New-York tribune., 1906-07-29

J. Pierponf Morgan g. eat houes Tns
come that the security market has give, ~,
Is natural
stock-1oobing pessimists with their -,
string OF sneers and Stiffness woven into os,.--s
are routed. National prosperity stin misses =
solrntiy that it is something else than a -
tional handicap.
With hardly the scantlest variation. thar. -
now be repeated what IN this review Was o.,.--
week agO-insisted upon as providine "a. -.
90 market conditions:
One effective element rejects our cro, ,,....
both has gone hystera-into bo,h has es os
appreciation OF grospeIity sane
the close Of July showing not only satsfsefc,ss.t st
20 quality too Our whole agricultural WTos-.--
country = assured Of money yield unpaTsIi.l---4
profits never hitherto approached and - -
InOdation time-and on long tIr1e-cssSc.s-' %
haN- abnormal featuTes-money for the rest NJ 70
yeaT P1elnS 1S realty ootainable well within the nat
Much has been heard. wherefrom forlorn p.-.,-
lists are still intTuding their shTiers of di5S~--
abroad. more especially as % Russia IN Ts-SI.
hs ,s reS,I o1 treaea investors hopeless
Inent would be grOtesque were il not Criminal -
ia their ST. Petersburg investment En- oSs.os sss
isn't burdened with the scrip that comes ous =
remotely. through any of the curious entansismssf
with which the Car may be sei1ed-United Stsfs-
a per cent national bond far oveFsuhscgibsF ~
points on points above par-goveTnment credit N 81
the worlds history unappTOached.
While Walt Street Is always doing curious tbf--s
seem past belief that security values can nov T q
made 70 droop-the Intrinsic value OF every -
having actual Origin in conditions which the Wh9s
sfsr5ay 7 pFpeTiIy, IS Measured BY any
Street depression status Is Unwarranted inezpiicS
ble-save only IN the theory that powerful rsnip1-
4aJOfS COLuOlNe 70 rG0Elcolo uueaSuega
eontemptuous 0Or a tinne) Of basic facts.
shov-the wall Street stock list CIneaSgTs5 19 ~; -
gains. az
All this. and materially more, has been vsr
fed through the developments OF this weeks
security market movement
Not Only-have we had buoyancy. hut thsv,
ase. To some extent this activity may not 30
quite as encouraging as might be desired
Southern Pacific and Union Pacific have esDe-
cial cOnspicuOusness-the suspicion not bainy
wholly baseIess, perhaps. that n1anIpuIstioS -
adrOit character rather than investment buyirr
IS responsible for the rapid substantial advances
IN that particular quarter Insiders. as heavy
buyers Of both Southern and Union Pacific dur
ing the recent depression, may not unuaturalIv
be excused for letting 90 OF accumulated stock
IN the markets. current improvement Sucr
interests had an extended short interest n
help along their lift OF quotations
Conservative Wall Street may find. however
attitude regarding Union and Southern Pacific
stocks. through the disclosure that one or both
OF these properties (Or hnanciers Representing
one or both OF them) have recently been heavy
borrowers OF time mOnev seCretly-tenS Of mill
ions Of dollars obtained for no purpose explained
or readily understandable Moreover, the Way
in which these tremendous borrowing transac-
tons are suddenly disclosed to the public may
not unfairly be taken as Indicative OF sometime
else than friendly cooperation upon the part
OF other great railroad and financial inteysta
The Illinois Central situation has cls1fed-
so public bulletins have It; but the public bul-
lstins may not be telling the whole story.
If we are soon to have any trouble for the
market, Il may not Unexpectedly come from the
Union and Southern Pacific Quarter-nOt nsW
Union Pacific and Southern Pacific are not the
safest stocks in the market.
AS over and over again has been urged IN this
review. market opportunities are large. conspic-
uous and many Brooklyn Rapid Transit and
Amalgamated Copper, the Hawlev stocks the
Vanderbilt group (nOtably Big Four. United
states steel, American Smelling. all the metal
and mineral issues. Southern Railway, Rock
Island and Especially Erie stocks. have prom
tnence IN the list wherein intrinsic value al
ready far Outruns market quotations Last
week, the gross and net earnings Of Erie. FOR
example, were quoted here-the period OF five
years before President Underwood assumed con-
troll and the five years representing what has
been accomplished during his administration
eOmpared-with the result OF gross earnings Of
S1d6O1O,OO0 before Underwood, expanded under
Underwood 90 more than $227, 100000. with net
earnings meanwhile increased from S43G0OoJ
before Underwood TO over S6S.O0000O under Tn
derwOod-an increase in gross earnings Of 80
per cent. these increa sed earnings rejecting tho
prOgreSsiVeneSs Of the Underwood adnIinisrra-
tion-and that 80 per cent increase In gross at
tended by an increase IN net surprising % por
cent Eries market quotations in the face o.
an exhibit like that stay curiOusly low. Back
In 1901 Erie Railroad earnings applicable to cap
italizatiOn were substantially less than S2S5os-
ODO-this years figures In the same iteml lzatlol
surpass S6.5O0ON0- Thus does progressfvensss
make records phenomenal
In Brooklyn Rapid Transit a peculiar si,ua-
tion exists. group OF spectators. hithssto
friendly TO the stock. banded some time asO to
make q scoop. They filed Wall Street early
this month with representations that a Brook
lyn Judge and the State Railway C0EnuiSslQ1
were about 70 penalizs the property. The n
stStenco was that a fve cent fare was % %
made a maximum over any route. even if otasz
independent railway lines were used: and us
forecast determination Il was declared would
so heavily assess the Brooklyn Rapid TransE
Company that earnings would be tarrfca-y
Diminished. Up TO date neither the Railway
what Mr.. David Iauar's associated phflanth-c-
pists have predicted
Brooklyn Rapid Transit under IT'S pressns
progressive administration, IS earning divitslGS
IL IS giving TO Brooklyn such service as never
hitherto was there apprOached-a service con-
parable with the best provided IN any ciT SR
tics are against It. Net results (and public
satisfaction with its serviceO certify il Or 3
- AoE cent O4VAuGuU DdSlS-el1O materially L.l.e
than per cent Is being earned-BTookly2
Rapid Transit stock IS well worth par.
Upon the Curb Cwhere the low pricee stocks
Of Wall Street are dealt IND there has this wstz
developed a market comparable On 0uoy1lcy
with the betterment on the Stock EXchausA
Nevada-Utah copper shares 70 which passns
reference was made here q week ago 0rs es
the close OF the week moro than so per csas
0lener than they were at the weeks sl-ra
IL looks as II all the low priced copper stoeAs
were In for Improvement There are q goo9
many Or aN--L--.-t