New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-31
The Financial World.


frantic spells are fswer-but anything a.
preaching complete recovery may be much ~.
pOned: for the malady Of brain FIRE ana vsa,.
ness and hallucinatiOn Is ever persistent a.,
treacherous. There win be all the more str.ny.t
a clearer system. and sturdisr health. say 81,
physicists
Many stocks have rallied materially Yro-a ~.
depth OF panic figures: but the stiu Records
shFinkage runs to aggregates stUpendous-.or0.
specific illustrations devastating. Tho straa.
is crowded with chronicles Of distress. ~,
Stock Exchange has been a shamblss RI.
nauseOus Is the persistent proclamation ~.
the havoc Is universal and that no strength !,
all remains IN the investment world. such non
sense stuff is contemptuOus Of facts the ma..
manifest But 1t is doubtless far beyond POM.
lar appreciation to comprehend how great hav.
become the private fortunes Of the UnIrsa
States-fortunes apart from ordinary stock mar
ket activity, but aIertly watchfuI for whatsoav..
opportunity may disclose Investment bargains
And the staunch way In which bankers ana
Stock Exchange associates hGvo faced cat..
trophe attests sOIidity and integrity incor.
parable. Where else In the whole world Is tnsr,
a corporation, for example. that could In M.
year stand-as Union Pacific stands-a a.
cline Of tens Of millions In treasury assets rc,r
eident with almost doubling its dividend ala,
bursements? u Is not IN France. nor n Ger.
many. nor IS II In Great Britain. that one rau-
road exists that could for one day stand ey.ps
single Jr~ion Pacific item-lilIs that. for fus.on.
instance. OF calmly surveying investments III.
New York Central shrUnken from S19,6OGOeo 4,
s16.39OOOO. holding Of Illinois Central worm
s25. 100000 against sS2.6OOOOO paid for It. bar
gain like Baltimore & Ohio common down rror,
over SS5.sOO.OOO to less than S3O.sO0 OOO-an this
these but examples OF percentage losses tHrouzs
extended groups. one officially compiled list re-
cording a market value depreciation surprising
s23.9OOOOO
Such exhibit makes any produceable Old
World comparison babyish. Yet are Mr.. Hart
and his confreres cast down? What ruor
impresses them is that the government ought 10
become more scciable. It may.
In the present situation there is poteutl7H,v
in another factor-one which in ordinary s.f
satisfied moments Wall Street habitually ignores
the factor OF that overwhelming prosperity
which has become established throughout the
whole country. AprOpOs OF this. signifcancs
may be found in this comment. made BY John
]. Mitchell. the premier banker OF the West:
The great decline IN prices on the New York
Stock Exchange showed how much the country
has grown beyond Wall Street There was
time when Wall Street was nearly everything
but that has passed. The declines OF the DAYS
the market was going down had no appreclabls
effect on the Western general situation Wan
Street has come 10 be small part Of the eOun-
try The doEgs in the stock market there are
regarded with but little more seriousness than
would be a furry the Chicago Board Of
Trade. I am speaking, Of course. in bread
terms"
The theory Is expressed by clear headed stu
dents OF the market situation. that stocks IN
their volume have drifted anew into the hands
OF the strongest capitalists; and. OF course ex-
hibits OF this theory lead inevitably TO the ex-
hibition OF increasing market strength-for as
they who had to sell have sold. they who have
been able to buy will be able to hold-they who
without stocks helped declines may now as the
heaviest holders Of stocks help advances. In
the opinion OF those committed to this calcula-
ton. the market after its drop OF from twenty
five to one hundred and seventy-fve points is
entitled 10 rally that is substantial. And such
calculations are attended BY the belief that there
now exists a greater short interest than Wall
Street ever before knew. This probably is ex-
aggAFation. But that the short interest Is tn
many parts Of the market widely extended cam
not be doubted.
And what can happen 20 such shorts IN mar
kst of live wires was somewhat illustrated in the
close OF the week by Canadian Pacific in jump
OF fifteen points with hardly fractional recess
sion. one suddenly eminent ChicagO-LakewOOd
dnancler. procaiming addition of S1.00Q,000
per day as profit upon the bear side, comes into
the attitude OF reaching out for sympathy.
What the Chicago gentleman and some others
were not quite cIairvOyant enough 10 cOnprs-
bend that the 10000 shares of Canadian
Pacific which fortnight ago appeared IN Wall
Street as il all ready for liquidation but
bait-canny gentlemen at Montreal lending the
stock out here TO Skeptical parties willing TO sell
II short low l55-this weeks closing being
we'll on toward twenty points higher and those
Scotchnen up Canada way demanding their
leaned stock back.
Quiet hints are heard in important circles OF
other cOups quite in the Canadian Pacific way.
One is forecast in Union Pacific another IN
PennsyIvania still another in Brooklyn Rapid
Transit Such contemplation has To dc. how
ever. not 50 much with the intrinsic value OF
the stocks in question as that exceptional mar
ket conditions are developed in them In some
of these stocks it is certain that one forceful
group Of finaucierS is preparing for aggressive
ness There are interesting suggestions or th5
election OF Norman =. Ream as security market
representative OF Standard Oil interests.
Erie is not the hopeless thing when All me
punditS are pTOclaiming. and American SIlsltinS
shows at the end Of the week strength nlGeh
in contrast with the wisdom OF the curD-
though II is semi-ofIiCialy forecast that there
IS to be government investigation OF ths
Smelling Company.
When finally the market settles down to what
may fairly be considered normal il would seem
probable that heartiest investment interest VIII
develop for the lower priced shares-the list belHs
long where there is assurance OF expansion nom
prospect into dividend prosperity. Some sucn
stocks are selling now at figures utterly IN
fling beside the intrinsic value they Tepresens
issues like Bethlehem Steel. Hooking CoaI an
Republic Steel among the induStrials, ana 5Lle'
Southern Railway. Texas Pacific. Mexican zen
trail and Kansas City Southern among tle tel-
rOads-Cit1ng such examples merely for tlusIIe-
ion uOI v-ufc Of Nn stir ION Of