New-York tribune., 1906-06-17
The financial World.

sions somewhat general and pronounced S+oce.
which clique operations on the bun side hs-.
recently dominated come in for especial B-s-,,
ure stocks like Reading and Union Pacs.
winch rom day to day Throughout the wsak
have fallen lower and lower
The Street has been filed with r74r,ors
Of them grotesque. all Of them tending IN 80
market values downward We hear rqgcb te,..
the approach Of tighter money conditions. -
IS vast deal Of crop damage stuf ana
sense In circulation and on every hand il a.
Ieit OF statement and insinuation frteodaa =.
help bear gning along That .h.-.
substantial declines in the narke, is -
these circumstances. not at all a -,a--s- .
surprise. 9"
But as has been many times recently. .nof,...
OUT IN this review what actually inra-fs-.-
"i'Ii normal ouoyancy IN our market IS The So.
that the public is holding aloof rha+ -
ers are not 10 be sound in brozaras.
That the phenomenal prosperity Of 49, -
Is onset oy the two deterrent far.9~s -
tTdVasant abundance IN the issue ~ ,
curl1es and the disturbance 20 ser-f-eer-
ated oy the fashionableuess Of corDora.io- :.
qulsltions-alegations and r-veiats1nu a..
together OF actual great serious .,--.--
inquiries there are disclosed --rsrr,aT,-
but public sentiment has for soma -,
seemed not much intent upon sisc-f77iT.-ta-
anu net results are Tor the present in TOO nsps
quarters Oppressive.
Yet, as one Of the cIearest headed s-,s.
the financial market yesterday f1-,,s-as -
Is there disclosure OF anything which :, -
alarnlns-really threatening The stanisrv !,
values?
That there is an extended short f,ta-..- ..
Ihe market shows in many WAYS. II is we'll a.
trtbuted. too Few conspicuous stocks 60.
- rim
IT is largely because OF this manner -
paigning that quotations have so pars-,rr
corded recessions. Coinciderrv. r,os- 80 =
takers OF the Street are b-ars-Taosr ~ ~.
oracIes committed to speculative accounts vrbcL
must later call for covering orders.
OF actual liquidation by investors tiara an
pears scant evidence anywhere.
Among current important financial dsvslo,-
ments is that which looks 20 the rshabili,ate,
OF the Wabash system. Careful Considerable
OF the situation has resulted in the f,-n.,t,.
OF plan for the issuance OF 5000 O0g bo,s,
under a general mortgage covering The s,.,:
properly, these bonds TO take up 11nFarlvsrs
ISSUES TO make the plan successful the con-
sent must be had Of the d-5-r-r1re n hoDs
hoIders. and there IS little doubt thar his con-
sent VIII be attained such aupasirio7 au a.
pears. representing an old antagonfstic rninsrffv
1est' IS not IlSely 70 prove largely obstructive
IN view OF the fact that the financial and ~ -
pan Is under the conservative direction of VIII
IAN A Read and Blair & Co-sufHcart guaran-
tee Of responsibility
A comprehensive operation Of this character
VIII provide the Wabash system with ability
70 carry out The many improvements hitherto
delayed. ana should result in pIaeins the corn
panys various bond and stock issues in a much
jOyed-
another bond issue OF which there IS talk is
one which may be made by the United STATES
Steel Corporation. the proceeds 10 be- arDIi4d to-
the building OF its great new plant ar C4arv In
diana CuriousIy enough this Srrzras-i-r has
been construed by prOfessionaI Wall Street aq a
reason Tor selling short the Steel stocEs-both
issues showing conspicuous 1saviuess There
could be but one meaning OF such a bond issue
tnat instead or using the vast accumulated sur
plus. which by tEle end of this month viii an
proXinaIe SlOO0OOOt0, for the building % tbs
new plant II would be TO some extent disbursAd
IN the shape OF resumed dividends on The COM
mon stock Put. bond issue or no bond issue
the Steel Corporation is in the very strongest
position. Assume that it does not issue new
bOnds-its surplus would pay for the whole Gary
plant, which II is estimated VIII COST about S75-
COCOON. and still leave about So 014 t00 on
hand. And II is 70 be borne in mind thag this
surplus is growing qUan-icy-added 20 every
day And that ir must continue 10 grow for
long time Is assured by J1e enormous volume
OF orders on hand-over 7000oo0 rons-crowd-
ing the productive capacity Of every plant
which the corporation owns or controls This
is just why the vast new plant is built There
is more business than can be az present han
died
tty in the steel business is a certainty. Not
only IS home consumption steadily growing with
population but foreign trade Increases all me
time. Furthermore. steel is being puU 70 many
uses unknown in previous times notably n
course. in the construction OF buildings Ihs
United States Steel Corporation is ne greatest
business success ever known In ulasniaae y
surpasses any other corporation IN pro1ueuoI
IL is without anything Ike rival rs financial
management is a triumph 0f brilliant ability
under the leadership o. business guides Ahe
Ebert n. Gary and George w Perkins. A.ts
criticasters OF Wall Street who sneer AZ tns
tremendous monument Of American genius anI
deem IL asIute 70 go short Of Steel stocks a. any
and ali times, rall 70 CoTnpr7r END Wlil ll7 V0I
pany'S progress and progreSs-Ve77ss mean Il
is not SO long ago thar these ar---5s were pr
dieting that the preferred sJocs could not PCS
sibly pay a per cent dividend u IS not -
long ago that predictions we've Freely cuIrSVS
that the preferred stock conversion pah VIZ
its tremendous saving Of charges, must ov
failure How stands the recrr1' Ihe uS ~
malignant critic does not now v--ture 20 GiL
else the integrity Of the pre------ GiVldeho' -
the success OF the conversion -l.0 is o nas-sr
of history. And earnings have Piled up ~.
a surplus IS established whiro woutd auls- -
justify the immediate Resumption oi c9-'- -
dividends should such policy a- -eeI'e~ -
When resumed u VIII be upon q 0srrlaasI- ~
sis. and any candid inquirer must come ~ p--s -
conclusion that these Steel stocks are WIZ
more than they are selling for
The local traction stocks have been kept es
pecially under pressure rhrouE1ou- me 5ss
The fact that there has seemed o. be- @ lll,-.- la-
order in InteroorouSh-Me Metro2 -.,-H c.u-Sirr cui
stock NJ ~ has been challeura ''fF s---,oR
TO the bear campaigners. They nave ial. i1
ana jammed in that quarter Nalcrous9 s,-.
day. but with uniform fai ure. 10 1IV'Nb
Rapid Transit their he2dway was more essss
stantal there being a decline ot . 2o-lS .s,t
IN that stock This particular aear Hev -
has been popularity credited Oh Nf o-r-
though his friends insist that 1Far r0i'-i-1f- NJ
gers are taking liberties with bis name
Keene for more than q year uasr 1as - SINJs
dad eTO baiia n