New-York tribune., 1906-07-15
The Financial World.


dreary market. no bad Business dAvslo,-,.-'
appears anywhere-expansion. rroerszsige,...
profits still stay the conspicuous features ~ -.
national situation. The agricultural o1.sloox &,
proves so far that almost perfection I, :.
proached-the years harvests. with scar,. =
exception. promising bumper crops. Con~e--s,,
reports have only favorable aspects. IN one
dustrles. labor and capital are become r71.r,,
sharers OF prosperity unprecedented
Yet on foundation like this-uot the srys.,,.
tangible reason fOe discouragemeut anvwsarA-
spectators are basins a campaign OF decr4zs,o,
Except that Wall Street IS always doing c,-.om.
things. is always promoting what Is anc-.aro~.
% would be past belief that security values ~SS,
now be made 20 dFOOp-the intrinsic y-sl'. :.
every security quoted upon the New York So
Exchange having actual origin in thess crrsi
tions which the whole country over are sra7l1-
prosperity Measured by any standard asse-rs
bic 20 common sense the current Wan S.-ea.
status Is UnwarTantcd. ineXplicable-sava o-i-.5 p
the theory that powerful manipuIators ara rs--- =.
blned to fabricate an uneaSiness conteTl-f- -,
altogether 0or tine) o. basic facts.
OF course. professional speculative orsclss a..
busy-and chiefly the burden Of their tai. 4,
that while prosperity evidences are clear ans
abundant they must not be regarded as ensi.ls4
70 any forcefulness. for the reason that event
Ually, and soon. disaster Is bound 10 be r.a
sequel 70 good times-these vision retailers fo---
casting terrifying results the moment the wo-,s
comes 20 proper realization OF the fact TIA.
somebody in the Standard Oil Company dossa'.
like Theodore Roosevelt. Some excited bear tut-
letins run to the extent OF announcing a gens-a,
hegira Of conspicuous capitalists, unwilling
longer to abide government which can expece
its laws TO be observed STUFF and nonsense Ike
this would seem (OUtside OF Wall Street, TOO
stupid % have influence: yet the Stock Excha-y.
market OF this very week testifes to the err
n al. Tfu II
son. naturally. healthful revulsion viii be bosaE
TO shOw-and, meanwhile. the stock list IN wan
become catalogue Of bargains. And our SUM-
meF'S premier silly season may, on this accom-,
prove even a blessing. finally.
It is not difficult to locate the bargains They
are abundant. They are conspicuous. Take TIA
low priced railway stocks for fllustration-stocks
like Erie. Rock Island. Southern Railway. ths
entire HawIey group; take among the indus
trials such issues as United States Steel. Distl-
lins. Virginia Coal and Coke. Bethlehem Steel
no need to prOlOng the list; every casual Oh
server Of conditions. earnings. assured profts
prospective expansion. sees clearly and must an
preciate the opportunities offered by current
depression Of quotations. In the higher priced
issues similar opportunities appear. Amalsa-
mated Copper is not going long to stay down
where il Is at present; Brooklyn Rapid Transit.
with dividends close ahead, cannot be held
where now il is American Smelling, earning
30 per cent. and likely before long to receive 10
is certain Of buOyancy. And in the railway list
ST. Paul. Union Pacific. Southern Pacific. Penn
sylvauia, Baltimore and Ohio. all the Wander
bilts-needless 70 recount the list-are at figures
abnOrmalIy low destined eventually to rise be-
yond any figures they have hitherto touched
Only folks misled. besotted with the notion tha.
buying power has wholly disappeared. can pur-
sue the theory that clearly established intrinsic
value is going forever to be ignored BY the
American investor. Present public apathy VII
he nfGr f-
done.
Still. just as has been over and over polnts1
out in this review. the waiting disposition e
Wall Streets public clientele has substantial
provocation in some examples where iudsfans-
BILE overmanipulatiOn have been hippOdrome1
The Tennessee Coal and Iron instance. advertet
70 week ago. is. by means. an isolated easss
incidentally, the Tennessee Coal pool has issued
a formal bulletin. announcing that the heavy
holdings with which it is loaded have not been
acquired in consideration Of the dividends which
Tennessee Coal stock pays-sOmething like II
per cent distributed as a total for . years
with the stock thus rewarded selling betUsen
S14O and $3.50 per share. While evidently u =
not for the sparse dividends that the Speel-
lators have tied themselves up with the Ie1-
nessee Coal burden. IL Is to be hoped that OUT
siders have not been so attracted. either. 4ee
in fairness. il needs to be recorded that Ienla.-
see Coal IS representative Of many important
properties wherein there is value additional %
what current dividend disbursements may Sqg-
gest. Tennessee Coal and Iron lands are rtcl
assets. What is unfortunate is that they 90
not produce. imposing heavy charges instead OF
yielding revenues, This, plainly put, Mss
that productive values are fixed in the far tutuIa
Value without yield does not help present stoeA-
holders. And this situation IL is which n1aAcs
Tennessee Coal and many properties Ike x
ridicuIously high at the market quotations
which are manipulated for them-mOney N ne
loan market being worth double what dividenas
amount TO.
Reading provides another exampls-similar
disclosure Of earnings and dividends below any
standard warTanting the stocks market quota
tions. Great values are represented IN re-
sOurces-properties undevelOped and not foF
years to be developed; but the rate which money
commands and the rate OF dividends which are
paid show large disparity. Four per cent upon
a combined railway and mining stock. sucn as
Reading is. hardly makes plain a value tweaS
points 0ately I'D above par NOn-prOOuciAs 81
sets aside. Erie common is worth as muen a.
Reading-its management quite as good
How earnings available for Reading conn. conn.
stock fiuctuate appears in the following eXna.s
going back 20 19OO-it being particularly IT,.
esting to note the up and down movenle-.s
since SURPRISES began TO appear during the tA''
four years;
1901 -Deicit
1902 Deficit 800
lso4 lsS4 s1FBia. .saFPiias ass tsss
ISSS s-rbhls STessls
or further exceptional interest is the inolct-
ton OF the same great huctuating tendency
comparison Of this and the preceding 49,
available balance fund, after charsessI
itemizatiOn by groups Of months being es ~
lows;
1sOt-O5. IsO5-O6. s-s,s.
July September .slsSs42I s.. ss5.e9l IneEsass ssS
JHiy-Say -. S.SSS isS T4@S55s Decrease lao''
vrrf