New-York tribune., 1905-02-12
The Financial World.

pressed
borrowers az interest figures which may faIrl,
be considered inconsequentiaL
At the close OF the week. for example. s4o-
100000 was offered on call upon the Stock Ey-
change at per cent. and S17.00O.OOO was Ioapsd
at Ia. In the face OF records like these-un-
precedented In American financial history-hovv
curious seem the grave discussions which bro
ceed to what may or may not be signIaed bv
the weekly bank statement. Yesterdays STATE
ment' disclosed a shrinkage in surplus reserves
OF some millions Of dollars. and bear Spectators
sold the stock market short this exhibit
theOrizing that investors would be worried ana
made nervous at the disclosure view ard
an argument simply ridiculous in considering
coincidenEly the fact that loans Of tens os
millions of dollars are urged upon borrowers at
a third OF the legal interest rate-and less. Il "a
facts that count Two per cent money Is safe
guard enough for any security market.
OF high Importance in security market move
ment is growing appreciation OF the value OF
the various steel manufacturing concerns. NOta-
BILE advances for the recent week appear IN
the securities Of such companies as Tennessse
Coal and Iron. Sloss-Shefield. Republic Iron
and steel and Colorado Fuel and Iron These
improvements in value follow IN the wake OF
persistent advance in the shares Of the United
States Steel Corporation dominating the steel
situation With. Steel common selling around
30 and the preferred around 90 how clear It Is
structures 2
or so ago were shameless. The corporation has
demonstrated its ability through dull times b
earn it's dividends-thrOUCh times OF which
there is no reason TO apDrehend a return-ir
has cumulative rights protecting IL against all
CONTINGENCIES except absolute national bank
ruptcy-an1 it is selling below par. II this
stock had not been so savagely assaied BY
professional traducers. If il rested solely upon
ascertained value and clearly revealed earning
power, il would now be selling-where II surely
will sell-at a price commensurate WIN Us n
come standard; and that basis l1t would nor
be excessive. for 1T that IL would stl yield >
per cent to investors.
cumulative. preferred stock Of company con
trolling the vastest industry or the greatest
Nation in the world
That all the metal securities are strong IS nat
uraI enOugh-aH are prospering, all are earning
larger returns indeed than even the most earnest
optimist dared but few months ago anticipate
We are not unlikely soon 10 have announcement
of what will virtually represent consolidation OF
all the active iron and steel making properties
of the South. Tennessee Coal. Sloss-Shefheld
Alabama Coal and Republic Iron and Steel The
last named happens Just now to be best situated
OF all. having found itself able to float S10OO0-
600 of long time bonds on exceptionally liberal
basis equippiEg it with working capital in
abundance and at the same time disposing OF
all floating debt embarrassment What Is OF
additional Importance is that dividends upon
the preferred stock are about 10 be declared 1t
may be that the first declaration win be at the
rate of \ per cent. Seven could be declared and
with still a large surplus showing. Republic
preferred has been bought within the past two
months largely by United States Steel Corpora
ton insiders Whatever may come to pass with
the other outside properties, 1t may be COnsid-
cred as fairly safe forecast that Republic IS
destined for amalgamation with United states
Steel A SUGGESTION from high quarters IS 10 the
effect that Republic preferred may De eX-
Changed share for share for United States Steel
preferred
Among the changes of the week the most SEN
sational appears in the extraordinary rise or
the Federal Mining and Smelling shares They
have risen rapidly on purchase by interests
openly identified with the Standard OIL Com
pany The fact that Mr.. George Gould and Mr.
RockefelIer are directors of the company ac-
counts to some extent. doubtless. for this ag-
gressive investment buying Federal Smelling
preferred, receiving per cent dividends (out
of net income far beyond that amounO Is natu-
rally attractive to investors, while the common
stock estimated now TO be earning something
over 30 per cent? may naturally be expected 70
command the attention of the speculative con-
tingent. What may have started the recent
rapid rise in these shares appeared in orders 10
take large amounts for foreign account London
and Paris have both been buyers-Stardard on
representative abroad apparently inducing such
investments
week They ought to sell higher. Regardless OF
the abundance Of adverse representa- tions both
the common and preferred stocks are cheap
Corn Products preferred, regularly pay . pr
cent upon par. is an exceptional bargain DuE-
ing the cOmpany's worst days its 9 per cent pay
ments have not been interrupted
While the New York Central deal is round
ing itself out-the long anticipated Nanderoht
Holding Company. in course Of arrangement
the cheapest of all the Vanderbilt issues are
those of the Nickel Plate Company Nickei
Plate is being operated on the basis Of ABOUT
so per cent of its gross earnings figure aito-
gether abnormal. If Nickel Plate were cOnduct
ed on the same basis of operating expense tnat
is found by the same management sufficient lot
Omaha, the result would show that for more
than a half dozen years past Nickel Plate has
earned D per cent every year fOr ltS AiSt ga.
ferred stock, 4 per cent every year ioI Us -.
Ond preferred and per cent thTouSnoul ~ -
same period upon the cOmI1on-WlIA sun d 49, 49,
large sum available for surplus account ms
sort of hnanciering may for a time, even TOT :
long time get recognition as conSerVa llS'l' ost
i'm the end il can have no sequel otneF OIa.
(already appearing in Omaha) or estao.ls-isJi o-Ssi
dividends for every issue OutsJandlhS- SlcHs'
Plate common the Omaha basis or cs cSIclte
tion is earning more than a Ions list Of slySaS Ss
selling at 20 so and even 40 points hSile, 80
It's OBSERVATION-DISCLOSURES like Chesapeake anu - -
and Norfolk and Western. for example anu s'0'
Atchison.
Pacific Mail quotations stfu lag-they shouiD
not What seems to be the most Important ous-
ing of Pacific Mail comes from Washington II
the same quarter seems TO originate some cur
Gus developments in TOBACCO Trust securities
Tobacco Trust insiders heIc say they DO hO'
understand the current manipulation IN these
shares There Is just now no reason, tneS ~, ~
sist for bulling TobaccO-and. outsiders VIZ
nersist In running counter to this official posi-
IL,