New-York tribune., 1905-07-02
The Financial World. /


facts are not to be persistently ignored AL the
philosopbers were sure that we were In Cor sum-
ner whose dulness could only be relieved By Dis
turbance and depression. What actually develops
illustrates only once more how bad speculative
forecasts can be. The expansion and buoyancy
now showing have for foundation business con-
ditions which. the whole country over. are condi-
tions of prosperity Not merely are the railroads
with practical uniformity piling UP increases In
their earnings putting past records far into the
background. but practically every financial COM
rnerciaI and industrial interest keeps pacs with
this betterment which railway earnings -
graphically indicate.
Bear oracles have to go far abroad TO find any
excuse for their chronic pes5innisnL Especially
are our crop conditions inspiritins But what Is
| pre-eminentIy notable in making for confdsnce
| I'm Wall Street appears in the now recognized
pocy- of our railroads to distribute larger divf-
| dends to stockholders-a policy douoly warrant
| ed-warranted by the vast expansion in sssnins
! capacity warranted by the fact that finally our
foremost properties reach the point where extra
| ordinary betterment expenditures prevailing IN
| the past are no longer necessary assessrnsn,,
| upon current profits.
| We are just now starting upon fiscal year
which will be entitled to be remembered as The
| Increased Dividend Year"
| One particularly encouraging feature OF the
market centres in the quality Of the stocks which
are leading in the improvement II Is. as vas
| said here last week, inspiritlns 20 have this
leadership taken by stocks Of the quality Of
Pennsylvania and its auxilaries. like Baltimore
! and Ohio Reading and Norfolk and Western.
| In such leadership is ample evidence that
| investment more than speculation, figures And
| not merely in the betterment Of prices is this
/ In evidence
shows with striking significance as being fore
| most in leading to the level OF larger divi-
/ dend returns.
| Virtually all the sections Of the market whore
| investment issues predominate are following the
Pennsylvania lead. Toward the end Of the week
we have had exhibit Of the inherent strength
| which Erie issues have Fables in variety are
! in circulation to account for rising Erie quota
tons; some tales have it that the Lake Shore is
buying CONTROL other recitations deliver the
proDerty to Delaware and Hudson and yet other
concoctions represent that Mr.. Hartman ls
about to disclose a coup wherein Erie will be
delivered to Union Pacific interests Such re-
ports are not necessary to account for Erie
strength. Erie's market price is strong because
the Erie Railroad becomes strong. Broad ex-
pansion plans, long discussed, are finally ready
for execution; and they are Of consequence
which means revolution for Erie's fortune And
of primal irnportance-Erie is favored with a
management wherein intelligence and experience
and progressiveness combine to assure the pros
perity now unfolding AS Reading was rejuve-
mated so Erie is bound TO be. What Baer man
agement has done for Reading, Underwood man
agenent is doing for Erie.
At the close of this fiscal year nothing stands
out more prominently than southern develop
ment The conservative Manufacturers Record
reports that between 300 and 400 miles OF ne"
track have been laid. with $500 miles now IN
der construction and that at least lr1oo miles
more will be built by roads recently chartered
while several thousand additional miles are un-
der contemplation and most of 1t viii sooner or
later be built Herein is valid and concrete tes-
t1mony to actual expansion full Of meaning In
this connection the professed disappointment OF
the hear party because Louisville and Nashville
did not increase it's dividend this week becomes
ridiculous. The per cent which Louisv1ls Is
paying to shareholders yields at current market
quotations something over per cent net which
is an entirely satisfactory return. But this POSI-
ton of Louisville is merely tentative Transac-
>tions are progressing involving Louisville and
Nashville and Atlantic Coast Line which upon
maturity-practicalIy assured-will show far
reaching developments for both systems Of unex-
pected dimensions The fact OF southern pros
perity cannot be gainsaid and this is potent
factor in the upbuilding OF the security market
situation. Atlantic Coast Line is a worthy
leader and it's stock prime investment bargain.
Dividend increase is close.
Coincident with our own southern and south
western development is Mexican growth. With
an established stable currency system and with
the aid of American capital and constructive
genius industrial Mexico is forging to the front
with rapid strides Those Mexican railroads
which are dealt in the New IVrk Stock Ex-
change are all reporting prosperous condttions
which rival the record of our own sySterns-ahd
when it comes to earnings figures of fnsptriting
character are presented. These conditions, coin
cident with extraordinary Canadian prosperity
on our northern frontier, prove that the merely
artificial boundary lines existing on this CONT
nent are ineffective against the laws or nature.
Our own progression compels Canadian and
Mexican growth by sheer assimilation verifying
continental expansion.
In all probability we will have early inforna-
tion of the conclusion of important plans AFFECT
ing MANY parts of the market-favorable effect
Canadian Pacific and it's 500 auxiliary are 10 90
some inspiriting things In the local traction
securities II is not impossible moreover, that We
may have disclosures expanding confidence
One development will have TO do with the atti-
! tude of Standard Oil interests toward the mar
ket: and it can be relied upon that this attitude
will be found favorable-and that more tnan
passively In this connection IL may be dis
closed that large investments have this Spring
been made by certain standard GU nnanciers IN
some of the conspicuous independent railroads
OF the West-Wisconsin Central. for example
and Kansas City Southern. Wisconsin Central
development plans on a broad gauge. Re
cent current activity in the stock is attributable
/ largely to an increase OF holdings upon the part
J OF certain interests which are classed as
insiders