New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-11
The Financial Uorld.

limit Of manlpulativs influence For ne, ras,,,
the market shows an almost unbroken ljst \,
advances. The dark lantern. the Jimmy -
the sandbag seem losing their market srfsc,,,a-
ness. Business conditions finally command =.
tention - respectful attention even IN Ven
Street
Consideration OF the weeks events fba 49,.
over compels confirmation OF confidence r..
Importance attaches TO the peaceful ssttla
ment OF the Moroccan question. Happrv +ns.
menace IS past-pressure Of international oft,
ion forces common sense settlement rrba..
will be no war-there will be rational a6ips,
ment. The first effect OF this was felt an -.
London Stock Exchange, where prices fnrs-
diately grew strong. And II Is notable that -.
strength most apparent in-was act,,alf
led by-American stocks. The tension over-,h.
threat vanished-European attention was sravv,
Immediately to the securities OF our countrv
which in times OF either peace or war are N.
most profitable and the safest investments ma,
the world offers TO capital
And another immediate result Is the Iows-nz
Of the sterling exchange rate TO point vhsra
negotiations for gold imports begin. II Is Ger.
tain that IL our own enormous activities compsI
an unusual OF available funds at home ",
can draw what need from abroad
The exception to the general movement OF IN.
week is a decline OF nearly six points IN R.aa.
Ing. But, after ALL there f. nothing 10 wor,v
about IN this. When this bull market startss
in the latter part OF 1908 Reading was becr
90. 1t has this year sold at 1884, and is nov
selling at 129 Those who bought it around n,
highest level may consider that the stock IA
weak. but viewing its movement IN tha Iouz
sweep there Is scant ground for disappointment
Everybody knows that Reading has become
property Of almost inestimable value It's eon.
handing position in the anthracite trade IN
sures its prosperity. The trihing dividend OF
per cent per annuyn which Il Is paying Is Alto
gether out CT line with what IL IS earning ard
! with what IL owns
OF course, coal strike would be an undass-.
able event but II would not be the fearful ca
lamity which Wall Street bears picture f.
March snOwstorms soon melt I'm the sunshine
all this menace OF coal trouble will succumb 20
the genial rays OF the sun OF prosperity.
There has been frequent comment IN this col
unn concerning the very strong position OF tbs
cheaper railroads. Proof piles upon proof cert
flying TO their merit. Nor is their prosperity
local Every section OF the country shows
similar growth. In the East f. Erie making
a marvellous record OF earnings Advance IN
formation OF its February report Is that Il win
show an increase OF one million dollars. In the
South Is Southern Railway. which for the first
six months OF the fiscal year. a'ter payment Of
all fixed charges and preferred dividend and
after liberal allowances for beJterments presents
surplus equivalent for that six months 70
nearly per cent on the common stock. IN
the Far West are Denver and Colorado South
eTn. forging ahead In sturdy fashion. Thess
illustrative Toads-and they typify long list
are surely approaching the dividend line.
It IS semi-oficial forecast that this year
win see the establishment Of dividends upon
Network. Chicago & St Louis nickel Plate
common stock.
On the basis OF the operating expense ratio
for the closing (the most costly quarter Of last
year, earnings were shown upon Nickel Plate
common beyond per cent. Normal bookkeep-
ing would make the showing over per cent
and this after the full allowance OF per cent
for both the first and second preferred issues
Nickel Plate common, advancing several points
this week, seems now on its way to par
When the market rights itself-as soon GER
tainly II must-'ve viii not lack activity; thsrs
Will be ample strength. All business conditions
are working toward this accomplishment With
a satisfactory market situation. with continuing
evidences Of prosperity. the American security
market Will stay neither sUllen nor slothfuL
Little. peevish pessimists OF the Stock Exchange
Will be lost in the tide Of recognized bettermens
-sneeFs, innuendCs, fables, Incapable Of market
decentralization
Much may depend upon Ieadership-much
more upon business conditions. There Is mora
power in the increased earnings which the rail-
reads Of the country are uniformly showing
than in all the captaincies that Wall Street ever
has dreamed OF. Proof Of this is likely to appear
soon. for example, In the Gould properties. No
leadership figures In that quarter. But Mis-
souri, Pacific and Denver and the rest make such
strides in earnings that Intrinsic values are far
outrunning any records the market Yet has
scored for them 1t is fashionable TO be bsarish
upon Missouri Pacific. but I believe &c win sell
UP 20 points within the next few months: and Of
cheaper western railway stocks especially az
tractive is Mr. GOuld's Denver and Rio Grands
surpassed IN its prospects only by Colorado
southern, which, under the management OF
Edwin Hawley and 3. T. YOakUm. is in for Phe-
nCmenal observation-disclosures Southern common
stock bound for dividends.
Disappointment Is shown by the raiders Of tbs
market over their inability to knock down and
keep down the market price Of American smel'-
ing. National Lead and the other Gugsenhein
properties They have given circulation to VI
cious ISLANDERS to help depression campaigning
along; but disproor Of their falsehoods was
easy and market rallies spontaneous. The Leaa
deal has not coIIapsed-it is accomplished. ready
for announcement along with disclosure Of on
cial statistics which viii show National Leads
value higher than any figure which IN the mar
ket has been yet approached.
The same manner Of attack used against
Smelling and Lead-just plain. easy going lying
goes gallivanting into the affairs oS the New
York traction corporations. whose merger pro-
gramme challenges the attention OF the sans
old delectable crew which has often during
the past decade sObbed over public Sacrnees
while seeking private settlements \ lar5s
short interest has accumulated in metropolitan
issues. And chiefly II seems TO be based on tas
theory that Thomas r, Ryan is a child, IN need
Of a guardian. He isn't