New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-08
The Financial World.

The business week has been without disturb.
ing incident. What is particularly encouraging
appears in some expansion Of commission house
transactions.
Harvests are made-and they are phenomenal
~ large. commanding exceptional prices. In In
dustriaI affairs every development is record
Of betterment-not merely is this true in iron
and steers extraordinary exhibit but true gen
orally in every manufacturing quarter. And
commercially the countrys condition Is shown
by trade reports uniformly inspiriting
That the public will stoldly ignore towering
national prosperity is a theory which does not
seem to have the groundwork Of characteristic
American business sense.
Most insistence by the bear party in the mar
ket attaches to their claim that security prices
are too high--so high that warned that
advances cannot be made from such q Level As
pointed out in this review more than month
ago-when this same depression cry was being
hurraIIed everywhere-the logic Of all this o-ae-
ularity boils down into the argument that
market values are illegftinate because son7a Of
them were formerly lower Union Pacific was
once under 10. ST. Paul sold at 20. Jersey Cen
trail and Delaware and Hudson and Lackavan-
ma and New-Haven and Pullman and Westing-
house-a of them alike-used have lower
quotations. Yes. lean years have been OutIived
progressive management and devoted trustee
ship have made Old properties new. weak ones
stawart-deficits supplanted by dividends and
dividends bulwarked by surpluses-but prices
are too high. because-beCaUSe-b because We
never saw them as high five o.. ten or even
score of years ago.
OF course, following its curious annual habit.
professional Wall Street affects to be astonished
and worried to find an active money market
Crops have to be moved and money has to be
furnished for that purpose: but each and every
autumn there is profession Of nervousness when
the natural sequence rise in the call loan rate
appears Actual funds exist in ample volume
in every financial centre Of country and
credits existing abroad Of enormous total can be
drawn upon at will if there be the demand Al
ready these foreign balances have been used TO
some extent, as shown by current gold imports
and announced engagements. The idea that ac-
tive money is hurtful to the security market is
ingenious perversion. The very diStrust created
and nurtured by aggressive bear cTusades
the cause of the abnormally low money market
Of the last year two. Now confidence grows
actual movement of crops and commodities
expands. demanding the of capital, and
naturally, the short time rate moves up. There
is no expectation in authoritative banking
circles that the per cent. quotation scored last
week can be maintained though money IS not
expected to recede to the lethargiC per cent.
rate long dominant. From / to , per
cent-it is anticipated-win be the ruling figure
throughout the fall and winter; and there is
nothing in this upon which 20 predicate security
market decline.
reaching out to ever greater fields, when doubt
and distrust subside then money becomes ac-
t1Ve-anQ at SUCH JunCtuTe even nigh money
is the agent of prosperity There is nothing
strained In this contention, nothing opposed to
logical deduction, as testified to BY the con-
sensus OF opinion throughout the banking COM
munty. And current security market move
ment verifes the argument
The bear campaign against Chicago Subway
seems not yet to be abandoned, for there are
apparently still some Chicago bankers who have
not been able to acquire all the stock they seek;
but manipuIative sandbagging has not been eff
feetive this week-reckIess rumor mongering
falling fat-the price Of the stock showing even
some advance. AS to what are the facts in
Chicago Sideways business situation. the fol-
lowing statement is made by Mr.. Clarence D.
Simpson, of this city and Scranton. under whose
leadership Pennsylvania capitalists declining
to surrender to the demands OF certain Chicago
politlco- bankers) have financed successfully the
last enterprise from it's very inception:
Never in the history Of the company have its
affairs been in as good shape as now The
New York Interborough passenger subway had
thousands of columns of favorable newspaper
comment and 1t was made known to the Whole
world what it was, yet when It's stock was
selling around 30 no broker would buy it on a
margin nor would New York banks loan money
on it. When the stock worked up TO 11S it had
sensational break from 11S to 81 in few
minutes-yet that did not affect the property
and to-day it is selling at 212, Notwithstanding
the fact that since that break property-holders
have begun suits against the New York com
pany amounting 10 one hundred nllLOn QOLarS-
Chicago Subway has thirty-eight miles OF
completed tunnels, twenty miles more than New
York. There has never been a property-holdeT
to suggest even that any damage has been done
to his property, and there has never been any
litigation or thought of litigation, and all re-
norris 70 the contrary are absolutely false
There has never been a water or gas pipe. or
sewer disturbed. No foundation Of any build
ing has been disturbed. No injunction has ever
been applied for. No accident has ever hap
pened. No claim for damages of any kind has
ever been made.
erty for the past three years for the purpose OF
inducing holders of the counpany's securities to
dispose of their interestS-and every security
holder is familiar with this fact But the great
importance of this property becomes known.
AS we pay the city percentage Of our gross
We are in perfect accord with the railroads who
furnish the freights. We are making connec-
lions with the largest wholesale and retail
houses as fast as we put them in, and each
one is anxious to have theirs first. We are
handling 1000 tons daily now and increasing
every month We receive from sixty to seventy
five cents per ton for hauling freight mile
and I believe the stock is worth much as In
terborough stock, and will eventually sell as
high.
When c. D. Simpson makes statement n
can be depended upon always and absolutely as
straightforward requiring no qualification what
soerer And the financial world knows this well
Reports by our standard railroads provide
warrant for enthusiasm. Take, for example, the
exhibit of the 500 System for August-gross
earnings surprising S90oO0O-an increase over
last year beyond 80 per cent; while surplus
over operating expenses and all fixed charges