New-York tribune., 1906-11-04
The Financial World.

i throughout the country. The report of tho cor
| poration for the third quarter OF the year 10 Q
splendid exhibit. Summer is the duIlest time
i IN the steel business. and yet for the quarter
under consideration net earnings were piled uo
\ IN excess OF S3sOOOOOo. far surprising any
corresponding period. and close to TOP record for
any other quarter.
Examination OF what Ia done with this great
sum is Instructive. First. appropriations
/ these providing mainly for depreciation and re-
j serve funds Then approximately sl,OOHOoo 10
Then nearly SSOOoooo for pre- pretsrred and con-
mon dividends This still leaves free surplus
Of sl4.7OoO0o On the face Of IT, this sntirs
sum would he applicabls TO common dividendsi
| but further Extraordinary appropriation Of
Sl1OtDOsO Is made for additional property"--
adding TO assets. constructing earning
power-an out OF current earnings. This AZ
fects common stock dividends-postpones rhs
normal rate a while-but for ultimate and lass-
ing effect. what Is the result? Even the utmost
conservative can but applaud.
The dividend on ths common stock Is NOT at
once increased-remains on the basis Of per
cent. per annunn: but these figures under anaIy-
sis show that the stock could actually rscstve
at least 10 per cent per annum. and stiu leave
comfortable margin for surplus. Whan the
predestined increase does come IL VIII be salts
factory IN every way TO every man who is .
shareholder.
1t may be remembered that there was semi
oHiclal authority year ago for tho
statement that common dividends would not bs
resumed until = surplus Of hundred millions
mas been accumulated The present surplus Is
81, sy1UVooYD after payments on The common
I
payments putting tina total beyond the hundred
millions The United States Steel Corporation
keeps falth-the policy OF j. Pierpont Morgan,
umphantiy vfndfcated.
Marvellous is the steel trade revolution since
the formation OK the Corporation. BY no
means a monopoly II yet exerts a Commanding
influence. and exeTts IL wisely There Is no at
tempt TO crush out rivals independent COM
Ianies receive friendly treatment and are get
ting their full share OF business. INTRODUCTION
of modern methods az manufacture economy OF
and tNtelltZent 70 fha
laws OF supply and demand have rescued the
concerning which Andrew Carnegie coined his
pat phrase, prince or pauper" And the happy
Snahse comes at a time wnen America IS stur-
greatest branch OF industry.
Recent acquisition by the steel company Of
Great Northerns ore lands gives IL mastery os
the situation for more than another generafton
II ~ thls transaction, as in all others. the United
20 pubic interests. exerts NJ sinister influence
anywhere. IL conducts its vast affairs as sim
Ply, as modesty, as honestly. as IL Il were the
smallest or individual plants
And. as In the Industrial world this maguin-
cent development shows. so. in the railway
world Pennsylvania brilliantly asserts leader
snip. The Pennsylvania dividend is advanced
70 per cent Examination OF PeunsyIvania's
reports reveals that for number OF years past
from S12,OO0OOO to S15OOOONO per annur have
oeen taken directly from earnings and devoted
70 CONSTRUCTION and improvements. Even after
sucn arbitrary appropriations the surplus es-
taolished Is fully equivalent to 10 per cent divf-
GenGS % as on the stock-hence. this per cent basis
- IN the hlghest degree conservative And
ir pennsylvania with its present revenues can
make such showing-its Disbursements in
CIud!hs vast capital and interest for the new New
York terrninals-what will il show when thoss
terminals are completed and It Is enjoying the
enhanced revenues certain TO follow?
Pennsylvania progress epitonnizes national
progress The road was incorporated sixty
years ago II began paying dividends Atty
years ago. and such payment has never been
interrupted The first payment in 1856 called
Tor for per cent on s11,o00OOO capital The pres
0ar7r 1Io e.
100000 capital Eloquent figures
With the election out of tn, way the nat
ural forces OF prosperity should find free play
Sound railroads. exsmpIihed by PennsyIva-
ma; ana sound industrials, exemplided BY
.,a United states Steel will find delayed invest
ment confidence awakened
The outburst OF Wall Street interest IN mining
properties does not abate. but expands. and that
largely. Conservative Stock Exchange houses
originally disinclined 20 recognize this feature
IN current market affairs are finally realizing
that the development is something else than a
spasIn, mas substance in il, shows signs OF
rounding out into a robustness that nobod,- can
Ignore. OF course. we have evidence Of nlanipu-
iauon ln the mining activities We witness
Ihgi put what Is equally clear is that public in
terest has been awakened. that there is already
established an actual ready market for mining
seCqrlIles' participated In openly and sUbstan-
TALLY by the general public. 1t Is no longer to
De debated whether or not mining securities can
command popularity; the issue resolves itself
now into whether or not the buying public buvs
sensi6ly. safely. Agencies are energeticaIIy
working to unload masses of wOrthlessness:
Wall Street is jammed with representation SooI
ish and false. But we have in evidence exau1-
pies abundant Of tested properties prodI1cers--
such properties as may be fairly counted upon
for large and lasting dividend yield In this
group distinction belongs, OF course TO those
which are underwrttten by managers and con-
trolers who are men Of character. This dis
ttnction. as an illustration. attaches to the
shares Of the Mitchell Mining Company the pre-
nter copper producer OF the Southwest and
Mexico. With a capitalization of S7,5OOOOO the
Ailtcnells Mexican properties alone have al
ready IN sight-actually blocked Out-ore values
surprising S75OOOO0O, while the properties re-
Gently acquired in the United States are rro-
ducing upon large scale. 10 is upOn urODerttes
such as this that the investor can best count
FOR the reaptng Of big early profts-the phenoln-
email richness OF the Companys mines SuppIe-
mented and sefeguarded by the integrity of a
veteran, practical. honorable engineer like
George Mitchell
Comparable with the Mitchell properties ara
those OF the Nevada Utah. with whose manage
ment are Identified some of the strongest high
class financial interests known to Wall Street
There are cool headed eStimators familiar v-ifb
the Nevada Utah's richness who confidently
forecast 80 per cent. annual dividends United
states Senator Clark characterizes this prom
erty as "Nevada's amazing bonanza q" And sen
ator Clark Is building railroad directly into
the property
copper metal in demand beyond supply at al
most double the price where il ruled barely a wear
ago. naturally enough warrants the enthusiasm
OF investors in and out of Wall Street But COP
per oy no means nonopolizes confident attention.
SilVerS new status eXertS investment influence
the phenomenal rise in Nipissing stock attest
ing the readiness OF public appreciation Minis
sing scarce now above so where it was abun-
oant at or only a month two ago And
the record Of gold producing properties Is sim
harly inspirtting Take for example. Colorado's
important property the Old Hundred group.
where extraordinary results are achieved Iden-
Hundred are a ligfz v-I,rN can