New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-10
The Financial World.

| SPOhSADi0 IOr what at times has approached
market Generalization. There Is little basis 81,
such representation To a greater extent tbsD
has been known for years account is N ~
taken this week Of actual liquidation. B.,
owners Of stocks have been selling. Thuz -
declines recorded are more serious than tbs~
could be considered were they IN larger promo
J ton merely the speculative commitmeDt -
! bear campaigneTs.
/ A week ago IL was declared in this review
and no reason whatsoever is there now e,r
qualification for what then was said-that:
THE results Of Union Pacihc-Interstate Co,
nerCe Commission Investigation are had rsS,.I.
They are disheartening They are revoIti"s.
Exploitation of the public has been never g.
| exposed Not one encouraging feature appear
what is diSPriting. So sorry is the exhibst -
mean and sordid its details. nowhere under a..
| found As to the security market the efga.s
cannot he otherwise than bad The ontsSSS
! public has new reason for hesitancy and sns.
Picion- investors are put upon notice fbat
eminent names in finance 30 not stand per e.
| for integrity There is bound TO be distTugt az
disgust. They who but recently were ia 49,
and easy fashion CTiticisng President Roosaro,s
i are finding themselves hard pushed nov 81
51st i All that the President has said.
an that the PRESIDENT has done. is revealed n
be conservative" ="
II has long been maintained in this column
that this is 'the dividend era" OrdinarIIv tba
!, institution OF new dividends or the increase 80
old ones is taken as prima facie evidence ~
prosperous times, but we are now confronted
with a twisted ingenuity Of bear arrumoD,
(made to At the occasion) thar really CHALLENGE
admiration. We are gravely told that 10 Dsv
more dividends is either a sign Of weakness a.
that it betokens lapse from the paths OF conssrv-
atism-the bear theory apparently being that
no matter what railroad may earn, Il shouId
always keep its entire surplus In the treasury.
This is a novel conception.
Even Mr.. j. Pierpont Morgan is subjected IN
abuse because Southern Railway continues tba
regular payment of five per cent dividends ON
It's preferred stock. II is urged that in receut
months Southern Railway earnings have shown
some decrease True, they have but the de-
crease is inconsequentiaI in connection with
earnings OF the immediate past and with tina
prospects which lie before Southern Railway
from the immense present and prospective pros
perity OF the South. with it's great cotton and
grain crops. its mineral development and the
wonderful expansion of its manufacturing in
dustTies. And IL can be safely accepted that
Mr. Morgan has never Countenanced the pay
ment Of Unearaed dividends. When, for ex-
ample. the steel business slunped in 1903, COM
mon steel dividends were suspended-Other sim.
liar cases in the Morgan properties will TeeUr
TO anyone familiar with the finance Of recent
years The mere fact that Mr. Morgan sane
tons the continuation of Southern Railway pro-
ferred dividends will be conclusive proof TO
shareholders that there is nothing bogus about
them.
without Sinking the apparent fact that there
are disagreeable elements at present dominating
security market movement. there is no warrant
for pressing into service such a paradox as that
established dividends are harmful
Thus. we have IN counter-play prosperity
theories on the one hand and on the other dis
heartening disclosures Of corporate arrogance
ou0 T. q Of
wonder that the apostles OF pessimism should
be led 70 such distortion as that noted IN their
attitude toward dividend payments. There is
some excuse for the most morbid imaginings.
One more trouble is. that corporation uanag-
ers have been conducting the business OF their
companies as autOcrats-have not taken their
shareholders. the public, into their conf
dence at all. Have disposed OF vast assets at
their own pleasure-pOsstbly in some cases 90
their own profit The result upon the public
mind Is a condition OF irritation and dislike
which finds vent in many ways. Take. for eX-
ample the attitude OF a certain section OF the
press toward New YOrk's public service corpora
tons. There can be no sane contention that
Interborough. Brooklyn Rapid Transit or Con-
solidated Gas are simply bands OF plUnderers-
GespOilerS OF the pUblie-yet with pen and pen
Gil. in editorial and cartoon. the BelmOntS and
IsyahS are contlhualiy uspNte4 a nOusuoIs
OgTes There is remedy for this plain enough.
The conduct Of corporations should be in the
Open~in the sunlight. Shareholders should
have full knowledge OF their management, the
public should be treated with respect and con-
sheraton With such policy cIarnor would die
down-Oficial attacks would cease. because
there would be no reason for them. No one
can question the fact that American corpora
lions have been OF inestimable value in the up
building of modern pToSpeTity-theTe is no desire
on the part OF reasonable persons to perseeute
them. But there is lust. legitimate demand
that they. shall abandon an attitude made up o.
Overweening pride and contemptUOus noiner-
ence TO public opinion. II lies with the corpora
tiOns themselves to put a stop to present fric-
ton Let them adopt and maintain a policy OF
publiciry-let them even go TO the extent OF
presenting their accounts at stated intervals.
audited BY independent certified accountants
LET them be fair and square and open IN all their
relations TO the public. and they need not fear
any prejudiced action; but II they remain blind
to this situation-f they think TO reverse IL by
suddenly assuming an apparently childish can
dor in place OF prior reticence, they viii ind
that tine people are not to be hoodwinked By
petty Dretence.
Money market conditions reveal decided inn
provement. Abnormal rates disappear-frm
but not oppressive rates prevail. It Is quite
apparent that there is no real scarcity Of funds.
though there is active and healthful demand for
all available surplus capital.
Very significant Is the instantaneous sub
scription to all new issues Of merit offered by
the great corporations. either directly or through
banking houses. In every important case allot-
ments have to be cut down. And IN this con-
nection il Is interesting 20 note that q grear
international banking house deems 1t an appro-
PIRATE time TO Join I'm floating new japanese
loan in excess Of S1O0.OQ0O0O Were there ap-
prehensiOn of tight money il can be safely as
sumed that no such exploitation would De Az
tempted.
Bearing upon the money market situation IS
that wholesome step In the right direction taken
by the enactment OF the AldFich law. The OPP
erationS OF that measure cannot fail 20 ao4
elasticity to tine currency through the pro-
vision concerning the retirement OF nauOnA
bank notes. and of more Importance -
the authority given TO the Secretary OF the
Treasury to deposit customs receipts in the na-
tionaI banks. But most important OF al Is
H. H.