New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-10-07
The Financial World.

IS the latest OF our great companies ircreax,
disbursements 70 shareholders It's rata a.
vanees from to per cent With not unup,,,
perverseness. speculative Wall Street has Iook.s
with cisfavor upon this action Not stoppEux :
consider that Atchison Is earning more ma,
three times per cent and hence disburssuz -
than "ne-third OF its yearly surplus. heavy sho-,
sales OF the stock were made because. forsoo-s
some sratuitous predictions OF Q per esn.
DIVIDEND had been made. Had the 8 psr c.ns
declaration come these same profszssora..
would undoubtedly have criticised &c as ~,
conservatives; but when the actual conssrva,t-.
action became public the cry Of "disapposnt.
ment' was raised The market result Is a saa-o
temporary decline in The value OF Atchisoz
And almost at the same time there was seTsn.
OF Canadian Pacific because il saw A. n -
It's shareholders an extra per cent our q I.r5
sale profits. These twO Incidents Illustrate "a
artifcialty OF Wall Streets sentiment On -
one hand, there is criticism % niggardlinsss d
the part OF companies who 90 not expaud dIv.-
dends-on the other hand. there Il criticism ..
those who do declare new Or advanced dfvtazn4S
The Wall Street pessinIst has his gibes ana
sneerS always ready. no matter What ha1psrA
Dividend distribution within safe lines i "a
just right Of the stockhOlder. The American
policy for many years has devoted earnings 20
the physical upbuiIding % ranroaas-ir IA
opposed TO the English policy. which distributes
earnings as they come into the treasury Ia
wisdom OF the American policy e row lemon
strated. Our roads have been brought = %
high standard OF efficiency enz5E-x rrz-. "a
handle an enormous growth O. ---r-C AZ
good results Tor their owners From zoT tt
at least until present good TINES shzu have
passed anywhere Will be cOurinuazcs q thess
dividends and OF increased dividsads Tross
which have already been declared a-e -ors r.
portant as precursors OF those which VII co--a
than they present accomplishment. Thsy
blaze the way.
The rounding out OF the so-caIlsd -ors tesT'
between the United States Steel Corporation and
Grea. Northern Is gigantic stride toward usx
achievement Wall Street has busted ,tsslt With
tfttle-tatrls concerning this great negotiation
buying selling stocks gossip led rlks way
or the other. while meantime The ssrlo-s and
important fnanciers IN charge OF t1e zz--s-
have been bringing IL 10 completion = zss.z-y
manner.
The accomplishment opens up nsE e.-s--
dous development. Transfer OF the s1r--1i q
these great ore fields from railroad o1-7zniss
10 the Steel Corporation means that r1sz viii
be operated directly by those who Tlz1z-as-urs
raw product into the finished articie-l-lvO1Ei1s
great saving by economic operations Ard L
is one OF those deals where each party % ira
transaction actually benefits. Under the admir-
istratf9n Of the Steel Corporation mora ore vii
be used and more tonnage created for the Ta-l-
roads than could he possible under railway Con-
business 10 increased prosperity and &c IL
creased dividends for all concerned
AS regards the Steel CorpoTati9n' this IS Per
haps the most brilliant stroke il has ever made.
Beneficial results must show Immediately Ias
corporation obtains that which IL has long de-
sired-control OF the steel business from alpha
10 omega AS concerns Steel securities. i puts
the per cent dividend on the preferred stock
beyond the peradventure OF doubt II opens up
earning possibilities 70 the common stock which
can scarcely be exaggerated Il IS well known that
upOn present earnings basis the COMMON stock
could receive or > per cent without any iHlgsll
ment OF surplus strength. While WIN ne adas1
earning possibilities that now appear = ca1 % oat
a question Of tiTns-perhapS no long JlErle-Wn7a
the common stock VIII surpass The preferred ss
dfI-f1and naver Out-of-dats critics deplore
the vast volume OF Steel securities. Sucn crifi-
cism is unsound- Value can onIy os !osLy
and ~
Steel stocks, particularly the common ara lAs
cheapest OF the cheap.
AS 10 the character OF the dea! Wnlch 1as
been so tndustrtously mtsrepresented IN wan
Street-one ridiculous story lately current enarg-
ing personal hostile relations between =. =.
Rogers and ]. Pierpont MorgaI-tna1 Can .
best determined by tho high standing Or tas
men who have been the negotiators, lnciaiins
Ebert n. Gary, James j. Hill, J. Flsrpo1. No
gan George ". Perkins. George r Baker =.
H Rogers, John S. Kennedy and Willie D JAMS
IN all the protracted conferences necessary 20
agreement these gsntlsmC 4 have met each ofnsr
in the friendliest spirit and with but one 1ass
obtect-to achieve for their constituents the oe.s
results possible Splendidly Is American rEOs-
teeship agatn exernpLhed
Under the leadership OF the steels the whois
industrial group IS certain 20 become prominent
The Southern and other outside steel producing
companies must feel sympathetic impetus, as
also must such properties as Cast Iron Pipe anu
Railway Steel Springs. in each OF which Iarss
net increased earnings show. And in the sans
cIass ia Vulcan Detinnfng. which is becoming IN
expanding manufacturing property OF larse IS
sured profits The preferred stock at parry
above 20 is a tempting investment oppo.'nh..y..
That Il can be bought at It's present isvei = =.
due 10 lack or inside appreciation Tne necs ss-
siry OF tie settlement OF no less taas ,. 800
estates which we're large holders OF prsi51rLLet.
DEFINING has kept the stock znactIve 1Io.
operation is now at an end Il IS slated liz. 80
OF the most important auxiliary companies "a
the I-nftsd States Steel Corpora ton has secured
a large interest In Vulcan DEFINING ana can
have representation in the directorate
And in the railroad world. as IN the Industrial
world. there are multiplied evidences OF crowd
ing prosperity. Earnings reported for August
and September are simply phenomena $50
conditions favor the completion OF slg 7 s,
long pending. and which are a. 80 -. W.
Swallowed BY capital increases N ->eW 1C-N
Central and St Paul The wise po-lcE Is ue:--S
pursued of securing authorization OF G@lt.S' -
crease before necessity PreI 49,, rs1TraI ALL
anca come about or should other great nleIse.S
be effected the companies involved W. 49, h.
their treasures tssua Die stock WhICh C1LI %
~aeIizad mon IN ordinary way without disturo-
ing the money market. These are tne Gays :.
giants IN financially pettiness taxes --i4i'' "
their achievement -. ,-.L4,r
Missouri Pacific and 81. Louis SoNlhNes'e-N
Will coon show gratifyingy
A curious market feature is the selling o. DIS
tnIers Securities by the professional element On
the story that insiders IN that corporation con-
template the organization OF an nldepead "a.
company to manufacture new proOUc's ~ -
free alcohol bill takes effect. II any eotpct1e
has been managed with regard 70 the Tlzhls =
stockholders Distillers Securities IS suCh . -
Samuel NJ. Rice and his associates TOOK holi C =.
a bankrupt company and win SeaAous uS S.t.
built n up 70 prosperity. For four years stoCA
holders have been receiving DIVIDENDS OF : -
cent per annum. which have Just been ls-C'S 49,
10 s per cent. Complaint concerning the -.
agement OF this company would seem seE''-
comic.