New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-08-26
The FInancia! World

no longer doubtaDie- Evidences Os cha,,..
tudes chow clearly Commission hou,. s'c
actions mount 20 figures not for a lo,x s'- asa,-
recorded. Par
Free and easy attacks confirm.
motives and methods of z u. Harr,r,s =,
the sources whence crOwtins crisle,z.~. 0l'
are hardly what may be regarded az 6.@-.s coma
eSemplars-the fact still looming shss zen Zen Ru.
spectators who believed they cO-IIF - :. 4asag
Mr Hartman Co disappoint st0ekFaiS.g r1aa
disturb the Street we're trapped aTd -s-frs ara
too implicit reliance UpOn what 4. I'd ~
phraseOIOsy IL scheduled az past -acstract
Mr. Hartman has simply disclosed b. = lea
pressioIlst gentlemen That even best esrabI.s =.
IL Is precisely true. as stated IN thi,
week ago: MI. HarrimanS relation - y
Paclhc as 10 per cent dividend r4vs- ts'oa
lively Insignificant beside the reIsfi~,s, = ssa
by national prosperity. This nav- M - ,or.s
rate comes out OF earnings rnas.-5,r,s - ce,.
than thar figure; earnings make ia o'ss.:
MI. harilnlash mas not made the earnir,.a.aa
earnings are made by the Vests use-e.-eas
good times 1-ohornAnA
But the explosive mOralIsts (esuzss
Guy 20 pleces) Will now have % face f,Irr-.- ne
dend Developments quite as couz-a,,s-.rs. Nv
Union Pacific and Southern PacfSe. "a n
long list OF other stOclzs-PennsvI,-a-fa y u a
son. Canadian Pacific, Missouri P7efs~' T H'ca''
VILE and hville-euuu1Arafi0 h, QUA
for u will bear reiteratiOn here that w.
tered now upon a national dividend a-,s 4
market manipulation having but sca7.fv s'es
WAtu increasing Gl5tftouLiOu Or 0rg4-z
holders. this increase becoming sesSaIiv' o'es-
pulsory BY the sheer force OF accuniUia. e'c'-
One effective element which ca, \.
upon in fUrtheFing market bettsruars t,,s".'
with results sure to follow the Operation :. -
recently enacted national rate law e-v,.r...as
sums hitherto by rebates diverted f~or1 7'os
treasures will forthwith augment avaflsb's "a, sE
dends far beyond any calculation yss eo -
hensive In the public mind. "''s-
Bearing fNfc nett -
IS direct importance In a letter which v.as.a-la
] had the opportunity 20 peFuse writes lay
OF the foremost railway managers OF tra -. ~, cls
20 security holder who had inqulr4S rs..
effect might be expected from Tie a-l.sa Ia
powers OF tile Inter-Stats COnmercs Scss-
stOns- Says that letter sCccinctly. srT1S.- - =
new law the items OF saving that can - -, -
be made by a strict adherence 10 es.ssis,s.ss
rates. treating all shippers and Institutes 49,,
extending favOritisEu % none win $50 -
southwestern lines alone what think can -
EualIy.' -.
There are figures extraordinary Th-~
sent what is nothing short OF revolution a.
railway finance. But they are figures r5ss. -
an extremist fn conservatism IagisIa.f1- -,
pected. opposed and denounced Is aI-as7v No..
ms. by the test OF results. whOlss0n.s. h.Iotf
productive.
The breadth and sturdy vigor OF tHs sA-,,,.,
market is tardy recognition OF the fo-ca a. s,r.,
The fsllacy OF many a bear arguu1z-. 4. a..
patent 90 even superficial Observation Cr9,.
VIII grow industries viii boom, railroads ~
pile up earnings. general trade win remain ROD
despite the puerile protests OF professional 80.
