New-York tribune., 1905-07-09
The Financial World.

for disclosed developments In the business
world Il is shown now that while Guotatior7
lately were under pressure. and while all tAs
philosophers were sure that a summertime of
auietude IL not OF retrogression, was at hand,
there was continual aggressive and concerted
work under way for the betterment of the
financial worlds underlying conditions. More
specifically this will be shown by Official an
nouncements. Of which only here and there
hints now may be occasionally heard The re-
turn Of MI Morgan from Europe. with the
coincident arrival OF James J. Hil.. wiz be an
event preliminary to m-ch that Is 70 be In
spiriting.
What IS above other things clear. heaIthfUi
and helpful is the wholesome fact tina, present
activity is directly traceable to investment a5-
sorption. and this activity in those classes OF
securities whose distinction is merit
Only one effective bolt was shot at the mar
ket during the whole week--and the effect OF
that was relatively trtfing and but temporary.
1t had 10 do with the Equitable-was a circum-
stantial specific, unequivOcal declaration that
Mr.. Cleveland. disheartened. had thrown up his
hands. and would have nothing more to do with
the company's affairs. had found tine problem
impossible OF solution. legal obstacles foFbidding
success of any effort he and his confreres could
make-in short that Mr.. Cleveland ready
to announce desertion OF sinking ship. In Wall
Street brokerage Offices no other topic of the
day compared with this Some sensitive inter
ests were appalled, many stocKs were sofd-the
great volume OF selling. however. being for the
account OF the professional contingent alert for
any excuse to raid the market recognizing IN the
apparently straightforward announcement Of
Mr.. Cleveland's retreat what they believed must
be certainly construed by investment interests
as actually public calamity. That under these
circumstances the market should suddenly halt
that quotations should yield. that bear hopes
should rise high could be construed as sequel
only natural.
Then there came from Grover Cleveland this
clean cut statement:
Nothing has occurred thus far to dissatisfy me
In the least. and the idea OF retiring from the
trusteeshtp has never entered my mind
Declaration more explicit could not be. II
was as a gust OF fresh air. Confidence every
where was animated. spontaneously the market
made recovery. Preparation Of the roorbaclz
worked actual good. Not only does Mr. Cleve-
land maintain the stand he has taken but hnd-
ing nothing to discourage the upbuilding plans
to which he is devoted. he counts confidently
upon the prompt, successful accomplishment OF
the high public service he has undertaken
What disposal of this canard incident can have
unimportant compared with it's significance for
the Equitable itself-for that host OF policy
holders who amply, enthusiastically recognizs
in the Cleveland O'Brien- Westinghouse trustee
ship safeguard incompatible.
An illustrative feature OF current security
market transactions is found in the course OF
Reading. The mere fact that Reading common
has become per cent. dividend payer does NOT
account for the new price which promises 70 bs
still further bettered, upon knowledge that
Reading earnings reveal net returns of at least
10 per cent--some estimates going as high as
ii per cent No financial rehabilitation was ever
more complete than that of the Reading
monument TO the reconstructive genius of j.
Pierpont Morsan-and testifying to the wise
investment foresightedness OF PennsyIvania and
Lake Shore
There looms into prominence another Read
ing'-I refer to Erie. Here too steady growth
of earnings under superb management begins to
tell. we'll warranting the accumulation OF Eris
securities in great blocks by prominent invest
ment interests Whether there is buying for
control for other systems is not revealed and IL
not controlling-for just simple merit Erie
shares will continue to be absorbed
Reading and Erie advancing logically from
bargain counter prices. serve as indices Of that
railway world. AS Pennsylvania Is accorded
leadership the other prime properties OF the
country move in prosperous concert. New York
Central and the junior Vanderbnts will not
stay long in the market background. so i'm
portant is progressiveness in that particular
quarter. At the South. Mexican Central waits
only for the signal 70 reach higher market
values than recently known, exceptional is
the new status of the system And at the North.
Canadian Pacific prepares for new stalwart
strides. Popularity the notion seems TO prevail
that Canadian Pacific has S110OOO.OO0 outstand-
ing stOck-an over estimate of $4,000 600 still in
the treasury-and not unlikely TO be made
the basis of advantageous rights" Canadian
Pacifc's friends in London are showing new en-
thusiasm- They apparently have knowledge OF
plans not yet disclosed here. and heavy pur-
chase of stock in this market for foreign ac-
count is probably traeeable to the inspiration
Of what has been divulged TO related British
banking interests. London will be disappointed
if Canadian Pacific fails TO cross 1GO on it's
present movement.
Progress is made in Atlantic Coast Lins
plans. and Mr.. J. Pierpont Morgan's return from
abroad may make early official announcement
practicable-ap announcement which will be
pleasing 20 the propertys investors.
Our prOspering railroads reflect conditions also
found governing standard industrials. ImpOr-
tant developments are about to appear In tbs
United States Steel Corporation. President
Corey's return this week from Europe is To be
followed by important sequels. Earnings reflect
hood-tide prosperity, are on scale compelling
belief in the restoration OF dividends upon the