New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-17
The Financial World.


who were skeptieal holding aloof. ana pross..
siona1 traders who not only were unsympathsn.
but actually adverse join now In hurrahs eal.'
bratfng the markets expansion. They WIN a.
good nowhere year ago or even few vesL.
ago can now sec only good everywhere We
pfoach the old rule of the swinging penc1Iur.-
never touching low point but on its wav "A
higher, and from every high point recedinr a.
ways-stilI on the way, TO be sure, to new h..A
record repetition. So the philosophy Of an
servers who are Wall Street veterans Copans,
sion house transactions are larger than thu.
have been for a long time. Yet nowhere do th...
seem to be excessive. Important firms state +.
deed, that Increased business does not va .
enlarge transactions as to make collateral To-
demands abnormal And this is one Of ths 49,
Of market strength. OF still greater fundament.,
market consequence Is the fact that in vs-s
large proportion the stocks which now advancs
the most held by interests which carrsss
them and owned them tens Of points bsio~
where now market value has quotation-s1cb, 4,
terests being wholly Independent. therefore ~
temporary variation in market figures Taks
Tennessee Coal for example. That stock bss
reached now a price far and away beyond VIA.
showing of earnings and even fair discount ~
prospect can warrant. On a basis Of ordfn.ss-
measurement IL Is high enough To rnaks -
chases dangerous. to invite short sales; but fhsv
who are owners Of the great volume Of stoeE
figure was so and so points lower. Such hods@s
can be careless of usual market appraisemenfs
OF deals" through which may come added valus
not calculable by outsiders. Tennessee Coal l.
not isolated instance. 1t would be easy IA
list score similarly situated-represented hv
conspicuous issues like Shelters ard Araalra
mated among industrials, by abundant railroad
instances, too.
There is reason for redeclaration OF the sts.A
ment made and in this review-thsf
only in exceptional cases can It be safe for
outside buyers to ignore discoverable intrinzs
value Any property worthy Of investment con
sideration has earning CAPACITY and fraas,-,
asset value plairIy of record. Where there IE q
different exhibit there is danger. Wall Strast
mysteries are capitalized risks. That's VIVA.
makes AmalganLIted Copper a market menace
what warrants avoidance Of Sugar Trust bv
reasonable investors These are the days Al
open accounting-and where there is variation
from the rule Of Candor and explcitness thar
coincidently is warning.
1t has been the insistence Of this review TIA,
in market value accounting there can BE- no
better guide than dividends in operation Or
fairly in prospect. There is no lack Of profit
able investment opportunity. In the Stock
Exchange list abundant bargains, attessd
by dividend easIIrement-including Iudustrisls
like Peoples Gas. with its long record Of n7
cent returns, like International Paper prefs7sd
in the SOS. with never variation from ius
per cent payments; like Distillers' Securitis.
yielding per cert; like United States Reduc.
already established-while. also. on the LIST
are others like Central Leather (now ab-
sorbing American Hide and Leather, and
National Lead, Just now coming into new
situation which be counted upon to assure
returns unprecedented by any past ACCOMPLISH
ment. Just take National Lead for exemplihca-
tion of developing value in properties Of new
status National Lead finally gains virtual
trade monopoly During recent years 1t has
been confronted by an aggressive intelligent
competitiOn-United Lead having for its man
ager an exceptionally forceful. progressive ex-
perienced expert whose policy succeeded In
dividing public 2atronage-United Leads capt
tai stock forthwith making dividend showtngs.
Now comes consolidation, unihcatton OF inter
est, deliverance from competitive sacrifices, with
the larger profits which concentrated manage
ment assures. Further made possible Is the
elimination (as phenomenally shown in the
thracite trade) of rniddlenen, sales agents and
the hke-an actual saving to the manufactures
of a full 25 per cent. What this signifies In
net profits cannot be readily estimated. 1t viii
be equal" so states a conservative trade author
fly, "to a 10 per cent annual dividend upl
the total capital stock Of the lead company"
Development like this displaceS al the ol
calculations as to market value. 1t Is revolt
ton. Traders upon the Stock Exchange have
all naturally failed to comprehend the changing
situation. Used TO seeing National Lead STOCK
kicked around 81 insignificant hgures. ley
have heavily sold short at it's advance This
develops exceptional market position Ma
tional Lead stock is virtually cornered. Upon
what regard as wholly Trustworthy autnotlS;
it is stated that the Messrs. Guggenhem ana
associates, including Thomas F. Ryan, and
counting options obtained through a New York
Philadelphia firm, hold now stock ceruneatss
and contracts for delivery aggregaGng approx
mately $1,000 shares more National Lead COM
mon stock than has been issued. This. OF course,
preludes one or two observation-disclosures sell
tl~nent or open punishment in the market; ana
it becomes easier to understand why in some
important quarters there has developed so muen
Lead Trust market confidence
Encouragement for progressiveness shows IN
practically every business quarter. Take rail-
way earnings for a barometer-in virtual uni-
formity they attest national prosperity-not OIL
maintaining increases over former years p.
actually further expanding continually. ExcHss
for doubt or nervousness or anxiety there
none-a normal American security market
simply bound to be market buoyant
One incident OF the week may be fallen upon
by critics as text for pessiInism-Rock Island
Company preferred dividends suspended. Judged
specifically, this seems serious enough to war
rant general distrustfulness as TO tne gsls as
railway situation. What actually II Represents
is not dispiriting. The Rock Island system,
now grown to the tremendous nagnituas =
$4,000 miles-requires vast expenditure ~
physical Improvement Rock Island 70 applose"
New York Central capability demands vast e.
penditure. And just such progressiveness hoss
Islands controllers propose-tens+ OF fnlIhons
dollars to be expended for the establishment =
the physical superiority of the property. Mean
while Mr.. Reid, Mr.. Moore and Mr.. foahGs
show confidence in their power Of acconpiSl,
ment, confidence in the intrinsic streng1 "a "a
Rock Island. by calmly foregoing DIVIDENDS uHA
finally there is triumph for conservatism
A modern phenomenon is the copper trade e
velopment, the metal commanding record-oreAA
ing price. This means prosperity for every eo4
servatiVely managed producing properly p
plains the buoyancy in Amalgamateo. WaTraAS
the confidence OF Mr.. Rogers and Mr. RoeAs.
Teller in the development of new indepenus-
properties like their Nevada Utah Comps%s
Just brought out upon the Wall Street CuTo sn'
linz ut has fa-f fyFsr7ar rNnr