New-York tribune., 1906-10-14
The Financial World.

The Financial World.
1t is no longer a question OF American prosper
ity. The one problem now presented to railroad
and Industrial managers Is merely how TO keep
pace with development. Plain routine reports
reveal growth of earnings staggering to the
imagination. Figures presented by Northern
Pacific and Great Northern. for example. run into
millions OF increase. affording reliable testimony
to Northwestern prosperity duplicated IN tho
Southwest Testifying to this is the Missouri
Pacific report. which reveals earnings far more
than sufficient to provide dividend requirements,
though obscured by persistent charging to bet
terment account. Actually Missouri Pacific
shows earnings OF more than per cent with
probability of Improvement
These hohrishins conditions in the railway
world are complemented by all Industrial re-
ports. 1t Is reliably stated that current earnings
of the United States Steel CORPORATION viii
smash all previous records. Orders pour IN be-
yond productive capacity. Profits must BE-
greater than ever known; and these profits ara
aceumulative by service 10 the public which
anords 10 consumers benefits OF economy never
before achieved.
Basic conditions continue TO be superb The
government report corn confirms the estimate
OF q 100000. .OOO-bushel crop: and the impor-
tance of this can scarcely be overestimated. Corn
commands a remuneratlve price-and corn IL the
material which produces not only cattle and
swine but is the basis Of more than hundred
manufactures. great corn crop is more I'M
portant than any other single development
yielding riches to the farmers and ample oppor-
tunlty to manufacturers
Nothing develops to obstruct the march OF pro-
gression Agricultural, industrial trade and
financial conditions respond to fOOd-tide pros
perity- Against the upward march what ap-
pears but phantasm? Occasionally the market
gsIs chilled b. aPrrehensions over politics. This
is natural enough. because politics must be al
ways Nan unknown quantity. But the impression
grows What common sense viii dictate the result
OF this Ealls elections.
Coming TO consideration OF special market
features notable is the continued advance In the
price of coppSg metal-now approxinating -
cents per pound This is entirely legitimate
trade development\qui unassociated with stock
market manipulatioQ. New demand for copper
is In evidence and I'M vast lines OF manufactur-
ing extension there is no possible substitute for
copper. Market manipulation can show tempo
rarily IN Amalgamated, Anaconda and the
smaller properties traded inNlpon tne Curo. out
actual expansion OF value caISot be contested.
ties from the highest priced to the lowest priced
are bound to follow the upward ccuI se OF ths
| metal which they represent
In the railroad list premiership "a taken by
| Union Pacific. which has come now to be GER
orally accepted as the market barometer. storta,
| are plentiful concerning it's acquisition OF ST
| Paul and the forthcoming completion Of the
Nanderbnt-Harriman deal so long prophesied
| That certain great negotiations are afoot IA be-
| yond doubt. Union Pacific valuation doas nor
nSwever e6OUs Gepend upon future transactiOas-ft
arlthmeuc-for. judged by any availabIa ds.a
| ZOO Is conservative estimate OF what UTnion
Pacific Is worth. And it's tributary So1tb .rI1
Pacific, can safely be estimated as entitled -
| command par N :"
Developments OF Importance impend IN a num-
Der Of conspicuous railway pronarr,as E-+.
plans will soon show on comprehensive unas
| the patient investor will In shorter Tina than
generally calculated command divtdsnds mon
| Erie common stock
Ii Coiorado Southern progressiveness Is also
to be speedily productive Among ,ba low
Pr Psiceo st9cks tne colorado Southern issue may
pe consldered as entitled TO pre-eminence as
| bargains at going quotations. The proparrv ia
| respohdlns pnenomenally to the intelligent az
| sresslVeneSS or Its management
The money market ceases 70 bs a rnsnaee
Time loans are offered In abundance at less Than
per cent, and call funds are obtainabIe at be-
low per cent Our ability to import gold as
required has quieted apprehension It is per-
fectly plain that New York has mastery Of the
| II needs. The Importance Of our governing DO
sition has before this been pointed cut In this
reVlew-denonstration merely comes
In the market upon the Wall Street Curb ac-
tivity Is maintained and buoyancy continues II
looks as If a mining boom were Just ahead Of
| us-history repeating ttself-no more fascinat-
Ing proposition presentable to the ordinary spec
| ulative mind. for 1t Is easy In the mining field
10 figure that there Is always a chance for ths
million from the dollar. So hearty Is the cur
rent outburst that long list Of prospects-un-
| tried. If not worthless-are swinging at figures
I which would be ridiculous even for proved pro-
| ducers. Some such stocks are quoted-are sell
| ing-at half dozen times their par value. in
contrast with actual unmarketab.s condition
al any figure. however fractional. bare.y
| month or two ago. Sequel 10 performance HAs
| this is. of course, merely a matter Ot little
| time. But the exhibit is meantime sorry one
| buyers OF stock Ignoring open opportunity To
| learn what Is ana what IS not true in boom
/ tales sent circulating.
/ And what makes the circumstance the stran-
| ger is that while in the broadening out of thiS
new mining market a number or SJabLS44ed
! properties are participating, nndlng new favor
with investors. IL is not SO TAR those Of highest
| character which are most popular. The buyer
! of any security, whether ii be railway share,
| industrial stock, mining issue anything else,
! IS negligent OF safety, il the character OF man
/ agement back Of the security be not scrutinlzed
/ and appreciated A property may be new with
out diSCredit, but no prospect can be fairly COM
| pared to the prOduCer-actual measurable value
I can be the only thing safely counted-intO such
value, however, entering always the element OF
/ managerial character. And in these times II l5
| so easy TO get at facts that il is ineXcusable
| actually culpable, not to know what The facts
\ are Take for Illustration merely, the example
/ of the Mitchell Mining Company. traded in upon
\ the Curb now at only about half The price COM
manded year or so ago IN an equable market
| the stock selling then at 10 being afterwa dS
knocked down by the sharp practice OF group
| Of vrh hay haA rafr