New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-03
The Financial World.


conceptions. The overwhelming feature Of the
week IS the conclusion of peace between Rus
STA and Japan. Over a million men turn TO pro-
duction from destr1iction-two great nations
agree to quit warfare-the worlds money mar
kets are relieved Of future war loans-the happy
solution OF an intricate problem portends world
prosperity. And Wall street-or to speak more
correctly, section OF Wall Street-seizes this
/ contamination signal for the selling OF secur-
tiles.
Such transitory profits as come from selling
war supplies not for one moment comparable
to the lasting benefits derived from the orderly
conduct Of commerce The close Of the war In
the Orient means the opening without restrc-
ton Of Asiatic markets for everything which
the United States has to sell; and the resultant
effect upon our Industries and transcontinental
| railroad traffic must inevitably be widely felt
And the dramatic participation Of Theodore
Roosevelt in the achieved result must from even
the crudest commercial point Of view prove to
be an advancement of American prestige dag
zling to the Oriental imagination.
In aid of a curious bear demonstration ap-
peared the alert and resourceful Lawson Ad-
vertisenents from him predicting srrashes IN
the copper trade, published all over the coun-
try were received by the press with sneers and
gibes-but Lawson is to be reckoned with His
earnestness, his perfervid eloquence. commands
the PUBIC ear-and ne mas 1OtlOWerS. IL - bn0
fashion to hout hinl-but he can be much more
serious market factor than Wall Street cares 20
admit.
Meantime, through all this whIrl and furry.
there is not the least change in the favorable
character of governing conditions Crops are
maturing under exceptionally favorable in
fluences, guaranteeing hitherto unequalled
cash return to producers. And the markets OF
the world are so situated as TO make demand
certain for every bushel of grain and every bale
of cotton that spare. This is funda-
mental prosperity. And in the industrial world
there is let-up to urgent demands from con-
sumers.
When the market rights itself-and that Is a
matter temporary whoiIy-we are likely TO see IN
quotations the expression Of actual value esti-
nation. Indeed, it is upon that basis we have
had all our recent appreciation, and Interrupt
ton of advances signify nothing beyond the
resting disposition. 1t Is the view OF Wall
Streets professional coterie. explosively pro-
claimed, that prices are too high, because stocks
formerly didn't sell at current fgures-careiess
(contemptuous) of the fact that old-tine values
were keyed TO earnings now so far surpassed az
to he Incompatible This attitude is fashionable
without being sensible. Candidly. it is idiotic-
Value is the test in this market-and value,
fortunately, is readily discovera BILE, prOvable-
Attention was called specifically in this review
last Sunday to the attractiveness OF Chicago
Subway shares to investors who are willing to
be patient. and it suggested that in due time
the present market value Of the stock will
double That estimate believe to be thoroughly
conservative. The extraordinary appreciation of
New York's marlborough subway seems sure TO
be duplicated-the Chicago property being
carrier of freight in contrast with the exclusive
passenger traffic of the New York company.
Against the New y orII Interborough companys
S35.O00.OOO capital have been issued S33.GoO,O0o
city bonds and il is understood they have issued
100000 notes for equipment. They own the
subway and a lease of the Manhattan railroad
company { per cent. guarantee The Inter
borough Rapid Transit company was formed
with a capital of SO. 100000 to complete and
operate the subway. that in round numbers
they have S33,OOo-0O0 bonds. $33,oG0oQo Inter
borough stock and $50 0OOO0O Interborough Rap
id Transit company stock-a totalzef S950o0OOD
and marlborough Rapid Transit stock is quot
ed at 215 per share. Upon the other hand, the
stock of the Chicago Subway is Si00o000O and
this is a holding company. having issued about
$17,0O0.OOO bonds (out of S30.O00.O00 authorized
and has thirty-three miles of tunnel completed
connecting with all the depots. wholesale houses.
hotels and shipping docks of Chicago. Com
pairing receipts, the New York company carries
passengers at five cents each. down in the morn
ing and back in the afternoon Csix to ten miles,
and does comparatively little at night, while
Chicago Subway handles freight, and the lowest
revenue it receives is sixty cents per ton for
hauling distance of one mie-and the system
will be In use "a hours a day. Now. any railroad
will haul soft coal 200 miles three mills per
ton per mile or sixty cents per ton for 200 miles
and consider it profitable. There is city in the
world where business is so congesJed in a mile
SQUARE as in Chicago. In New York you can go
from the Battery TO 42d Street TO compass the
same business and then it would not include
ant of the depots except the New York Central
as the rest are in Jersey City. Hoboken and
Weehawken There is no doubt that the Chicago
Tunnel is a most valuable franchise and will
become a tremendous Garner imuediately-in-
spring the confidence of its friends that the
stock will cross marlborough.
II is not needed in this weeks review that
should record anew the list Of stocks which
I believe investors will find profitable; it is .
list over and over registered here. In II are
every railroad of the Southwest every indus
trial with which the name OF ]. P. Morgan IS
identified (Steel the ideaD, all the Eastern
trunk lines and their auxilaries erie and Nickel
Plate and three C's notably, Canadian Pacific
in almost premier position. every one of the rail-
way equipment companies particularly New
York Air Brake) the New York tractions-tn
fact all the list where integrity of management
attends the splendid business expansion which.
regardless of speculative pessmisnl, our whole
country is enjoying.
In the rushing raids made upon the market
two stocks nave had special conspicuousness-