New-York tribune., 1906-10-28
The Financial World.

tne progress OF the dividend era Norfolk ard
Western advances its disbursement to per cent
per snnum- This action was anticipated, but
mons the less Is OF gratifying character
cursory glance at the record OF this railroad
shows that 1t has fully participated in the ax.
paasion OF recent years--is therefore representa-.
tive illustrating the general trend OF natural
business expansion II has enjoyed PennsyIva-
MIA administration and IL has shared IN the great
prosperity OF the coal business: but given thess
advantages its progress has been no greater
than that Of most Western and Southern sys-
tens. This does not belittle Norfolk and Western,
but simply keeps clear the point that railroad
growth throughout the country has been nacu.
rally uniform.
Instructive figures are to be found IN Norfolk
and Western records. Take comparisons between
the fiscal years OF 1S97-9S and 1905-O6-dases
selected because the first named Is the year OF
tho Spanish War when American development
assumed new progressiveness: for 1898 cross
earnings were S11. .236. .123: for 1905 gross earn
ings were S2S. 4S7, ,7G5. multiplied two and oas-
half times. Even more significant are the net
figures which for 1898 were S33S2 9S7. and
which for 1906 were SO $50. .4SS. multiplied more
than three times. Economy OF administration s
shown by the increase OF average tons per rniIa
which in 1895 355. and which in 1906 was
$40. Testimony TO the efficiency with which the
public has been served is shown by the very
slight increase OF the rate per ton mile; In 1893
II O.4O4 cents while in 1906 IL had increased
to only O4S4 cents Upon this small rate In
crease earnings per train mile from 81. .43l,
to $3.50. Statistics Of this character may be
tedious to the casual reader, but are OF intense
Importance to the students OF values and con-
ditions 1t is quite plain that per cent. divi.
dend basis for Norfolk and Western Is conserva-
tive policy. actual earnings at the present tina
being fully equivalent 70 more than twice the
amount necessary to pay that sum.
Wall Street received the news or this dividend
increase without a wink. Nothing happened IN
the market for the stock nor IN the general mar
ket as a result OF the dividend Increase Mega
lively this indifference can be construed favor
a0iy-Wdll Street is getting so accustomed 10
dividend increases that IT regards them
dinary routine performances-shrugs its Shout
ders and goes about its business If nothing
had happened.
But professionals do pay attention TO tenn
porary postponement of dividends the COM
stock of Pressed Steel. a secondary in
dustrial. That they proclaim is fearful calam-
ity. OF course. the stock must be sold. just as
Atchson, Baltimore and Ohio. Union and South
ern Pacific must be sold because they increase
dividends and Steel common because il resumes
dividends How lOgicali II dividends dts
asters then Pressed Steel common should go up
because it does not join the criminal procession
Money market conditions continue important,
the Bank of England maintaining the per cent.
discount rate-it being now apparent that the
Banks action concealed no sinister event-was
just plain seif-protection only ridicule attending
the theory that there is any organized European
attempt TO embarrass this country Facts stand
out clearly. This nation with a credit balance
of over half billion on a single years inter-
national trade) becomes more and more a Iornt-
Gable business rival
Yet certain English critics discussing the pres
ent situation Ioftily assume that the Bank has
acted merely the benevolent desire to check
over speculation in America. That argument
is puerile-never was there time when Amsri-
can speculation was running relatively within
narrower lines. The truth is that European
competitors for the worlds trade are realizing
the unpleasant fact that they must take inferior
rank-nothing stops increasing expansion OF
Americas foreign commerce. AS for the talk OF
discrimination bv England against Arnerica-in
the graphic phrase of Thomas c. ShotweIl, Eng
land might as well try to discriminate against
bread and butter"
Secretary Shaw's plan for new bank circulation.
meeting with general approval. IS promptly put
available when needed and retlTable wne5a not
needed is a step in the right directlon-ls me
substantial appearance IN our fiscal system or
that elasticity so much desired It's pracIcaols
working will doubt impress Congress anu
should inspire radical reviSion-So much needed
in our currency laws There Is no real scarcIy
of money in this country. With system per-
mtting expansion or contraction or the clrcu-
Iating medium business conditions may de-
mand, we should see cramping loan market evllS
corrected and reasonable rate sta bilIty possible
in the money market. New YOrk's money mar
ket has no right to be less stable than Londons-
Secretary Shaw is providing the country with an
instructive object lesson
We continue confronted with aboundins evil
dences of the development of the new era in
mining which has been created not merely by
increased economy in management, Improved
methods in business, and the practical and er-
cient application of recent scientific discoveries
but also by the intelligent and generous interest
now shown in regard TO this fundamental source
of Industrial prOSperity-interest shown by men
whose character. judgment. experience, resources
anu enterprise give proof OF real value ana time
illness in any class of undertakings wnlcn ap-
peal to their appreciation and secure their sup
port.
Indeed the paramount factor to-day in mining
is no longer the daring Spectator, out the
serious. critical and conservative man or aIalrs'
whose opinion commands assent and whose eA-
ample insures following
A vast Cepartrnent of human activity las been
hayuiIy rescued from the Odiuu which so lonS
methods Of those who have used lJS advantages
TO their personal profit IL is now me adventure
some rnanfpulatOT-nOt the cautious investor
VINO stands on the defensive. Enlightened senti-
Of view in respect to a basic Industry, until re-
Gently so little understood CT esteemed by the
general public, brings with 1t sertocs warnings
as we'll as vigorous eHcOUra cement. The Curo,
though dealing in a number of excellent prop
critics. is by no means over careful in the broad
range Of it's selections. L K looks to continued
and profitable activity. IL must exercise d1ScrtIn-
ination in keeping with new conditions.
The present is q period of instructive investiga-
ton, Of q character demanding the knOwledss
which comes from frank publicity SUbterfuS9
and misrepresentation Will more and more lead
TO disaster for those who resort to them. Sound
speculation; and. persistently maintained IN
this review. q discriminating public may now
find its day.
They are not informed they uncandid
who believe or affect to believe that the ex-
traordinary development witnessing in
the local market for mining securities is mere