New-York tribune., 1905-01-08
The Financial World.

ma
have on the Stock Exchange bear contlnrs,.
alert and resoIute. Here Is their phiIosoDhv.
Security prices are higher than they used n ~
on a variety OF selected dates: and this in a.da,
ger signal Yes. the country grows. business sr-
paEds and the assertive tokens OF prosuer.,
keep lntruding; but never mind natural CROWN
business expansion. prosperitys looming stura,-
ness-these are only a nablt anyway: the rpaY
test is that quotations are above where we 70,
used to them in our toyhood.
Wherefore. an aggressive short interest: ana
though the shorts make little money they an.
piucky and persistent-their raiding struggle,
requited (even II IN no other way) by one Tow
that every bear forever revels in-the license "a
make faces at John W. Gates and cali aim
names-for Gates and they with whom and for
whom he acts still stand answering in their
confidence that actual good times are neifhe-
a hurt nor handicap.
IT see" says he Just one thing bigger than
all the rest-prosperityE'
And what answer anywhere IS there OF Iozs.
or Of fact contradictory? Would you hava
ultra-conservative leadership? Marx then tsa
corporation example OF A. ]. Cassatt and real
ize that swelling earnings and expanding sur
pluses. translated INTO bigger dividends signify
something. Pennsylvania sets no pace thar
prudence does not warrant. What Reading
what the list Of Pennsylvanla's controlled ana
related corporations are to do-provide guidanc,
clear enough The business situation Is no,
only undisturbed. it is all right: It Is more than
passively satisfactory. it Is insplriting
Union Pacific mas had prominence IN N.
weeks market. In the character OF It's Absorb
ton buying appeared the important feature.
Investors who are seldom satisfied with any
thing less attractive than exceptional first mort
gage bonds. have been conspicuous buyers-in-
pressed by the fact elaborated in this review
last week that Union Pacific Is now actually
earning IT'S entire dividends from the income Of
the security investment it owns-not taking into
account the vast sums which wiz reaea
Union Pacific treasury when (soon) Southern
Pacific is put upon a dividend basis-present
Union Pacific dividends completely earned
without recourse TO the tremendous earnines
which it's transportation returns pile Up.
Vying with Union Pacific in activity. New
York Central and Erie issues have commanded
notable attention. AS said here last sunday
New York Central is about to benefit through
new developments whose immediate effect must
show In extraordinary expansion
AS TO Erie. the plain. simple truth is-just as
in this column over and over again has been in
sisted-Erie common is on its way to dividends
same snickering that has kept the superior
snickerers from reaping. so far. iota OF the
20 point advances averaged already by all these
classes of Erie stock Where is the sanity IN
comparisons that fail to recognize change and
progress. and the certainty OF prosperity, IN
Erie's TeeOrd?-a property that to-day handles
and profits-not as carrier merely but as miner
and owner of virtually a full eighth Of the
tire anthracite coal trade of the country. The
bear Erie is simply preferring prejudice to
profit. OF course. there may be market turns;
quick traders may be able to scalp occasional
advantage out Of fluctuations; but for the buyer
who is something else than a day by day ner-
trader. Erie viii return rewards. Thers
are special reasons for the buoyancy of the sec
Ond preferred
Rock Island looks attractive. The common
stock acts as If actual manipulative force had 70
be used to hold the price down. The common
stock is TO be accorded voting power.
Pacific Mall Is a stock worth watching Ap-
parently it has not market friend. But more
than one influence is shaping 70 assure increased
value.
Mexican Central developments beyond expect
alton seem approaching. Contest for control
nsy even be rene xed-thOugh contest is hardly
Hgerency. What appears Is that important
financial interests already having vast Mexican
commitments are ambitious TO own Ma4iGAa
Central This they do not attempt TO disgafe>-
going so far the past week as to make formal
firm offer TO the prOperty's present controllers
of approximately $40 per share above the current
market price for blocks Of the stock All the
railroads of the Republic, under concentrated
control would establish a new situation and-it
is easy to sea profitable one.
Local fractions, notably the Metropolitans.
have been showing some softness II is prob
able. however. that Brooklyn Rapid Transits
fortunes will soon benefit substantially Earn
ings now running at the rate of S16,OOO.OOO per
year-Manhattan's gross apprOximated-and
gains scored at the rate OF 100000 per month
would seem 70 warrant the estimate OF the bank
er who says:
''As the result OF actual personal investigation
am convinced that this Brooklyn property viii
soon reach a permanent dividend basis. It's
stock is destined to rise above par and stay
there. Study BrOOklyn's phenomenal progress
building records there going beyond any ngures
ever anywhere hitherto known-and realize that
as at present managed Brooklyn Rapid Transit
IS keeping abreast of the citys rushing growth
note Just this one thing-and there can be no
doubt by any sane observer that the property
mOnopOlizing local transit service Is bound 10
prosper almost hnitlessIy
He who expresses this view Is no professional
optmist. An important capitalist and investor
OF New England he has gone as an investor
INTO brooklyn shares on a substantial scale ana
he is taking strong friends with him such new
investment relationships have significance be-
yond mere immediate stock market considefa-
tiOnS.
Foreign interest In American securities Is
showing increase at the beginning OF the year
some buying for London and Berlin being esN
pectally significant. There are, for example,
large German orders in Southern Railway
southern Pacific. and-a new develOpment-in