New-York tribune., 1905-11-26

! i0nr
accounts. But what is most effective. marker.
WISE in this is that the intrinsic character OF the
market is materially strengthened. A scan,
percentage of weak accounts is left in the mar,
ket Timorous traders have stepped aside Tn.
whole market is bulwarked indeed, By the ar
ceptance of cautionary counsels Without sen.
saton, the fashion Of prudence leaves securitie,
Leaves the markets control-in still stronger
hands.
Moreover, there has been correspondence in.
cited hurried rush upon the part Of all the bssr
small fry of Wall Street to get short Of the
whole list indiscriminately. hot only are stocks
sold short but short accounts are put cut reck
lessly. with no saner theory, a rule. than that
everything ought TO be sold for the mere rea-
son that it has had an advance-pleasng con-
tempt Of the old fashioned notion that brighter
prospects, better conditions larger earnings.
increased dividends. are emitted to exert any
influence whatsoever
Conspicuous i'm the weeks activity have beer
the local traction issues and the shares Of the
Southern iron companies. In important bank.
ing circles there seems to be acceptance Of cur
rent reports that finally there is 10 be amalgar
nation of the leading Southern steel and iron
corporations. According TO the most discussed
statement Tennessee Coal is to go into the con
soIidation at 12O-and it sold yesterday at the
highest figure it has touched in years, not far
below 120; and Sloss is to be taken over at l0A
In the project are to be incorporated also the
southern properties of the Republic COMPANY
and possibly the Virginia Iron, Coal and Cssa
company, whose concentrated ownership. how
ever. has already refused 66 for its hodihgs-
it being believed that representatives Of the
United States Steel Corporation were the bid
ders. Virginia Iron Is now earning considerably
over 10 per cent
Brooklyn Rapid Transit's activity and strength
require no explanation beyond what ALREADY has
been many times noted In this review-ths war
rant of the property's own improvement Deal
rumors are unnecessary. Dividend prospects
are becoming clear enough for investment ap-
probation. Gross receipts are showing an aV7
eraga increase of $4,000 per day, while surplus
earnings for the fiscal year ended June 80, 1905
exceeded 81 6AO.000-equivaient TO 72 per cent
on the capital stoek-and these figures arrived
at after arbitrarily writing OFT amounts toE oS
purpose or another equal 10 anotheF : per ssH,,
An ultra conservative New England stausucsl
authority land, under the leadership OF Z y
Foss. of Boston New England investment ouy,
ing is a current feature Of prime importaness,,
predicts that within two years Brooklyn KspA
Transit must be earning per cent dNldehdS.
No market test is better than the dividend tssN
and 1t has been an encouraging factor ID tA7
present market that dividends at hand ana N
nrospeet have had recognized influence. VI
this basis is explained-amply waTantsa-aA
that has come to pass in those handsome ee1sf
opnlents attending Reading and Canadian 80
cifc and Union Pacific and Smelling ana NFs
York Air Brake and the others that have ialsa
best in market advance. Outcry against Rs~a
ing at 140 has for answer showing OF aI'lIsA'i
earnings beyond 20 per cent. Attack upon "a
madam Pacific above 10 is answered by d'''-s','
resources over twice its disbursements sH-s y,
ders over Union Pacific at l3l face the anS"e -
current dividends earned over and over u@H
profits and investment yields combining aye
terra over Smelling crossing loo is ansNets1 =.
the official exhibit that Z per cent al'iNsss
paid are out of Is per cent earned Ana oVSD
New York Air Brakes worth at LOO Is ans"o.-;
by the fact that it's per cent rate IS less '.'
half of what it's earnings are. NO rnarAee w.
better than the dividend test.
And what is important is the fact that tn'
Stock Exchange list is replete with opperl4h''.
Of promise even to duplicate what IS rounded ou.
in the foregoing. Reading, Smelling ana o'4.
stars are only fair forerunners. The di'iaSh'
ive-wilI command response yet wider MOI "
it difficult to locate some of the future faV0'i'S
Take, for example. international Paper Pi
ferred, with it's unbroken record of per Ssn'
for years past, and still quoted under w. q Ne w
low, even were there not the eAesf
tionaI prosperity conditions which attena t"'
International Paper Company's present sl'ue
tion-orders for its entire output booked -
and a. half ahead and the official stock list OF .l
company showing investment holdings o.
preferred stock to such an extent thai 'iie''
an average of less than so shares 10 each ssO.e
holder This 6 per cent dividend is not -, -
sibility merely. but established, tested-'nli''''
If accumulated surplus back of IL
Others deserving to follow dividend d'''a'-
are properties like Distillers Securities WIZ
ested 4 per cent. dividend produces over p. p
.ent. for the investor; and United StalsS Stalsant
suction preferred. which paying per -
yieIds close to per cent. at its current ~, ~, an
md this In face of the fact that II Is actu@' "a
American Smelling auxiliary, and one - an
,ronerties upon which American Smeiuhs V
idence is firmly fixed
Insurance inquisition developments ol-9
,ally so much counted upon by adverse sps-
ators to produce market decentralization ao =.
-ield that result In the manifold revela'iO-
80