New-York tribune., 1906-08-05
The Financial Word


steel common stock. From the So sa-
security market intrinsic coudis,,-- 'a' &
complishment could not be rs,o-r-. L.
very nlsi'eSt plane the action is helpsu,- \. &.
tremendously What especially Il ea-,-s...
inspiri'ins fact thai Wall Street cyn,o,--.si.. G.
Gerers are dispersed-by the dizclosu-s !. =
F1erPont Morgan stiu stays the con,r~,,,.' 49, Z
ana inspiration in the affairs Of m. .s'''s
corporation Of the world s'el,z
Without in the least belittlina The
~lhIluehce ~ marketwise OF the superb .s---. -,,s
] earnings by the Corporation, fsos s-osi ils q
more than waFranting prevailin,. tval q.
stocSs-it IS safe 10 say that t5a ss - 20 q.
Morgan domination adds tenford !, -e.sl1tlc- p
% %Sile Iuture- IL IS but necessary 10 roI--
history OF Reading and Erie 10 an1.t-.-. s-.-. % t
Morgan control me rs Thesa ~ .---'e U,
panies. under that control. have boe-- ~ - On
@ @LIoIa oanHrup.cJ 20 prosperity. Now ~
Case OF the United States Steel Cso-,...- y us
tneFe mas never been any worss 49, t.l'd-.--
than the temporary depression il ..ee--..lr-1
Whlch caused common dividends n -. - ga
some three years ago. But yrbsr, ~, la.,
Ssuus were passed. the cry went uo fro--
big and little bear in Wall Streef 49,. u s,-
business was dead. and that the Co. .7 ''s
Deen organized Tor the sole purpose - -
a lot OF watered stock upon an Hr.---ol g- S,..ol,s
public ~--s~-ssc1-
Through the long period OF crftir,.-
vilement which followed. Mr.. MOI ani y
emily maintained a conservative bnta 49, eol::
titude on Steel. never waverfno - -'-.i- g
IN ms oeief m the future OF the Corso-ss'
ana that belief no mere impression. blSs -
knowledge. ~s- lo-1
Now comes the restoration OF conn.
dends-eveIy promise kept q.
Ihroughout the entire financial vOrI4 "a,
SUMPTION OF common Steel dividends - - =
Viv1fying force Il will proclaim tbo -. si-
or American corporate nanagerlenf- a.
when such management is subject 10 bi,.
attackL'he greatest corpora ton in the -
unCer the leadership of J. PierpOnt VTo-,--o
MS closest associates. revealed AZ Ss5
guarding the interests of stockhOldine i--
Professional Wall Streets receptio- :,
Steel dividend surprise was quite n "a,
form misrepresentation intended n =,
tling- II is unnecessary to atteune - -
such snarling criticism They who ara -
independent do not affect suspicion -
deavOr by contortion to make vhat "a -.
encouraging seem UnheaIthful. SDecuIs1,-.
terles. carpinS, do not at all rehect TIE s-,-s.e i
the investment community. Where uatioTo7--
dltiOnS are understood. where devoted f-rs-
ship is recognized. there is ample apn-s-.--
OF what IS signtfed BY this United Stafss q
event.
And throughout the market We han,
buOyancy-thOugh toward the close OF "a
strenuous manipulation has striven IA -
earlier natural advances. But above n,
time recession was forced, there show.S y |
mediate sequel of dulness. and tnis Symptom
not be miscOnstrued upon the Stock Excb.--
II there We're no greater accOnplishmelt
disclosed that bear leadership has lost Hs -
fulneSs. that raids upOn quotations have -
70 be disturbing. that temporary sDasrs II
weakness do not produce the old phasss IN n,
terra Enforceable liquidation seems Who1y
be over.
AS TO the Steel stocks themselves one II,
that can be thoroughly counted upon b
public sentiment will be in the future IN
more responsive to suggestions Of an i.r.s.
in dividend already established than IN Ia r.
II was toward any expectation Of a new * |
Steel preferred looms among phsnczsaa
Cheap investments: Steel common az 90 lsE
TO be popularity regarded as a bargain vite
the ensuing twelve months
Conspicuous in the weeks Stock Ezchs-z
activity have been the Hartman issues. Uni
Pacific and Southern Pacific both scoring 81
stantial advances-their market impT0Venz
attended by crowding rumors full Of Fusl
Important interests have been open tuy1ls
both stocks Yet. actually. the movement b
been one Of my ystery.
ST. Paul and Northwest have both had aiVll,
ing quotations COincident with rumOrs real
them to impending Union Pacific develOpmG
But in neither OF these instances. no more d
IN Union Pacific or Southern Pacific thellsa7.
has there been disclosure of anything tang
And though some important operators h
been identified with the burst of activity in u
four stocks. though there has seemed 70 Be a
sOrptiOn OF all of them by some Of our g.
financial institutions, the truth 70 be tod Is o
in so far as the rank and file Of Wall STasi
concerned no substantial new or special re- Is
appears for the market gains which these sl 1
have recorded. So far as professional spe-4 j
tors have Joined in the movement. their Ial- i
patton has been that OF ecstasy IN elm'
blind mans buff
Ii may be that events do approach IN Il
affairs of the Union Pacific and Southern -
systems, that some of these develOpmenS
have 10 do eventually with the St. Paul. not
west or AtchisOn systems. We are N q l- =
where extraordinary fntercOrpOrate esss E
ments are impending This may soon Aot.o. i
disclosed in 1he Vanderbilt quarter ~
South too consequential rearTdnsenleAS
not merely probable but apparently ne-
hand But Of the vOluminOUs tales tlis y
sent circulating as 10 immediate Unloa -
plans. il is quite safe 10 dismiss most " =
as but foolish fabriCationS.
Wall Street is much lectUred upon tne -
gui Russian situation: but as an AHesie-l
curity market bugaboO the sad spectacs
fronting St. Petersburg is not denoralzn5
was said in this review when present -
ances were foreshadOwing; huSsla = II
hard times Russia deserves nara -,sr - ii
Investors OF France do not hold a prime -, II
in their St Petersburg investments ---ss - II
lea isn't burdened with the scrip tnat ssr ~ 4. II
OF Russia; United States credit Is ~. - II
however remotely, through any % - -
acknowledgements with which the Ia. -, -, Il
states credit amply M M'I-er-- II
the transcendent record of : per - Ss" - Ii