New-York tribune., 1907-10-06
The Financial World.

a
through which stock like Canadian Pacific is
in a jiffy. boosted a dozen points upwards-and
similar movements are attempted the con-
trary side: though quotations. following our
long period of liquidation. are much less re-
sponsive to bearish than TO bullish adventures
In so far as investment interest is concerned
the security market is actually becalmed Com
mission brokers still report absorption in small
lots by buyers who. for the most part reside
distant from New Tork-are disassociated from
direct Stock Exchange relationships. But in no
substantial way is there any taking over Of
either stocks or bonds for the account or IN
vestors Of the first rank. Such interests seem
quite content to wait
Nevertheless upon one phase of the situation
there is agreement among all authorities-that
| there is constant accumulation by small invest
ors. This is not mere assertion but is proven
by the transfer books of company after COM
pany. Indeed, in the case of one railroad the
managers have found it necessary to antedats
their dividend notices twenty days because Of
newly added clerical labor involved in writing
checks The clear meaning Of this is that the
smaller capitalists of the country begin intelli-
gently to comprehend that security prices ara
unduly depressed; and with the courage OF their
convictions are investing in American bonds and
stocks. There could be no stronger market bull
wark. Securities purchased pass into owner
the wild winds of Wall Street
With the present hurly- -burly concerning cor
porations daily dinned in ears. it is instrUc-
tive to note the development of intelligent COM
prehension of the situation the part OF the
public-as notably illustrated in a meeting Of
New England stockholders of Illinois Central
held this week IN Hartford. These stockholders
met and discussed the affairs of their company
with an understanding Of the situation quite as
acute that Of any railroad officials And.
without entering into the merits OF the contro-
versy between Mr.. Hartman and Mr.. Fish, 1t
is gratifying 70 record such alert and indepen-
dent action Too long in our country has the
stockholder been but Of the blind following the
blind Too much has been accepted as mat
ter OF course. Too much latitude has been
given-and appropriated. New England is set
ting an example which be prohtably fol-
lowed throughout the country Let stockhold-
ers meet and assert their rights and actually
cast their votes in person or by proxy at annual
meetings and the reign OF the speculative di-
rector forthwith terminates Legislation is less
needed than active assertion OF property rights
by actual owners. In so far as current discus
sion and agitation have educated the popular
mind the result must be ultimately beneficial
the whole trend or business affairs must be
toward faithful. honest lines OF administration
and genuine trusteeship- Indifference has per-
llCted abuses
ished-by public pressure There is nothing
political nothing OF demagogtc character. in
the plain business action Of these New England
shareholders-in the UnequivOcal language OF
the resolutions adopted at Hartford there IS
readiness for "the creation OF a public senti-
ment that will exclude speculative control from
corporate management
Basic conditions continue healthTy strong
There is crop assuredness for this year Heavy
t. rfro
price TO the farmer close TO a dollar bushel
while other grains are correspondingiy high
The much heralded shortage OF cotton proves
to be a fallacy; there is abundant harvest
and abundant demand Railroad earnings
up TO the end OF September continue 70 show
handsome gross increases though the net In
creases are apparently somewhat diminished
! under the new system Of bookkeeping ordered
by the Interstate Commerce Commission
But there are unmistakabe symptoms OF re-
action calling for caution and conservatism
The drastic cutoff in copper production and
the reduction in the price OF that metal have
not Yet induced buying on anything but hand
10 mouth scale. OF course, this will right IT.
self in time but meanwhile other reductions in
copper company dividends must be expected TO
follow those already made However. concern
ing the copper stocks it would seem that recent
declines have discounted trade conditions.
1t is credibIy estimated that shrinkage Of
| 25 TO 80 per cent. has occurred IN orders for
future delivery OF steel products There is moth
ing astonishing, nothing unforeseen. in this-the
actual condition OF to-day having been accurate
| " forecast three months ago by Judge Ebert H
Gary. At such recession the steel business
remains highly profitable nor is there the least
threat TO existing dividend rates on the stocks
OF the Steel Corporation and the larger inde-
! pendent companies. SURPRISES piled UP can
withstand temporary slackening OF trade And
precisely this condition testifes to the wisdom
of the Steel Corporation management for the
last two years in devoting vast profits 10 estab-
| fishing new plants and extension of old ones
| while coincidently growing financially strong
| beyond compare.
General trade. according to mercantile agen-
| cies. while somewhat slow here and there main
| tainS a prosperous average
| It is not TO be gainsaid that as the year pro-
! ceeds. with the security market benunbed there
| develops element of anxiety in prudent
quarters-ultra comprehensive observers appre-
/ hensive that as the result of money market
| exigencies some OF the great powers Of the
| country may feel obliged to cut down payrols
| 10 such extent that labor troubles" will be
| threatened. This theory Is to some extent based
upon the policy credited to Standard Oil finan-
! ciers. some of whom get Wall Street quotation
TO the effect that election years are frequently
hard times years" If calculations like this have
actual foundations there is. OF course. ample
reason for excessive carefuIness on the part Of
| the business public. And consideration attach
| ing to this theory finds illustrative emphasis in
the current news that one corporation at Schen-
ectady, in this state lays of 5000 men this
week while another company. in Illinois. let's