New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-28
The Financial World

The weeks market has stood sssr-b,
one aggressive speculative intersss -
bullish enough to be among recognizes ,--.o
turned suddenly and sensatiOnaIIv -,
for quOndam cheerful confidence p-a7v..-1-las
sentiments OF disturbance threata,i-.. - pre-
Wall Street gave varied attention N ,t.- -'eas
some weak souls responsibility thro,,,-- --'0E
their stocks, while the sane majority ,,,,.I.@y
renely independent OF the fabricara1 - - 81
and not one investment quarter was -
rufied- For two days there was prezvr-,
phases OF It savage. It was such a -a,,.-'
jammlnS process as recently We bs,-. --llnS.
seen And for net result we have 49, y seldom
that - discOurag ing. Some nervous rs--- IAls
Deeh scared out or the market. some boIf r-,1 a.4
nave assumed the risk OF selling what -
not own, what ultimately thsv r-rst Ley o.
Technically this does not represent % - ua-A
market position-and no argument az h -. 4.
needed The situation IS all the s---rL-ls .
what thus the week has endured ioe
OF signs showing IN the market ors 4.u.
coming clearer IS that there Is dsvar,-r.-' =
dency toward favor for thu. lower r-fos,T 49,
Some important operators whose f-ega-.. !.
always traceable I'm any broad market a.
deed. earnest In urging such change OF aft',,5-
not that the high priced shares are zoo -
higher than prOvabls value. present 80
afr.rLr-
actually so far had no corresponding -.
ton in the markets development Tr "a -
out by such authorities thai v-lrb Oh. -
OF half a dozen issues (notabTv r-7fc- r,-g..ln
Canadian Pacific and Reali1gJ the stooI -
ket is not now high az lt Was IL fdor -
despite pessimlstic paroxvsu-s 49,, - 80 ".
fact, been no adequate apprarfatfo- - g N
traordlnary progress in thu affairs a. = -,
list OF properties whose securities range f-oTss
In this list OF stocks vet unnovinr n 49,,
sGcn eAtehL q merit warrants are those OF r.
character or Southern Railway CrasaDzs,,-- - -
Ohio, Mexican Central and Chirav0 C,-as+ v- ~
eru. Some OF them during the r4s- - 49,
advanced a little but none ~ ~, ~ - S.la 's
to any extent COmneEsurabls win vaIus 80
Chicago Great Western as example $50 - -
earnings are shown, such a revolution 80
place In the cOmpanys Affairs as induces -
establishment Of its first preferred stock C-sHs5
a stock 70 dividend paying basis sr5 tb1-I
recognized as preliminary % The bringing ~ -
second preferred called ''E'' stock go -
dividend position These Great Western $50,
current conditions cOntinulng-ars eve-v sTs
OF them bargains
That this theory meets response show. q, -.
course OF the past weeks market Substantial
advances show IN many OF the medium priced
stocks Denver has risen NEUTRALITY-SUSPICIOUS.
enough. inasmuch az It's control OF the great
Western Pacific gives 10 such new CONSEQUENCE
as to warrant competitive huyirg.
Incidentally numerous stocks having mora ~
less direct relation with the Denver property -
come active and strong II directly traceahs 70
the Denver movement Itself Colorado Fuels
rapid rise has some such relation Indications
OF developing strength iU Colorado Southern
issues may have similar origin-Colorado South
ern's own situation being now disclosed as ex-
ceedfngly prosperous. fun 3 per cent dividends
earned upon first and second preferred, with
favorfnR outlook for the common. u T. not
difficult to foresee a combination deal which
could put Colorado Southern common upon an
equality with Denver common These are con-
soldation times
Before long We Will have disclOsurs OF corpo-
ration combination deals IN plenty. The Van
derbit unifcation is now practically rounded
out Nickel Plate and Big FOur's new values
cannot be much longer disguised
Nor Is it difficult to comprehend the tnspia-
don Of capital to concentrate. so many are the
encouraging recorded examples-showing in ths
railroad and Industrial worlds alike. Take, for
illustration. the American Wooden CompenYs
phenomenal accomplishment SeIal-olncal
forecast IS lust made OF to annual report TO b
issued FOR 19O5-presenting the srUpenoOus Il
hfbit OF annual income apprOXimauing S4S,3t4-
GOO with profits closely approaching s5O0eOge-
and this by properties Gin cOmbin2uon) WhiA
as recently as half a dozen years ago (oE1cA
moro than s21.000,00O. Advance has been ste2a,
tly progressive, not one year 1allng 70 record
successive Eaius-the rise from 1914 20 lsgo
actually reaching $4,000. uUQ- As SullInarlIe1 N
trada authority. the American WOolen Company
within less than seven years has been able 70
pIaCs ST. coo coo TO surplus account, n adclloh
70 c0fncidpnt distribution Of nine and tnree-
quarter millions in dividends 70 preferred stocS
holders This analysis shows that during ness
seven wears there has been expended upon rs
property (al out OF ea-nirgs) SLOOO0oa nus
more than doubling manufacturing capaclSg-
and 10 is this very appropriation Of ea-A--ss
which explains phenomena ll -l - -.
wears showing. after the ful : Per cent upol
the preferred stock leaving - per cent lol -
cOmmon-for the last four years, indeed Is-s
has been a surplus equal 10 per cent !s~
earned on the COmpanyS total co-n-lOl 9-. $50
and there Is no bonded indebtedness one mig
that this attssJs IS the high character OF A1a7I
can Wooden preferred as an Investment -
would seem 70 be difficult % ma an lnl-s--
thar would be safer. Ar the current may
price there IS a yield substantially over -
cent.
In discussion OF another Industrial TO VICE.
attention has been called IN this reyieW-'L
Rinia. Iron, Coal and CoSe-s prominent 9-'--
Exchange house IS issuing a circular Iel.71
its clients setting forth IN some DEAN
merits OF the property, stating;
The following figures are q coIlseI'4'1
mate OF present earnings
On 100000 tons OF iron At IS ton p-ort''--- eSS60
on 600 600 tons OF coal AZ SEQ proi- TlM
VIRGINIA ana Southwestern PROFITS .--.''---''-'
'''''''- '''- aI sss
rute-est On bonds $50
Over 30 per cent. on capital stOcz---...'---- 49,
Among III. railroad shares OF cheaper Pr
ontario and Western comes into pronln'-
Advances are scored-coincltent with sUse
tons that the New York Central Is 70 p-
the New-York. New-Haven and ha Iesv even