New-York tribune., 1905-04-09
The Financial World.

follow naturally upon prosperity. We have ma
tionaI good times-and current stock mar
ket advances are but the normal echo.
United States Steel shares are barometer
enough for the fair observers guidance. The
preferred has crossed par this week. It's price
gain is Iarge-"phenomenal" is a Wall Street ex-
clamation. Yet every fraction OF all the advance
has been warranted dOubly-warranted by the
pre-eminent character OF the corporations man
agement and warranted by the intrinsic worth
OF the property itself. warranted by dlrectorial
capacity and integrity as well as by the un-
precedented position Of trade control
And how petty now sound the sneers and def
amations which throughout last year deluged
the corporation and all OF it's managers-how
petty and how sily-how utterly extinguished!
With trade conditions ruling the rest Of this
year on anything like present bases, Steel COM
mon is bound to be dividend payer again. I'm
portant inside interests say so.
Union Pacific has furnished a sensation in its
new preferred stock announcement. Some ar
dent endeavors were made to give it the guise
of a trouble sign. But sensible judgment was
not befogged. The issue makes another step for
ward in the rounding oft OF our national railway
development. The New York Central-North-
west Omaha Union Pacific deal comes closer
and that stock, lately somnolent. should have
real awakening.
Another independent property which is likely
to be found prominent in this same development
is Toledo. St. Louis and Western-one Of the
most important banking houses the Stock
Exchange issuing to it's clientele the following
memorandum:
There has been buying Of Toledo. St. Louis
and Western stocks OF excellent type, and those
who are well informed on the situation believe
that an improvement is pending which will be
very material in its nature. The road is one
which should properly be affiliated with one Of
the larger corporations. presumably the New
York Central system. and we are given to under
stand that the time is not far distant when this
matter will be more generally discussed and un-
derstood. In the meantime the securities offer
a tempting speculative proposition we
gard it,
The firm making this statement is OF no less
standing than Strong, Sturgis & Co.
Chicago's municipal election was another event
Of the week upon which some bear reliance CEN
tired, but its market influence was nil. This
stock market is not in the hands Of children;
and grown folks don't worry over crude pro-
grams Of conhscation. however hippodromed
Chicago street railway shares-the only issues
under assault-have. indeed. advanced as sequel
to the grab bag election.
One notable signifying feature there was in
this campaign-One time honored target the
community have quit firing at. The Peoples
Gas Company not descended upon this
time-raidng performances in that quarter have
finally fully spent themselves, and the stock Of
the company shows signs now Of starting tow
ard the market value which belongs to it, As
a property paying per cent dividends for years
past-and earning beyond this dividend rate sur
pluses that increase every year. Peoples Gas
ought long ago to have been far above its pres
ent price. Not merely the speculator, but the
ltra-conservative investor must be impressed
by a study Of the property's financial situation
its established prosperity. its phenomenaIly ex-
panding earnings and profits.
What has been mysteriously whispered about
for so long as the smelling deaI' approaches
completion. American Smelling shares are at
prices not hitherto approached and apparently
bound higher; on developments too. that repre-
sent value. Almost the look Of a miracle fs in
what has been accomplished there-progressive
management providing revolutions great ma
uonal industry's established prosperity standing
as monument splendid and deserved to the
sagacity. the enterprise and devoted trusteeship
OF Meyer Guggenheim, the big Drained clean
handed man. whom death claims at the very
height of achievement
Into the vast "combination'' now arranged
virtually all the important smelling interests Of
the continent will merge. Federal SmeItine. and
Mining is one of the properties whose intrinsic
value commands liberal appraisement in the
consolidation.
During the week Federal issues have been
buoyant, and insiders are predicting much
higher figures for both classes of stocks One
quiet report. having semi-official Endorsement.
forecasts a development plan wherein the out
standing $5,OOOOO0 of common stock will be
rIo N
going to present stockholders-estabIished earn
ings showing much beyond 10 per cent available
for increased capital. Federal preferred will be-
come in the consolidation developments an in
vestment security upon parity with American
Smelling preferred-its z per cent dividends
safeguarded by what will be the equivalent OF
an absolute guarantee. Under such eircun-
stances it is not difficult to understand the cur
rent buoyancy OF the shares and the confidence
Of insiders that materially higher market values
sure to be recorded.
Erie developments. very close at hand. are
going to prove Of much more consequence than
Wall Street has anticipated. Erie common as
a dividend payer will be one natural result
Coincidently Mexican CentraTs management
has been quietly accomplishing extraordinary
things, and Mexican Central may at any time
become active. The moment there is activity
there will be buoyancy. 1t can be stated upon
the highest authority that the controllers Of
Mexican Central property have. during the past
forty-eight hours. declined an offer of $40 per
share for their majority holdings. This is ex-
traordinary in view OF what has been the recent
Mexican Central security market experience:
but I permitted to state it upon official
authority.