New-York tribune., 1906-09-02
The Financial World.

ginning Of this week. Sensational forecasts C
the PhiladeIphia trust company collapse had the
effect OF frightening Wall Street pretty thor
oughly: and the quick result was shown IN large
sales Of securities for the short account Yef-
measured by such actual facts are 50 far dis
closed the financial world had larger scare
than was warranted. There was, in fact, in this
Philadelphia incident not one thing funda-
mentally touching the stock market, OF naturally
entitled to exert depressing influence upon H.
still We had the reaction much besought.
And all the sensitive souls in the financial world
hurried out Of new commitments
Net results do not however. discover aught
which bear elements in the market viii care q
acclaim Quotations fell somewhat, but they seil
only briefly. Changes for the week are more
largely advances than declines.
ActuaHy-it becomes 70 look 90 if national
prosperity is something else than dangerous.
Wall street makes history rapidly-history Of
agreeable character Railroad after railroad. IN
drstrial after industrial. falls into line dis
tributer OF profits shareholders in faithful ac-
compIishrnent of that trustesship which has be-
come known as the American policy. Owners Of
securities who during the last decade have now
and then been inclined 70 grumhls because OF
the small percentage OF dividends 20 earnings
become now satisfied. It is plain that the huge
+ appropriations for bettcrments which have been
, charged against surplus accounts have been
wisely charged. American railroads. with scarce
an exception have az a result Of this policy been
brought to a standard Of physical excellence
never before aDproac hed. permitting an economy
Of operation which from will swell net
results And this IS equally true Of the great
industrial corporations. as empnaticaiiy SHOWN
IN the reports Of the United SLates SIsa CO0-
quite recently came the increase Of Union
Pacidc's dividend 10 10 per cent accompanied
ITEfI m EaQFlL
placing that road Oh a per cent basis, Inere
mas been some disposition 10 cTlucise these CO.
incident declarations as theatrical There Is n"
i warrant for this The dl-'E---=5s pS'd are the
logical sequence Of the Hsses-;. A@@ainlsLrailon
. ~ tre companies = 49, pass The great I'M
poItauce fyIns In theis -ssumOny TO the n
. GegviJy of railroad management
Times have changed since railroad manage
Went looked More 10 the speculative arena or
Wall Street than TO the administration OF the
roads in the interests Of those who owned them
new toHcep lion Of duty mas arisen ana WITH X
comes ample recognition of Official responsibility.
Shareholders at home and abroad must be con-
vinCed that tEc executive officers Of to-day have
/ The single aim in view Of making their property
productive and profitable. The occasional dis
closure here and there Of contrary conduc,
/ simply furnishes the exceptions which prove the
rule. From a broad POINT OF view the admin
| istrative policy II American corporations is on
a road which still hnds it sxpsdient 20 divert
earnings 70 betterments - Erie It's statement
FOR the fiscal year endin5 June 80. 1905. shows
that about s@t1r.ot9 Of The companys income
Was used Tor further Improvement Of the prop
eIty, increase of S56o.0Jg over The previous
( !edT- had these extraordinary appropriation
nor have been made Eria's surplus would hav-
exceeded s2.50a.eag. OF more thau 2is per cent
upon tue common St0ch. Ine nee sSIty OF sucn
appropriations ny Erie must diminish from now
OH The company is now better prepared i0
handle q largely Increased business than ever
/ before II us history
AL known Developments ara the prospects,
T side Crcp results arc assured for the year in
dus:TiaI expansion meets no check raiIFoaf
P 1f,v fr-fV-
could Lot be in better shape. Were thes= n".
me COrtTcIl4HS iaCt st!Cu startling incident
the failure Of rL- r az Estate Trust COnlDarv O.
philadelphia would have been severe sh0r.l o.
. the Iuarh-t- But a tier Of fact the s@Hrt-
Eienta. Decline ~hich followed snn0uncsr=c.
r. .tt1n came that This. Incident was but one o.
those iaraHtabie Ca=s= wHich the r-ost eff-crivri
restrictions cannot prevent and N wise due t1l
Weakening Of conditions. Nor was there ever
any tnportaHt faiiCre winch had rcore reTuO--
. connections with the security UldTSet--Jna loans
rf rho failed concern wholly devoted to the pro-.
potion Sf "on-1- rciaI and real estate enter
rrises- These facts we're quickly recognized
bat fG- moral 70 be drawn u that had our seCur-
iiN me- k-i been upon an UUS1ucd basis r1e mere
news "f the failure would have rrsctrf-arsd col
lapse As matter Of fact. the incident u5ss-5 |
with ~ear'sjy -inTie in the speculative sea
Advised owners "f securit-s will appreciate rhe
wholesoInenesS and the proft produced through
The new situation which has come with the
operation ~ the national rate law. The state
ment that % The railways Of the Southwss-
alone there Is assured through this new law q
CIe1r gain OF S2ltsst tse-SO much OffSettinz
former rebate w,iste-betok-ns what tEIoushogt#
the country the realization must be. The figures
which I then u.:1trG are rp- T4utaSVfC~f ara rs-
apart from EuessvoTk-are this careful estimate
OF one Of ~" most Conservative practical raU
way managers 81 the country. q man at LSe head E.
OF one os the foremost great sy~teuIs-ar.d his
figures may be- REGARDED IldereSLraLe tel
rather than exaggerated. AT 11St winter a-I E
throughout the sprirg Wall Street worried an. .
tried To have all The rest q the country vOFry. 4
Over the theory that President R0OSave!ts rat
regulation proposals EoUld signify dfsastc~. 7
hcIlthful - hea- from the Of rail q
wav managers of highest conseIU IUeESe-frJrr s.
sources Con"iusiv"-tHlt instead Of trouble AID g.
assessment. the Congressional eUsltr1eu- Is help =
fII. even 70 10 uoi1r ~ assuring dividend
pausion-
In the course NJ the current market develop
ment Union Pacific Southern Parir- AMI S.
Paul continue To have especial couspfcuousness
In all n them re hear contingent has teooI1s-
eutaugIed. are sQuirrins. making arduous er
deavor get out and get even But evidence
a-a rudufF.It that ths dear already some
what disclosed is still entitled 10 e4ectiv-
SsCr-.' 'S During tfe coming Week-VerLaus on
TuesdJy-a consequential announcement may b.
forte ming
AtChiSou stays stroug-has not vet crossed 10
predicted here. but Is 20 make the cross
ing A;chisOu has splendid asset that tO1 =
no. show on its balance sheets They who SfaIE
for il in Wall Street are men ot integrity. AncF
how 10 keep faith, not intent forever upon
despOilInx tteir following. From the d1y of IL
reOg z4nizatiOn there has been in Atch1son con-
rinually the practice Of the square deal
That Atchison Is cheap at its going price oelng
indtsDutabie. Missouri Pacific Gin similar South-
western territory becomes exceptionally At
traCtive The Missouri Pacific system c+rrleS
MORTGAGE bonds OF S}1 .ONO per mile, ArchtSon
funded debt passes S54ovp per H'lle. 4l,-.>''