New-York tribune., 1905-08-20
The Financial World.

the public in re-enterfng the market 4, t.s,~
hold OF those lower priced issues which hay. -.
yet discounted TO any material extent thu -
tainty OF the great good fortune that is co..
ahead. In this list prominence belongs To s,,.s.
like Erie. Nickel Plate. Southern Railway -
cago Great Western, the HawIey issues E,,.-
and Texas. Kansas City Southern. St. ror,'
Southwestern and Mexican Central wisso,,
exception these are stocks worth fnsrinsic.r,
much more than any price at which they h,,.
been selling; and public buying on any ubs-
scale win be attended by natural advances
In the OF Nickel Plate IL may be soon A..
closed that there Is more than gossip IN r,r.-.
suggestions OF intimate relations with rar,.
wanna through the developments planned =,
Lackawanna by Standard OIL fnancier, n.
during the past year have become inruent,,t. :.
New York Central affairs. Lake Shore ca, -.
ford to divide Nickel Plate control with ra,k,
wanna, just as 1t divides Reading control rf,.
Pennsylvania
AS TO Erie. there Is strength because ~. e.,
that strength is warranted Is recoEuzss :,
astuts and powerful inanciers. That soma -,-,
prehensive coup inpends in Erie "a no, N =.
doubted Eries day OF common stock dfvtss,,,
is not far distant. OF course. great SUNS ,,,r
have to be expended upon the property's b.tt.-
ment-those great sums now are avaflabI.
already in use-wfl1 speedily be showing u.s =.
suits for the very common stock dividends her,
predicted.
In Chicago Great Western affairs inro-rn,ro-
If important Developments comes from abross
for foreign investment interests have bAoo-,.
enthusiastic over the disclosure that u,r,
hitherto each year has involved the rats,nz =.
fresh capital. the exhibit TO shareholder. No.
is Of property in such easy financial eondI,,o,,
as to warrant the early declaration OF dividend,
abides with inner Wall Street the view that t5s
Great Western must eventually become III.
property or intimate ally Of one OF the greater
Northwestern systems.
In similar strategic situation are the various
properties designated by Wall Street a. the
Hawley properties Toledo. St Louis and West
ern, Minneapolis and St Louis. Colorado South
ern and Iowa Central In at least two Of thess
announcements OF exceptional consequence nav
be expected soon.
Mexican Centrars attractiveness. again and
again pointed out IN this review has become
impressed upon an important group Of American
capitalists not hitherto interested In the prom
erty. They have become large confident ac-
cumuiators Of the stock; and while those who
are best Informed do not anticipate an irnmedi-
ate upward rush in Mexican Central shares
there is no hesitation in expression OF the belief
that within the next few months the market
quotation will substantially advance-that in
less than year the present price will be
doubled They who join IN this prophecy are
conservative Wall Street authorities.
While the stocks OF lesser price are bound 70
have conspicuousness and advantage in de-
veloping market 1t is likely that as progress is
made. favor will expand rapidly in our standard
investment issues-those commanding a pren1i-
um above their par value and yet not quite ad-
mitted to the Lackawanna-New -Haven-Great
Northern class. Union Pacific whose activft-
and buoyancy have been marked features OF
the week. typifies this class; and with Union
Pacific pre-erninence is shared by Pennsylvania
Baltimore and Ohio. Reading Illinois Central
Canadian Pacific. Louisville, New-York Central
and all the Junior Vanderbilts. These all are
entering an era Of gigantic prosperity with ac-
complishment behind them which guarantees
to shareholders the fullest enjoyment OF future
profits Capitalists the world over are alive to
the situatiOn-they are putting their money
freely into such high class American securities
and they are putting it there TO stay. This buy
Hss is not at the mercy OF speculative sentiment
these holdings are not to be dislodged by the
antc demonstrations OF bear parties.
The investing and speculative public is merely
beginning to realize the enormous equity behind
Union Pacific stocks; and that this has taken
long is not TO be wondered at when one under
takes for the first time TO make comprehensive
analysis Of Union Paciic's voIuminous and com
plex periodical statements. The new activity
and strength Of Union Pacific can largely be at
tributed TO the easy computation that can now
be made touching that corporations holdings OF
Great Northern and Northern Pacific after the
Northern Securities distribution, suggested by
the recent rise in market values OF these
stocks Without taking into consideration The
reported sale OF a part OF it's $50. o.
Northern Securities stock the Union Pacific Tas
entitled to receive SD O7O. .612 OF Northern Pa
cific and S2463S919 Of Great Northern The
present quoted value OF these two stocks ap-
proximates S149.O00.O00. The cost TO the Union
Pacific OF its Northern Securities stock is sup
posed to have been SCI. 100000. and there would
thus appear to be the staggering profit of some
thing like SSSOoO,OO0. This is. OF course cnly
approximation-but there is unauestonably
enough profit from the transactions 10 make
Union Pacihc's investment in Southern Pacific
stock all velvet" and realization OF his Is ex-
PLANTATION enough OF Union Pacific market
strength.
All the iron and steel stocks promise well
Sloss-Sheffield scrip dividend is forecast.
The railway equipment shares reflect vast rev
business. New-York Air Brake developments
are especially important.
The developing capacity Of well managed
American railways could not be more effectively
Illustrated than in the record Just now Us
closed OF the St. Louis Southwesterns hsea
years operations. Extraordinary changes haze
taken place. Gross earnings increase 10 Pe
cent and the gain in net approaches 20 per cent
Even the standard Southern Railway record >
surpassed-takng earnings on mileage bass
this being comparison per mile: