New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-09-09
The FInancia! Wo,lx

Il
b essional traders accept this ,,
aHaIFsls OF the situation ~r ar1ar. 81
80 Ing Money n in active Ssseais aosS 4
beo,,-le country Ia marvellousIv a ad bsss B
Tryss o tOF every dollar there h. psospsrsp>
ohoer our cumbrous fiscal - pfohls6ls -
- i1slons exist there are bound - Rnen ~
no WaH street money marI<af- -. pc nlrrs
cauec a. 80. ~ VITA them no threats "a no-s
80 % 50 caiculably plain Ensn A.
neen destroyed or lOst-is IN sc.,siio ley has -
-~ '.dn ever befOre-DlenffF,1f me res
poses. And Of tremendous innor,. 10Y al u.
national $50 - commanding position ~ u
es Ois me moment Il Is nesfad Tru' aorss /
mere VIII De official announcement -. to-rno-ss
imports the first OF many to follow u asss o.
incldentai - this money discus-,o,
y, sis go nl 50 many quarters azafns, g.
I - LuIiuS TOT speculation. Yet la1iti-s. nsuH
- ~ - hsaitnrui and helpful Ta[a = spses
=. Chon Pacific, which recsnf1,. - as IN
dividend from 8 per cent - Tos a0Vanc,c b,
r. IOSeu earnings approxinstinS * M Ipr
~ u ehtirely natural that rns0 - Per crr
ra-,. examining the statements % ~. Hds
pdhy, should decide 70 partfcfpaf. A., lis LIS ccr.
Fise IN It's price which seems is..s sas tsr,s
course. such an operation is speoDia., ,.ao's o
more so than ordinary daily frsrsa.51 Ous n
b1,sisas pLe. Ine aging In OF family sInrI..a
business equipment II there Is xooa ssas =
0eieve that commodities are Soios, , .7ason 3
sensiOIs man takes such action In he -Fr
mt TO abolish the speculative eler1s Taas ,.
ttons - ~ a. commercial and financial tr,r..
teIlsence Of opportunity specuIsfso. I've .. T.
ways De prominent factor. and bora.,s'Aa A.
Inucteo, IS the handmade OF real husfnas-' o-.
eloss views are Just as applicable 10 fhs - -
market as TO the security n1arkef W nons
speculated In Just the same as stocks. Ts .sY
OF course, exceptional conditions sf--a@s ~
,lssy. Wnen u becomes scarce through =.
LesuIuns N hoarding, as IN the so-caIsa .
rency panic OF 1893. the financial S~a.'s ~.
proaches panic; but when Temporary sc.-s s ~
que 70 expansion. not contraction The 49,.
very Inherent. And the security -,a-,.. 49, =, y
week has plainly shown thar conns.,c. 80. ~ ~
tne fluctuations due % high call loan rates -
extremely moderate and recessions foIIo0vaS =
JUICE ~ raIhes. There was az no time curtailn..
OF buying pOwer-there was frequenr sxhib-s.-
or renewed short selling, which must bava ~
the market at the week end in a vsrv 80
technical position. '""
Most interesting of the news announcements.
me week was that which came from ire p.,,
sylVania Railway. chrOnfcling the so 80 o.
more g OHIO and Norfolk & Western storr,
through which virtual control OF thoa. n,,,..
Ties has been held. On many accounts N.
deVelopment was surprising: ana some cu-,o-. |
theories are launched by way or explarstior'. !.
I Is. OF defence Pennsylvania income non
those STOCKS. as additionally acquired has o.
continually rising till from less than s7n00n
collected In 1900 they turned into the Psnnsv,
yania treasury for 1905 upward OF So 4O00iG
II Is pointed out that the PennsyIvania r.ks.
through the sale-recognizing the nu-~Ss.s
holding and final sale as merely stock r,arss
tranSactiOn-frOm S15O00000 TO S2OO00na
These are tremendous figures: and II Psnnsyi.
Van1as venture on this account was merely ,has
or Spectator the result Is entitled 20 applausa
But the best friends OF the Pennsylvania VII
hardly Insist upon any such construction; VII
INDEED. not readily permit its confession. Car.
tatnly the Pennsylvania Is put into possession A
liquid assets. and will be able for time 20 post
pOne further increase OF its own Capitalization.
From the realized profit IL Is suggested TIA.
z TN~fr
the payment OF an extra dividend upon Psnusyi-
vania stock "Out Of investment profit" But
calm consideration will hardly conclude thar Tia
Pennsylvania is financially strengthened FOR ira
future by the disposal OF such productive assstS
The stocks have been sold Just when thsy we're
becoming largely remunerative. As recently a.
1900 Baltimore & Ohio common stock was yisId.
ing only per cent, while now IL pays g. Nor.
folk & Western common stock now paying and
credited with readiness for an increase was also
yielding but = per cent IN 1900-combined returns
from the two properties last year SURPRISING
SIS. 700 .O00-and this income now disappears from
the Pennsylvania balance sheet. II (as PECULIARLY
the proceeds OF the stock sales ars
to be used for physical improvements. EventE-
ally such investment may prove splendidly re-
but that forecast "a, OF course spec
ulative.
on the basis OF most theories hitherto accepted
and urged by friends OF the pennsylvania. me
tremendous transaction Just now annOunced
seems very like Pennsylvania retreat
Business conditions change emily 70 Improve
This is not local record merely; II Is the coln-
rywide record. Every time a corporation MAKES
l report the fact has official registration
less activity unprecedented-capltal and ado
alike employed to the uttermOst limit-and not
NE suggestion OF tendency toward reaction
Here and there unpleasant incidents develop
1ut each has its own special isolated excuse
There is nothing representative in Philadeipnas
rust company collapse, either businessWlse Or
morally So also IS IL in the dividend retrene1-
nent which this week an Industrial eorpofsloD
ID fnancierlng has wrought this latter trolo.-
clear and beyond question IS the heaithfu.ness
" the cOuntry's business situation as a wno.'
The national story is told significantly n NC
earnings statements which the railways keep -
suing gross earnings piling still higher an
higher. operating percentages getting doNa y
profitable levels-net earnings resultihg -
wen better than gross And this II equaiiy -
II industrials. Amalgamated Copper ana shis-
States Steel testify notably TO this-0otn teS1
low for market advances
In recent stock market DEVELOPMENTS We hsss
)een fairly dazZled by prosperity result IN -
Northwest. as eXemplifed by the great Uses
he Hill stocks. the WOnCerrui earnings ~ -
Paul. and the official disclosure Of Union PaeiA
profits of which the new dividend rate Dut ~
'esents part. As in the Northwest so W.. w. =
1e found in the Southwest. The roads OF -
territory bid fair 20 be the centre or us .ss
interest in the near future. II Is well VILE
bounds 10 say that the shares OF every inapoaA-
.ailway operating IN the southwest are Low =
Wall streets bargain COuAlcA- Lo@1
ample the exhibit OF progress made IN ~
-souis SOuthwestern-whOse recently closed - ~
-ear showed increase OF earnings to q total oas
= 9S0O0o. while the two months or Ju sy.ss-
August upon the new fiscal year score furrns
sain approximating $4,000. or virtually 10 y
,ent. SO mounting above previous notaoe,
2ansion as 70 make il well within BOUNDS 70 -.
.ast S1OOO0O00 for the year now un0cr -
And that accomplishment IN gross VIII hisas
Field IN net of at least S3SOOOoO WHICH, -.
allowance FOR total fixed charges VAL
81 100000 surplus applicao.e
ne company's stOCks-eQual 20 . per Cen. -
he common after . per cent upon the ~. -
rhis is a phenomenal exhibit. IL rene''s -
prosperity Dominating ~ ss,,ossns
sT,Ithv,estern territory. and more, u betoNss.
What efficient management can DO Wheu s.,
presses Large expenditures for the u..,i,s,
nent of the property (charged 9iIeCuS - q
current operating expenses, and taAen - - a.
,arnings) are rounding out system '' ..rr,,,,
President Edwin Gould summarize l.,.r,,.si. I
be IaSttngly prosperous ST LOUIS Soo,uaSrl,shsi
~