumption of dividends United States Steel
common stock-and the course OF that stock in
the market discloses confidence of capital in its
future
Professional Wall Street possibly too
much in a hurry in concluding that there was
abandonment of the comprehensive plans FOR
Southern iron and steel corporation merger.
Pursuing this theory the talent Of the Stock
Exchange went short of all the Southern iron
issues: and as a result they pay costly market
penalties Instead of collision between impor-
tant interests related to the various Southern
properties it is found that there is actual CO.
operation. What. moreover, becomes clearer and
clearer is that Joseph H. Hoadley is believed to
be prepared TO do precisely what he announced
his readiness to do II is curious attitude
which some of the oracleS of the Street take
in their treatment of all Hoadley expansion.
Personal enmities. it is alleged, play chief part
in this particular. and there is industrious dis
tribution of antagonistic comment whenever and
wherever Mr.. Hoadleys interests appear-it be-
ing variously insisted that he is a very wicked
person and that he is just Incompetent, that
his undertakings are always dangerous and that
he really does not amount to a single thing and
does not deserve any attention whatever-Hoad-
ley meanwhile seeming to have no more ac-
commodating disposition than TO go calmly on
doing things in his own way. This probably is
very unmannerly of him, but that the process
has substantial business results is evidenced