New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-07-30
The Financial World.


ward and upward steps. This very week come
two signifying showings from independent
sources-each Of inspriting character. Erie
Railroad inaugurates dividends upon its second
preferred stock. United States Steel Corpora
ton presents quarterly statement bulginz
with net earnings IN excess OF s3O,000.00O. In
Erie revolution has been accomplished; drastic
reorganization supplemented by progressive
control has been wonder working: and the new
Erie. freed from old time stigmas. stands con-
spicuously representative Of what is best in
American corporation readjustmera Results
attested by dividends already established upon
two classes OF shares-dfvidends succeeding
defcits-are Of double signihcance-they certify
prosperity and they prove the capacity OF able.
honest management Erie rises from the
slough Of bankruptcy to the heights OF success
Joining the ranks led by Reading. Baltimore
and Ohio Union Pacific Northern Pacific and
AtchisOn-all OF which. like Erie. have under
gone inspiring transformation. Such testimony
TO American growth and 70 American capabfity
20 utilize that growth IS convincing REPUTATION
of all the ISLANDERS OF Ignorance and malice; and
attempt to belittle such achievement wfthers
away They who aforetime howled hilariously
their Jest5 about properties "re-Morganized.'
are not laHghers who laugh last. While they
scoffed. prosperity progressed
United States Steel earnings for the second
quarter Of this year are more than s7O0000O
$7.OOO.O0O below the corresponding quarter IN
1902. when the famous boom OF the steel trade
was at hoodtide; and present outlook for the
remainder Of the year forecasts a total for the
twelve months that will run close race with
phenomenal 1902T-and this Is the same steel
business which only few months ago was
being indicted in every Wall Street nook and
corner as hopeIessly decadent-
Surely not doubt is left in any fair mind
that preferred Steel dividends are Just "a safe
as those OF standard railroad. And the com
mon stock looms up dividend probability
for with extraordinary allowances for better
znents and reserve funds running into millions
of dollars. and the surplus account OF the cor
Poratton showing vast accumulation, Increase
in profits from now on must be for the benefit
Of the common stock. That same tremendous
National expansion which has revoIutionized
railroads stands back OF the Steel Corporation.
The same superb executive ability takes ad-
vantage Of conditions to produce triumphant
results.
OF course. we are hearing OF much 70 be ap-
pretended in the danger OF going too fast"
But this is not the conservatism it affects 70
be; II is the shadow merely OF that pessInism
whose loud proclamatiOns have had the effect
of holding the market in leash for some months
past, confusing confidence by parades OF fabri-
Gated scarecrows. 1t is the same voice which
but recently was in loud outcry over a multi
or pOssible-griefs having TO do with grain crop
destruction where there is destruction at
all; where, IN fact damage is relatively 80 in
consequential as 20 leave still dominant the
fact that are this year going to reap bumper
crops in practically every part OF the country
Cotton crop production is smaller than recent
yearly averages it is true; but even as 10 cot
ton one fact wholly clear is that whatever may
have been the contraction in acreage the falling
of is in accordance with the wishes and the
formulated plans of organizations among South
ern producers who have counted upon decreased
production for actual betterment for the
South. The revealed result is. moreover thar
in the matter of market value this shortened
crop is worth more TO the South in actual
money than a crop so per cent. bigger would
have been.
Among inspiriting records that OF the South
situation is not merely good. it is splendid
Well within bounds was last weeks statement
in this column; The investor who identifies
his fortunes with Southern opportunity gets
into an ultra conservative situation"
Southern railway shares are conspicuous
the Stock Exchange bargain counter Take Al
lantic Coast Line for specific example. It's
earnings during the past fiscal year equal 70
ville's capital stock is in the Atlantic Coast
Line treasury, and from this source alone At
ldnllc coast Line cOAleCJS what apprOXlmdTeS 8
per cent upon it's own entire capital stock-not
taking into account the surplus which Louis
Vile shows above its own dividends, equal
10 per cent more upon the total Atlantic Coast
Line stock Louisville and Nashville dividend
disbursements are to be re-arranged-matsri-
ally advanced. with guarantees of permanenCy.
COinCident with which. OF course. will be the
overflow into the Atlantic Coast Line treasury
of the surplus OF millions of dollars per wear.
Atlantic Coast Line itself upon an per cent.
basis is a prospect which seems not merely sure.
but close Even then than an additional
8 per cent could be added TO the annual sur
plus account
Many important railroad plans agreed upon
some months ago are now believed To be praCti-
cally ready for public announcement Some are
Of far reaching consequence. One of the earliest
disclosures may have 70 do with the Vanderbilt
properties Rockefeller influence in that quarter
will show in concentration and unifcation OF In
terests that will be profit producing. Some in
dication of what progresses appears IN the sud
den unheralded activity and 6uoyancy OF the
ratio of 50 per cent, Nickel Plate has been held
found in a semi-oficiaI suggestion this week
that the property can now be operated az s.
per cent or better" 1t is with Nickel Plate just
as IL used to be with Omaha: and it can be with
Nickel Plate in the future just il is with
Omaha to-day. Normal accounting Will show
dividends for Nickel Plate common.
Unannounced Erie developments are prelimi-
nary 20 the discovery of intimate relations with
Other great observation-disclosures nayhap, 70
announcement of a Union Pacifc-I Illinois Cen
tral-E.rie combination by which can be estab-
lshed the shortest of ocean TO ocean routes. with