New-York tribune., 1907-12-15
The Financial World.

In this weeks market there have been few .r.
couraging inf1uences-if records of the Stock r.,
change may be taken for barometer. Pessimis,,
has ruled Quotations are down All the talks
tive legions distribute doleful tales To be hon.
full is to be target for sneers. and the man who
dare declare confidence invites suspicion Of hi.
sanity.
Yet of actual Developments TO be regarded
as demoralizing not is disclosed. Two or
three dividend declarations are dsappointiny.
but. offset. there betterment evidences In
fundamental business conditions-and as to divi.
dend disturbance wnat shows is that controIlfn,
factors have to do with special localized Ella.
ments, not construable at all representative
of the business situation generally Western
Unions sensation, for example. reflects compi.
cations having to do wholly with that corpora.
ton itself. The telegraph strike is explanation
enough.
Western Union, though ceasing to be a cash
dividend payer, cuts a new strange figure. The
stock for dividend criterion has years on years
been recognized standard for conservative
measurement. With barely two exceptions
Western Union has ranked as the premier in
vestment stock Of the United States-whatever
might happen elsewhere it's distribution could bs
counted upon; however there might be doubt or
disturbance as to other stocks Western Union
market values were sure of stability. Thus 1t IA
not Of triling consequence-cOnsidered broadly
marketwise-wnen. in lieu of cash, Western
Union directors vote to distribute to their stock
holders not merely script. but script at heavy
discount and by this very vote that script dis
credited. OF all developments not directly IN
volving bad faith. this Western Union dividend
incident is perhaps the most discOuraging OF any
that has helped along the current campaign Of
credit discontinue
Yes doubtless balance sheets warranted
even demanded-departure from the established
dividend declaration But II dividend be not
earned why affect to gloss over exigeucies by a
stock watering performance? The usual divf-
dend was not earned-officfaI figures show tho
fact that outstanding stock Is not (out Of earn
inrs) entitled TO a dividend. Wherefore then,
should stiu more stock be issued? Such finance
fnfrfnges the copyright OF the lamented wilkins
Micawber Esquire.
Ahead of its dividend action the stock de-
cIined stbstantiaIIy-On what may be regarded
as selling for INSIDE account; and now ths
ag,,re is much below any recent level; but IN
the ordinary nature OF things it win probably
sink further.
Other dividend crises approach New York
CentraIs directors are TO act within the next
few, days. There, too, earnings are bad enough
tn be compelling; and II can only be for tenn
norarv strategic reasons that the regular
dividend can be declared But. though some
other corporations (Atlantic Coast Line ror
example, follow Western Unions compoundlns
nIan New York CentraIS controllers are nardIy
likely 10 attempt any straddfng performances.
W x Vanderbilt James Stillman- William
rockefeller and their associates do not usually
dodge responsibilities New YORK CeIitraI on d
4 per cent basis might be justified
Sugar shares show sharp decline, almost
every professional trader on the stock Ex-
change taking a bear position on that stock for
reasons that make a long, lugubrious hs'-ths
co,,,anv.s loss through the demise of President
Havemeyer. the prospect Of governmental pro
cesures. the shrinkage Of earnings because OF
hard times economies And for these ana aouh-
5ant other "arguments'' there might be soma
warrant: but what an independer- outsider DIS
covars ia that the chief sellers of stock are not
the ovvuers OF stock but spectators borrowing
for delivery, quotation raiderS-allhost eAS.u
sively: and the price drop reneG's 10, ih "a
tion but short aCCOuntS-SequeL 20 "HIcH .
likely 10 be a sudden squeeze. a raIly anu OedL
rout Just one thing the shorts nave IN me. ne
favor-a constrained money market Wnlch may
induce friends OF the stock 10 pc 4els~is.I - -.
their campaigning. though 1t Is Wen. uI'Iel - 81.
conditions TO mind the fact thar SUGAR ~ $50
has become almost as well dlSIributeu aIloH5
investors as Western Union IS. or New Haven
and Hartford used 70 be-
1,,arestfnz- things come TO pass in New YORK.
New Haven and Hartford affairs No other co.-
poration of similar consequence has eqIa-y SUI
fered II hasn't required outside panic Nlla-
ences TO modify values there. and II ls not, per
hans an occasion for surprise tnAt wan 1'-0
hears OF an impending adminlstTSatn = .. @ ~
which may prelude such cnanEeu pult.-C pu.ia and
save the property loss OF former pFeStLEe E-S.
nrospertty some hints have 1t that Ne" sSr1 Il--s
president may be invited to oeeoiHS p's
OF Union Pacific
Illinois Central affairs. stin az the 'front.' has'
aavs1oDed no new exceptional sensatioraiisn' ms
waeL though affidavits and arguments III OO~
at Chicago make interesting reao1iS "
vestors who find Mr.. StuyVesahI I ISL - -
ads,inp the force of some OF the aveFiiie4'' 80.
his co-trustees have made II Is ci9'o Ida
many stockholders have changeo tHeii . .hs
since recent disclosures Whether :, .ovss
election scheduled for next Neuii'9"1 been
place. the current contest VIII ho- "a bs
r.,,it1ass One certain fact would seem mn.
it. - COZ, hardly be large damage 10 IL
- C,artra1 through a Union Paclnc alr, iHto ths
nor,nared with the property pdsSlN9
control OF Missouri Pacific 7,r,as+ 10 re-
what $50 tonrth their attention and supPJb % bs
1yiII be in the measure OF p[oL,i +ssts of what
nroduced And Cby the actae-l . 81 tally shown)
pi.aad,r has been DONE what Is oHiS his asso-
L Sord of President Harahan anu -,, many
ctatas reveals results producSd - ttat opponents
ways superiOr-such good obIjced to confess
an5 critics are themselves oI{Sed the issue
ne ahe exhibits extraordinary or rseT relative prOar
some time ago ceased To liivoI liivnS bv antagonists
pTo9qcinA @ Aarahan into controversies, indie
tecbnicaIties. And into sush be- excused for
nandent stockholders may iA'-'
hesitating 10 foho"'
,,onsv market conditions are not ,ns''s sOms
MONEY Mons tndred by superficial indications .DDrs-
s.r.,,t bankers seem still iheii ,- ths