New-York tribune., 1906-04-01
The Financial World.

direction. IL has been difficult to find much fs.-
lowshIp for eonfdence, Each day has brought
It's quota Of prosperity; but as answer to every
sign of betterment has been offered the ex-
hibit of spectators selling stocks not owned
the position taken by the talent OF the Stock
Exchange being briefly this: Conditions ara
so good. prosperity il evident. business ex-
pansiOn assertive that things Just can't bs
bettsr-ergO must be worse.
Yet the weeks quotation record does not
swing with this mental queerness-far more
than majority Of net price changes are ad-
can't The public is not fooled Actual owners
of securities neither scared nor catOied into
selling out; and tremendous short interest
showing now In the market VIII nave 70 re-
cover it's commitments elsewhere than through
the publlc's liquidation. Coal strike bugaboos
failures most fOrlorn.
AS has been much urged in this review. tbs
list is long of well managed railways whose low
priced shares. under developing conditions.
destined to reach materially better figures. COI-
orado Southern. Iowa Central. Toledo. St Louis
and western-the Edwin Hawley gTOup-are con-
spicuous in this list. the market not yet fairly
rejecting the intrinsic values OF any OF them.
Denver and Rio Grande IS another Of the surs
bargains and Southern Railway has deserved
prominence in the group
or other low priced railway shares Rock
Island starts finally under attractive auspices.
How the wonder work OF the present regina
tells is indicated somewhat In the current official
statement, showing for single month an N
crease of 81 .1SJOGO IN gross earnings and $3.50
coo in net. Prophets who have been declaring
that three years must pass before preferred
stock dividends can be resumed, VIII have to
revise their forecasts Under 3. T. YOal0ums
concentrated management Rock Island becomes
now the cheapest OF the shares OF Southwestern
similarly IN the group OF Eastern trunk lines
Erie becomes cheapest-the promising larg-
est percentage OF profit for the investor. Erts
common is on It's way 70 dividends. Deals ara
not needed TO assure this-an accomplishment
which but a little while ago would have seemed
almost in the miracle class. Good management
liberal, upbuiIding administration, offers ample
explanation for the revolution establishing new
Erie-Fredericl< D. Underwood in practical ef-
fective management revealed as the James j.
Hill of the East. IL Is difficult 10 learn de-
tails OF Erie plans it IS Of Great Northern's-
Underwood taciturn as Hill forever IS; bus
such records signify as. Incidentally, the item OF
a months increase of over SSJGOOO In gross
earnings with net qHadrupled- Erie common
dividends are not idle expectation
vying with the railway issues in activity. and
in strength as we'll the Industrial list has bar
gains, too in plenty. What is notable as a new
DEVELOPMENT in that quarter appears In the evil
dence of wider distribution OF ownership Pub
lie absorption shows plainly.
Railway equipment shares, metal, mineral and
smelling issues. electrical stocks-ths entire
round of such as are trade barOmeters-coms
into public favor Critics abundant have OBJ
jected; but plain naturalness is responsible We
have reached the healthful point in industrial
finance where trust stocks are no longer mers
toys for stock jObbery; they established ss
standing for the honest net results Of American
business management. the best business man
agement in the world management that con-
joins the brOadest productive expansion with
the strictest policies of prOft-prOductns econ
omy Aptly illustrative is the accomplishment
of Grant Hugh Brown and his associates in the
establishment of the United Lead Company, pre-
lirninary to a unihcatOn Of that trades inter
ests. Mr.. Browns task was confronted with de-
moralization, nobody making hsadway. almost
TnOf7vr IOeO
the widespread rule. Within couple OF years
competitors become allies. benu1nbing trade
handicaps are removed. prosperity unprece-
dented results revolution SO consequential
that without imposing any new burdens upon
consumers the NauonaI Lead COMPANY NOV "
formally announced as absorbing the Uast9cJ IS
able TO show earnings which Will maintain .
per cent dividends upon its common stock
hitherto paying nothing.
Benefited in much the same way, United
States Rubber common shares are entitled 10 a
substantial rise In view of the fact which will
be soon officially disclosed that per cent
dividends are being earned twice Over-manage-
ment of experience and integrity effective
In American Ice is scored one or the notable
gains OF the week-close to s points, and 20 as
compared with the quotation when only few
pointed out here. The company has exceptional
prOsperity-due much less to any profits in
prospect from advanced prices for product thah
to the character Of the MANAGEMENT IL enjoys,
President Oler and his associates being veteran
practical ice men, conducting the property as
merchants, not merely expanding business pu~
operating economics whose results make divi- 3
dends seem certain. Recent purchasers ot
the stock are confident of much higher quota
tions.
Dstflling Securities shares have been among
the weeks features-advancing cOincident with
the progress in Congress or the plan to Abolish
the internal revenue tax upon alcohol for use IN
the industries and arts With such tax eXeInp-
ton the Distilling COmpany's profits would
forthwith multiply vastly; and washington a0-
vices are that the new law Will be promptly en-
acted without the aid OF such legislation
the corporation already pays DIVIDENDS or / Per
cent, and earns more.
OF course in any consideration OF market
prospects for industrials attention sensibly cen
tres upon United States Steel Corporation ss-
curities-and an inspiriting spectacle it IS Upon
a capitalization of and half billions, gross
earnings per annum are at the rate OF more than
5000 900 OOO-more than ons-third Of the capi-
talization earned IN one year-and net earnings
run at the rate Of more than S150OOO,OOO per
annurn-or 10 per cent OF its entire capitaliza-
ton And these sO-Called net earnings are al
rived at after arbitrary appropriations or mir
ions upon millions for betterments, reserNS
funds and the like, fOrufylnS tne company -
impregnability.
Since dividends were passed upon the COM
mon Stock-juSt two years agO-the surplus ha@
steadily accumulated till Ii equals a large per
centage upon that stock. Estimated earnings
ther handsome addition TO the surplus-crsoOle
predictions being that this one quartefS he1
will reach SSS 600 600; and the question or com
mon stock dividends will now doubtieSS os Us
cussed Declaration may not come immediately.
but it is a reasonable assumption that II WI
not long be deferred, for under the adnlnlSfa--
tiou of Flbert II. Gary George W. Perkins anu
their associates, the policy or tne COT @ ~.
frank Integrity and honorable Stewardship.