New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-26
The Financial World.

Reason for this discoura ging marke. situst,,,
Is not to be found in national business cona,.
tions-they stay good. The governing inhuenc.
is to be found in the colIar-and-elbow systemso,
finance that have come into fashion In IN.
weeks record new developments along N.
Union Pacific line-the example of levie. %,
new securities followed in quarters where ma
such thing was apprehended. Some of the Van.
derbilt properties get into the issuing Iine-ana
New York Central becomes the center of a sooA
deal OF speculation 10 whether or no. It vii,
become sponsor for big lot OF new stocks =,
bonds or floating debt notes. New York Gem
trails weakness gives support to expansive for.
casts. That New York Central has becoun.
Standard Oil property begins to be realized IN
Wall Street. Mr.. Stillman. Mr.. Hartman ana
Mr. William Rockefeller seen now TO h.
almost dominating factors there. That betn,
true there will seem nothing strange In extern.
sion OF New York Central's capitalIzation-to,
this trio OF alert gentlemen do not let opporsu
mites get moss-grown-
Observation-Disclosures the same control-Illino,.
Central may soon have conspicuousness Hints
are heard OF big issue OF Illinois Centrl
obligations. Mr.. Hartman has pardOnable per.
sonal ambitions in Illinois Central II VIII b
to his liking to have II develop alone Iarz.
lines and Mr.. Hartman is no nervous soul
when it comes to issuing new stocks and honda
We have excited grain markets. Wheat ana
corn both went up with a rush In the early par.
of the week Sensational crop damage tales
have been much proclaimed. So wholly profess.
sional, however. has been the demand fos
grain that almost every day when prices have
scared highest and seemed strongest there have
been sharp recessions. When finally crop meas
urements come to be made for the year We viii
probably find that pretty much everything that
OF John j. Mitchell. OF the Illinois Trust when
first this crop scare began 70 stalk: There IL
occasion TO get excited. There will be plenty
Of wheat"
That any forecasts should affect TO account
for security market weakness because OF crop
destruction talk is foolish. AS in this review has
been over and over pointed OUT there is need
for explanation Of stock market weakness OUT
side OF the stock market itself-outsde Of the
policies which are ruling with the managers Of
properties whose securities make up our stock
market. Overproduction OF stocks and bonds
and curio obligations account amply for
everything discouragfng which shows tbs
Stock Exchange Practically every conspicuous
railway corporation-or, to be more precise.
practically every corporation that has Hartman
or Standard OIL douiination-is industriousIy IN
the business OF emitting new obligations. And
1t Is impossible for any man not on the insids
to comprehend the why wherefore OF this
new capitalization game Actually-in the view
OF sober men-what proceeds in this regard
seems very much 10 partake OF the character OF
exceSses-and the stock market Is penalized.
New York Central touches its lowest point IN
years. and Illinois Central is without sign OF
support Just by way OF consequence examples
Here and there are heard some pertervid ar.
guments" touching capital and labor relations
ships. Wall Street becomes interested in sug-
gestions that campaigns are being arranged for
and against labor union domination Pools
commanding vast OF money giibly
scheduled on both sides. And many wise folk
are dolefully sure that the ensuing twelve
months will be witness OF such conflicts and
complications will materially tangls UP pros
pertty. II Is easy 10 exagserate views Of the
situation like this. So far have nothing in
the labor world newly discouraging suspicious.
High wages short hours. and employment Offer
ing for labor far beyond supply-these are con-
trolling elements IN the current situation Just a.
they have been controlling a long time past
1t may be. IN the case OF some OF the larger
railway systems. that orders TO ecouornize will.
for time. reduce payroIls. lay ar employees.
but throughout the whole country there IS such
actual crowd OF business in every department
that II is only puerils for Wall Street 70 bs
specializing that any corporation board OF d.
rectors can. by resolution or any manner OF
orders alter existing conditions. The demand
for Iabor-universal, expandng-is not by gracs
OF anybody: II is demand that IS normal and is
sources are irresistible-just the plain. simple
reflection OF widespread wholesale national pros
perity.
OF course we may have capitalization colli-
sions there may be sparring for position py man
ufacturers whose production cost is raised; thers
may be new exactions demanded by leaders
whose capital is IN the exploitation or capital
But demand and supply laws are not gong 10
be abrogated The tax which prosperity Is
paying TO labos' Is not likely 10 be lessened, anu
campaigns affecting to aim at that result Will %
entitled 10 the suspicion OF being not CONNER
cial. but political. Having failed 10 diseipnns
Theodore Roosevelt through stock market trio-
ulations and slaughter. IL is hardly probaoie
that success on labor side-lines will be any
reader at hand for the disciplinarianS
II is not at all debatable that the stock market
has become bargain counter-the trouble Is
that buyers are not crowding one another at the
counter. Four out OF five quoted standard issues
are below provable value. But. unfortunately.
1t is requiring something more than what
is ordinary to attract the investor. Later-and
II may be not far hence-we may have buoyancy
resulting from activity: but for the present theFs
Is Indication of such thing.
We hear much about the big short tnteress
which at any time may become nervous ana has-
ten TO cover. Scant basis for market connoehce
is there In anything like this. Short covering
influences are tempOraTy-Sequels 10 them S17
usually disappointing.
In the new departures OF corporation pohet
coming now into popularity-issuing securities
to the utmost limit-it is not to be hastily con-
cluded that such operations are always witnou.
HI