New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-25
The Financial World.

high. When pressed for reasons as to why they
are too high. nothing is offered but vague, loose
talk-no facts are presented
On the other hand available statistics al dis
close constantly improving prosperity for both
our railroad and industrial companies. Getting
away for moment from the more conspicuous
market leaders. consider the earnings Of Cana
dian Pacific and the 500 Line. Here are two
systems VIRTUALLY one) handling important ex-
banding traffic OF the Northwest section OF
this country and Canada which not so long ago
was business wise) almost a wilderness. Now
there is section of the continent relatively
more prosperous. The earnings Of both com
panies progress by leaps and bounds with fun
promise Of continuing growth Can there be
contention that prices for these stocks are too
high? Certainly not as measured by a disclosed
earning power which must soon result I'm even
larger dividend distribution than has already
been reached. As uniformly maintained IN this
review, value is no mere matter OF guessw9rk-
II can be vigorously computed. The long-headed
SCotchmen who years ago invested in Canadian
Pacific can afford 10 smile at the vapOrings OF
Wall Street pessimism. Having calculated they
just sit tight, and collect their mounting divi-
dends. These two stocks are Illustrative ex-
ampIes merely. The same hOurishlng conditions
are found all over this country, South and south
west as in the Northwest Every part Of the
country fairly boOms-
Actual developments OF the week are favor
able. The Moroccan incident approaches The
last phases Of peaceful settlement dispeumg the
clouds from Europe's financial skies and Great
ing chee-fulness everywhere. One direct result
to our market will 10 doubt be heavy buying
orders for our securities from abroad. Foreign
capital has been locked up pending a settlement
of this question-it viii now be let loose and, as
capital always does. viii seek the most profit
able employment 1t can find. Naturally the
bulk Of it will come here where good securities
are still purchasable at prices yielding a far
larger percentage OF income than can be OBJ
tanned abroad. And-mOst cOnsequential-as-
surance OF European peace win guarantees an
easy money market here, as abroad. We VIII
have large gold imports.
1t is not now considered probable that any
general coal strike viii occur But should
strike come, 1t Will not be the serious matter
that II vas in 1903. The coal companies ara
fortified with very heavy stocks on hand, and
it is even limited that some operators would
rather like a strike so as 70 give production
rest. This is probably far-fetched but 20 IS sig
niifcant as showing the confident feeling pre-
valing.
But the bear party. deprived Of real ammunl-
ton, turns out a good deal OF the phantom klnd
Some shameless rumOrs were started I'm the
early part OF the week. depriving john d. Rock
efeIler of reason, while killing other eminent
hnanciers. In none was a particle or truth
Such despicabIe tactics defeat themselves. The
rurnOr and lie are only fOrCeful when they can
be sprung upon frightened financial eomnu-
nifty. There Is no might now ENery sellns
spree INDUCED in finds the market harer and
barer of stocks-the floating supply getting
pretty near to the vanishing Ioinr.
There has been no commensurate appreciation
Of the absorption of securities by our home in
vestOrs during recent years 1t requires indeed.
lust such campaigning IS we now witness 70
make clear the effective significance OF this
phase of the financial situation Howls and
hurrahs, based upon himsy preteNts, no longer
have considerable market influence. 'lochS IN
vast volume have been bought, paid for-taSen
away from Wall Street. And this establishes
condition such manipulative spectators
have not hitherto met.
That we shall have market Improvement this
spring. soon after the turn OF this month. in
fact, is very generally the undsguised opinion
Of many conservative authorities Easy money
in alliance with national prosperity cannot fail
to ignite Wall Street enthusiasm The exhibit
Of the past three months represents not a bear
market, but a bull market held in check-a rest
ing market We have not seen stocks Hquidated
I'm substantial volume: there has merely been
absence Of speculative suppOrt-many 81 our
most important fnanciers on vacation. But the
abSeutees are beginning now to return. Most OF
them Will within the next fortnight be In har-
ness again Coming back, they md that re-
pressive tests have been withstOod excelleuty.
that manDulative market spasms have not
stampeded investors, that there has been neither
scare nor scUrry in face Of foreign war threats
abroad, or coal trade threats at home The rec
Ords of the railroads and industrial corporations
Of the country, showing expanding earnings right
along have exerted more influence than all the
ramming and jamming that adTOit mauipulators
have undertaken. Thus. the market IS actually
ready for reiuvigOratiOn.
AS the market improves Il seems probable
that shall find the lower priced shares be-
coming more ACKNOWLEDGEMENTS the Ia
vOTites. Union Pacific and St Paul North
western and Omaha. Louisville and Chat
tanOOga, Reading and the other anthracite
tssues-stOcks OF high class as we'll as hish price
are destined doubtless to reach much better
quotations than they vet have scored, and tbs
forecast Of new activity and bUOyanCy for the
cheaper stocks does not theOrize that the cost
Her ones VIII be either neglected or reacuve
But the Stock Exchange list IS crowded with
shares whose market value does not yet appre-
Ciate anything like fair measurement Of their
intrinsic worth. And this applies not merely 20
the railroad list. but as well 10 industrials
Southern Railway. Rock Island. Colorado and
SOUthern-the list could be far stretched out
are IN this regard properties generally and
widely representative every part Of the
country expanded prosperity is telling (has for
a long time past been telltng) for the good OF
well managed railroads. When 500 shares.
barely a year or two ago, were kicking around
Wall Street at petty figures there were not lack
ing clear sighted investors able to recognizs
what good times could yield TO q property so
situated; and the splendid record of the prohtS
reaped by such Observant investors is record
that may elsewhere be duplicated Following
the patience which has been necessary through
a long. constructive season, We have examples
in plenty of railways whose relatively lnsig-
niaCant market valuations are destined soon %
have size and stability for the reason that dtvi-
bends come 1t is not reckless to forecast divi-
dends for Southern Railway and Colorado
Southern and Erie common and abundant
others. Part waiting time has not been waste
time-the 500 example. splendid as 10 is, VIII not
stay unique or isolated
Apropos of this developing phase OF our mar
ket situation. attention Is called this week 20
the concrete example of Nickel Plate Railway
shares. the company announcing a bond issue
the first Increase in it's capital account for more
than decade. Ten years ago Nickel Plate had
4.-.1 .,,{taT stock first urafarro5 ss..,,F ~ra-