New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-24
The Financial World

~There Is not flaw In governing conditions,
everything points with precision TO vondsrfuI
business year, which nothing can impair but IN
foreseeable calamity
This is a summary by one Of the most aisrt of
Wall Streets experienced observers. And Ia ths
Judgment there seems virtual unanfrnfty among
authorities. The extraordinary agricultural
record Of the year has resplendent companion
ship in Industrial conditions unprecedented
Only az to the money market Is there any dis-
agreenent-some ultra-conservative students Of
the situation still urging caution untl finally
the crop requirement season Is concluded
Yet throughout the past week money barely
got above per cent: and that for Friday Ioans
wherein contracts extend over Saturday and
sunday-and even then the fractional rise above
4 per cent. was for but a relatively insignificant
proportion Of transactions. According TO peg
smistic authorities. 10 per cent and higher rates
were certain before this time. while bankers sag
that we have with this week actually turned the
corner OF Western crop drafts. Meantime. money
shipped West is not money extinguished Il
will be back ready for ordinary use soon u viii
bring more with it-vastly more. The West and
South Will this year be buyers In voluns hithsr-
TO unapproached. with our international credits
destined TO reach phenomenal records Tho GER
tainty Of gold importations on a large seals Is
no longer doubted
Erie acquires control OF Cincinnati. Hamilton
and Dayton-acquires IT by outright purchase Of
a majority Of its stock Professional Wall
Street cynically welcomes this important trans
action with the deduction that Erie has acquired
new burden" The fallacy Of such argument
is patent. This deal means the Inauguration Of
Greater Erie-the rounding out OF a trunk line
system actually rivalling the greatest In i'm
sures magnificent development. When the
financial Plan IS made public It win be found
satisfactory. It may involve the retirement OF
Erie second preferred. leaving but TWO stock
classes-the first preferred and the common
upon each Of which Erie earnings will show
dividends net gain Of S3.OO0,O00 per year Is
what Cincinnati Hamilton and Daytons &C.
QUESTION can provide forthwith for Erie-so vast
and far reaching is this combination and It's In
fuences.
Southern development continues q prominent
feature Of national expansion The Southern
Cotton Association recommends to planters thst
they hold their cotton at eleven cents per pound
With the planters and bankers OF the South able
financially to maintain this position-which
seems probabIe-the cotton crop OF 1908 VIII ba
more valuable from the point Of cash valus than
the crop Of 1904. So far as the security market
is concerned. acceptance Of Southern prosperity
is already manifest Notable Illustration Of this
appears IN the strength Of Southern Railway
shares. President Samuel Spencers return from
Europe is likely to be the sequel FOR conseQuen-
tial developments
There is significance In the new strength
which Louisville and Nashville. Atlantic Coast
Line and Nashville and Chattanooga issues are
showing. 1t is semi officially forecast that
Nashville and Chattanooga shareholders will
have submitted to them proposal to acquire
their stock for what viii be equivalent 70 up
wards Of 5000 per share.
Some excitement has been occasfoued BY sue-
gestions OF ST. PauTs plans for building to the
Pacific Coast Much exaggerated tales have had
Wall Street currency. Wherein there could be
reason for disturbance over ST Paul's co-opera-
ton in far Western development VIII be hard FOR
sensible people to understand There was SIM
liar outcry little while ago over the Western
Paoific's projection. Instead Of menace there e
national welfare in such progressivenesS.
Wabash affairs continue a live topic Of Dis
cussion. In banking circles It Is not believed,
however that there VIII De distdroanee OF tlaL
maintained by Mr.. Gould.
Impending developments IN St Louis South
western will be beneficial to that companys pre-
ferred shares.
Canadian Pacific making new high records
this week is expected by international bankers
to be benefited by announcements having % DO
with the future financial policy OF the company.
The sturdiness OF Canadian Paciio's expansion
auxiliary. the 500 System, whose progress
comparing 1900 with the fiscal year Just ended)
is reflected in an increase in gross earnings ap-
proximating % per cent. while surplus earnings
increase 70 per cent.-net mounting over gross
at the rate Of three to one.
There are indications that the Canadian Pa
cific has still another 500 in its Duluth South
Shore and Atlantic system There have been
especial reasons for waiting policy in this lat
ter property. Vast sums have been expended
upon its physical Improvement There have
been long years of building for the future"
But now a development campaign seems ready
what is Of further Importance in the Duluth.
South Shore situation IS that extensions and
connecting lines will bring a volume Of traflo
and net financial returns which will give 20 the
company new status It may not be irrelevant
to point out anew that Duluth; south Shore
mon sold two years ago when It started upon Its
rise Of over a hundred full points.
It is much urged by adverse critics that the
market has been spotty. that only relatively
few groups Of stocks have advanced during
recent activity. This actually Isl one Of the best
elements in the markets present situation The
list is long Of properties which have not yet
begun to discount increased prosperity. In the
list ara such stocks as Baltimore and Ohio and
the Fries and all Of the Vanderbilt Juniors
Nickel Plate notable Illustration. Toward the
end Of the week the latter issues had some
higher for there is no reason to qualify the
declaration made long ago in this review that
the Vanderbilts have in Nickel Plate second
Omaha In both properties the policy OF de-
velopment has been Identical
Local traction stocks improve Mr.. Keene u
credited with active interest in Brooklyn Rapid
Transit Announcement Of its new North River
tunnel enforces public appreciation OF Metro
poItan's expansion policy. All the local traction
companies increase earnings. and market rehec-