Strnlsn But there is still q bear PARTY ,os,s.r,
fighting the advance. Driven 20 the Iast 5lfo.
they now profess alarm over the mOuar s,-,,
ton, prOclaimings loudly that the verr ayls,a--,
or prosperity must cause such a demand so- IA
or 1unds IN the conduct OF the eOuntr5Ts hu,,.
ness as 70 make &c impossible for Wall s,-s4t b,
finance an advance movement There IS 10 war.
rant for such assumption. There can b ~ ro,
VentiOn Cnar the current Improvement IA. Deer
on speculative character. Even IN the high price,
issues. which have been the centre Os aesjo-
there has so far been siTnply approach to-ar.
actual asset value. This s. peculiarly t-ys al
Union Pacific and Southern Pacifo-tls MARIE:
leaders.
Apprehensions concerning IN. money maria,
are confined 20 bear operators-are not sna-.s
in by our bankers, who publicly and prfgarsv
the situation and confident OF the outlook Thsrs
is no expectation in any quarter that rr-sv
rates viii revert TO the low points OF two or -.z
years ago-fOr call money az per cent OF lsss
means business stagnatiOu, Is not a hea..,aa.
symptom. The present demand for funds -.a-s
that the country at large IS using surplus xsaI-A
in productive channels. As much as may bs
needed can be diverted TO Wall Street uses Win.
out a JOLT We are rich enough and s.-are
enough to finance our own affairs and even h--f
about the dreadful result OF putting our ssrusi.
ties up 20 what they ar, worth. There shsl.!
be no establishment az the present upward r,ov..
nent-the wonder OF IL Is that Il has been 50 lo,s
delayed
Throughout the earlier part OF the week. ths.s
being no show Of any effort to rush prices IT,
ward - conservatism forcing reaction-tas
oracUlar side &C Wall Street dubbed fGrious'v.
Strength so far shown was fictitious; logical re-
action was bound 90 sweep all gains away; 50
Inucn prosperity was IN the country that dis
turbance and disaster could be absolutely d.
pended upon Such senselessneSs would pro-
woke amusement outside OF Wall Street; bur On
sd ~rrf~1 r-Qrrr
new and nothing strange nOth-
ing but what could be recognized as quite q thu
ordinary. And traders who take large risks.
genuinely accepted such philosophy.
committed themselves in the market on the
theory of il. sold stocks short in the belief that
national prosperity meant national menace Anu
through the first half of tho week the force Q,
operations OF this sort was consequential enough
10 affect the course OF quotations. Outside q
sanatOriUm il would be difficult 20 measure e-s-
mentS and effects like these: bat such precisely
the New York Stock Exchange.
On Friday and Saturday the awakening Ea'
quick and thorough Spectators who had p5s-
flcteG and sambled upon money HlaIket s.s-'-
senCy which would force loan renewals az - o'
Is per cent over Sunday were confronted VIE
the disclosure that funds in ample volume 49,
available at per cent They found fault ta:Nsl
Of conspiracy. showed much excited aniulat!ol,
but facts ruled. shorts had to cover-quOta-ioas
rose easily, naturally.
Thus. in condensation. the entire seca.t
market situation is finally summaTizable ~ ~
old rule Of Mr.. jay Gould Theory Is very Pleas,
Ing; but. frequently it's exceedingly expensive
One OF the Incidents o. the week Is sDll,s-
advance In AtchiSOn shares. There IS talA g ~
advance in the fixed dividend rate, with possaF
an extra allowance. AtchisOn Is vel WoFl
any figure IL has touched. IL viii probably Sl'ss
10. But this AtchisOn movement merely siSe
des what may be expected of all the lnipolstss
properties IN the Southwest Rock ls-arS
but held back nv force And Missouri GGcl1r-
premier in all that territory-oUght 70 be sing
above all the rest. Instead Of the present -
rent there can he an : per cent declaratieN w.
within the revealed earnings Of the system
Net earning increases mount each month s'7
the five months 50 far reported this year t!afa-
ary TO May this is the comparative eSnloh.