New-York tribune., 1907-01-13
The Financial World.

Pennsylvania railroad fnancfering gives Wan
Street this week chill-such frigeration beconn-
ing almost continuous Pennsylvania perform
ance This time S2O0.OOO.O0 of new securities
are to be catapulted against the market Amaze
ment not only found reflection in the immediate
shrinkage Of millions in market value OF Penn
sylvania securities themselves. but the entirs
Stock Exchange list consequentially weak
ened Many explanations are provided. none OF
them satisfa ctorily official In the Wall Street
view Pennsylvania was pledged against further
security deluges; and the offhand announcement
OF this tremendous new utterance had market
effects and results as natural dispiriting.
It may be that are having merely logical
working out Of those stupendous comprehensive
fdealistic plans which lowered vaster and vastar
throughout the administration of MIR. Cassatt,
whose untimey taking off was not less than
tragedy for his own corporation Nowhere and
at no time was there ever nttieness In Cassatt,
His thought was In tremendous units: his activ-
tiles were ever those of the Titan; and that
there can be innuendo with excuse. involving
that man is but the intrusion OF uttermost petit
ness Assault upon A. ]. Cassatt will not make
great men of would-be successors to the posi-
ton or the powers OF him. Not merely is II
baseless that he made no forecast Of further
PENNSYLVANIA requirements. but Of clearest
ord Is the fact that he did forecast such re-
quirernents. large and expanding. Unimportant.
though Is dispute or discussion Of this; beyond
doubt or question qualification looms the
disclosed certainty that Pennsylvania develop
ment necessities present and real. big and
urgent. Any other situation would be amazing
Such development az IL Cassatr-Pennsylvania
development put ofrhand arbitrary lirn-
itation upon itself; and final splendid consuu-
nation must stamp relative insigntncancs upon
any temporary intrusive embarrassment
With brave worthy Cassatt successorshtp,
Pennsylvania will round out iGs Atchison abb
sorption plan-become system nc longer
tional but national. connecting coast with coast
Wall Street discussion OF new security issues
is strangely one-sided. 1t regards them solely
from the point OF burden the market-does
not stop to consider why such issues are called
into existence. Primarily. new bonds and stocks
are put out to obtain capital-that capital Is
used to develop Ae physical system of the bor-
rowing railroad Railroads cannot stand still.
Tracks and equipments of ten years ago
wholly inadequate for the hand ling of the traffic
OF these times Take agricultural tonnage alone
the greatest crops ever raised ali find markets
and. aside from such portion as is consumed on
the farms themselves, become freight traffic.
being burned up fuel. Ten years ago the
farmers of the country were heavily in debt
were buying nothing but the necessartes OF life.
and even those scantily. To-day there is no
more prosperous body OF men in the world than
the American farmers. Not only does all that
which they produce come to be hauled, but they
are buyers a large scale of every kind OF
manufacture. creating thus large return
traffic. great hue and cry goes up when there
Is freight congestion. How freight
gestion be averted without proper trackage and
equipment? And how can trackage and equip
nient be supplied without money? Herein -
the simple and all sufficient reason for issues
OF these new securities
the country's development. It Is doing An
illustrative example is found in the rapid strides
OF Southern Railway. This system. redeemed
from wreckage by J. Pierpont Morgan and built
up by Samuel Spencer. Is doing much to aid
In the growth OF national prosperity as any
single agent. Railroad growth not only supplies
the absolute needs of existing population, but
OF itself attracts new population This will oe
the various extensions Of existing roads TO the
Pacific Coast shall be completed In brief. only
to small minds can come the idea that addition
to railroad capital is OF itself necessarily evil.
OF course. each case must be judged on It's own
merits: but II can be asserted without fear OF
fair minded contradiction that no recent issues
have been for anything but genuine investment
purposes-eonversion into earning assets. Such
financing need alarm nobody. It has to be.
Pessirnisnn. Of course find excuse always
for criticising sneers. To professional bilious
ness there 10 never the possible discovery OF one
ray OF hope: but only foolishness attends on
slaught upon corporations because they pro-
ceed comprehensively to finance their needs.
converting prospect into prosperity. The list IS
long Of expanding American railway corpora
tions that h, ve to take cognizance OF the future
Central, for example which during the past haIr
dozen years has been obliged tremendously to
while not yet realizing such net results as might
fairly be demanded IL immediate sequel OF en-
hanced profit be the requisite. And Iowa Cen
trail quote but as fair example OF long list
Of progressive independent properties confronted
by problems far out of the ordinary.
Yesterdays bank statement was good Sur
plus reserves increased largely. In naturalness
there Is seasonabls lending volume OF money
due.
When the general market strengthens we will
IN all proba ability have leadership by the indus
trial list; and in the Industrial department prop
critics which should be most conspicuously strong
are those IN the metal and mineral group
United States Steel premier OF all.
Trade facts are always bound ultimately TO
have the sequel Of market reflection. BY way OF
exempliication Is the copper metal situation.
1t has reached and holds range OF price IN
known before except under artifcially cornered
conditions. The present rise Is straightforward
ly increased demand for copper IN the building
OF electric railroads and the phenomenaily ex-
panding output OF electrical appliances. Chief
beneficiary OF this situation Is the Amalgamated
Copper Company, the holding concern for the
most important mines In the country. That this
Is beginning to dawn upon Wall Street Is svt-
dent from the steady buying o. that stock and
the list OF reputable lesser properties-Mitcheu
Mining conspicuous among those OF the high
type having small capitalization. And IN
the case Of Amalgamated there Is at least hope
IL not warrant that there will be further IN
crease of dividends IN the future. But.
has not yet found due reflection IN stock market
quotations. Nobody expert In the copper bust
ness can throw doubt upon the conpany's ahil-
ity TO maintain the present per cent dividend
indefinitely. There can be no backward move
ment in Copper for a long time to come Anal
gamated officials state that IL will be impossible