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

| transactions by no means insignifcant-in SOM,
| conspicuous stocks totals running beyond aver
| age aggregates; and each day seems abba ~
provide some incident out Of the ordinary Tha.
the security market has been abandoned Is NOT
by any means true much of the currents
comment might suggest. We are not having
million share days and there is tempestuou,
manipulation showing anywhere: but the rec
ords are in no sense incOnsequential.
II may be that the public is holding aloof ana
that IN very large proportion the recorded trans.
actions for the account of the professional
spectators OF the Street; but whatever tbs
origin. there is business-and it is OF a mag
nitude which barely a year ago would
have been regarded as very substantial by Wall
Street itself.
Union Pacific holds the centre OF the stage. Iri
advances materially-is almost the only PROM
inent stock that. far has risen from the panio
price level down TO which the March market
quake threw the list. Incidental TO this Unions
Pacific activity and strength much mystery II
bred. The stock has been advancing with an
almost daily regularity which 10 many observersi
seems to indicate that the progression is due TO
the operation of pool machinery. That there Isl
pool in the stock and that this pool Is power
full is undoubtedly true That. however. the
performance is merely for paslime will nos
| appeal TO people who are acquainted with those
! financers who have to do with Union Pacific
affairs. IN out OF the stock market.
Astounding theories are quoted to account for
Union Pacific buoyancy. Many curious.
Some are extraordinary. Wall Streets imagina-i
ton does itself full justice in the guesswork
exhibits on parade In variety we hear OF new
millionaire alliances. new syndicating proposals,
new banking institutions. new local combinations,
international undertakings: and heard also
are myriad tales of old feuds settled. new part
chiefly suggesting that (whether spring-time be
backward not) the dog day silly season Is in
Wall Street we'll ahead OF time
Union Pacific as 10 per cent. dividend payer
belongs above 15O. Selling for less in a normal
market be justified by criticism that
gives the propertys management credit for
either business sense fair dealing BUlwarked
by official 10 per cent disbursements. market
pool challenges no surprise In being able 10 give
Union Pacific a Hft-such pool able to COM.
mand the resources Of z. II. Hartman and Nor
man B. Ream. H. II. Rogers. Henry c. Fric<
and John W. Gates. What is strangest is that
such pool can show much moderation. (And
incidentally 1t may be OF popular interest To-
learn that the Union Pacific pools personnel IS
similarly committed TO a number Of other stocks
one being Southern Pacific. another Readins.I
another Baltimore & Ohio and still another.
Brooklyn Rapid Transit)
Much ado Is still made, Of course. over 'ths'
Washington attitude toward the railways. Sons
of the vision makers are exceedingly doleful Oh.
this account They are sure that exterminat-l
ing processes are right ahead. So much OF poI-l
itics touches this sort Of thing that ordinarily
observers may be pardoned for not becoming
excited over the gruesome predictions. OF vari-j
Gus new developments IN the corporation world
and particularly as 70 American railway affairssl
none is more clearly manifest than that ours
railroads deserve now less criticism than ret
Gently accorded them-and the only good reason
for this IS that the railways have put them-l
selves into a changed attitude Reforms that
used to be sneered at as foolish are operating
now: rebate scandals disappear: old fashionedl
contempt for government supervision and regu~i
lation has ceased it's soothing; railway laws cease
TO be jokes. II is unfortunate that In the crea-i
ton OF this new situation II has been unavoid-d
able that some regulations should be sacrificed
that scandals should be exposed but that pricsi
has been paid: and any fair canvass Of CURRENT
conditions makes IL clear that not only much
evil has been uprooted but that there is replaces
nent by what is wholesome and law abiding
that graft kicked out Of the way makes room for
progressiveness and broader prosperity. Great
corporations formerly administered for the ad-
vantage OF the millionaire few will henceforth
prosper the many-be worked" in the interest
OF those who are actual owners. the investors or
the country And amount Of pessimisdo
harping upon the representation that Wash
ington influences are aggressive can in the mind
of any reasonable student of the situation raise
one lot or little OF doubt that what has been
accomplished ia tremendous - tremendously
good Millions that were wasted more millions
that were grabbed. can go now into legitimate
channels-can count for dividends
Stress is laid upon bad showings some OF the
larger railroad systems are making IN their cur
rent earnings reports. Large gross increases
shrink into insignificant net figures. Theorizins
like this Is indicative OF depressing influences
developed in the general business situation: and
the market at the close of the week has been
put under considerable pressure-seiIers Of
stocks influenced by exhibits like those Of South
ern Pacific. for example. reporting a March
gross increase of SI.I0O00 turned into net
decrease OF over s56OO00. Southern Railways
March increasing S144 900 and It's net 'decreastns
S49S.OO0 with New York Central for the frstt
quarter of the year decreasing net earnings 81
100000 despite increase of half million IN
gross 1t is argued that this extraordinary dis
parity between gross and net returns is directly
traceable 10 abnormal expense conditions the
cost OF labor and materials rising 10 Inagnitudes
never hitherto approached. Something is TO be
said in Justification OF this Judgment But in
formed critics understand. OF course, that this
years March exhibits are not normal ones. Much
OF the expense expansion is temporary. Mona
the less in the cost of living appears Cps
OF the chief problems which railway manages
ments being called upon To face And il ia
not easy to foresee any early agreeable solution
TO of the side issues thus involved