New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-03
The Financial World.

Many stocks fell largely, quickly, without sans
explanation whatsoever. Theories were plenty
of course; but fair, straightforward. reasonable
justification of what at times approached semi
decentralization forthcoming nowhere. Some
curio commentators dispensed weird recitations
concerning the President. his plans and prepare
lions to prosecute solvency off the face OF the
earth. Competing fakirs retailed unCtuous con-
idences of how Mr.. Rockefeller and Mr.. Nor
gan. Mr.. Rogers and Mr.. Foraker. Mr.. Harri-
man and Mr.. David Lamar (sOme. or all. but Mr..
Lamar, anyway were about to rise and forth
with abolish the whole Administration outfit Il
was a gabfest to cast the heart OF any old insane
asylum into gloomiest envy.
And the text and Numbering and deep desols-
ton of all hands was just this-that the people
of the United States are in the midst Of pros
perity-universal. unparalleled. unbrOksn and
unbreakable.
While mani. llation to produce smashes was
fiercest we were served with delectable doses
from Critics abroad. who were sure that our
securities had been so shamelessly overlooked
that national wreck could only by miracle be es-
capabIe-the London outpour Of Conservatism
especially copious Comic strut could scarce
amble further. II any boom has recently bean
entertained here it has been a strangely coy and
wondrously modest creature; nobody down Wall
Street way has been able TO detect or locate or
come into contact with It. Relatively considered
standard American corporation shares ara be-
low-materially below-any hitherto known nor
NAL level Never mind words. scan the figures,
but especially consider how these current de-
pressed market prices compare with what are
the going quotations for Investment issues on thu
other side Of the ocean-and take ultra critical
conservative condescendiug England's own fore
most list for such comparison.
High grade. gilt edged English railroad stocks
OF seasoned safety cannot be bought at EtceS
which win yield much more than 3 per cent on
the investment. Corresponding American rail-
road stocks. equally safe. equally gilt edged, can
be bought to yield around per cent. And apart
from this arithmetica question Is the question OF
future expansion. 1t Is certain that English rail-
roads cannot increase their business in any great
ratio. Their sources Of traffic do not afford op-
portunity for extraordinary growth. Population
increase IN Great Britain Is limited, and COM
mercial accretion cannot be more than moderate.
How different the conditions IN the United
States. Population leaps here by bounds. Trade
expansion Is Observation-Disclosures only BY pro-
ductive capacity. AS regards railroads. they ara
the final benehciaries Of material development
Large crops, immense Industrial output. -four
ishing commercial interchange. all find result in
increase OF railroad traffic. The outlook for
American railroads Is for constant Improvement
of business-indeed. the problem now presented
ing requirements. And herein "a explanation OF
current railroad financing.
English critics Of American prices do not grasp
these facts-thsy attempt to measure miles BY
yardsticIs. Never before have such tremendous
possibilities presented themselves to American
railroad development. The waiting commerce OF
the Orient calls for vast new service 10 tbs
Pacific Coast-quick business response COMING
from the HILL Vanderbilt Hartman and Gould
fvNa
narrow minded. There is no way 10 handle
Oriental commerce and incidentally 70 create
new population centres IN the Far Northwest ex-
Dept BY the building Of railroads Capital in
vested In such enterprise is certain to find ade-
on observation-disclosures remote chances-the
trade exists. To England's theoretical criticism
must be opposed Americas established facts.
In this connection It must be recognized that
American Industrial enterprise IS so vast. SO
conclusive. that II may we'll assume market
leadership on the Stock Exchange. Such re-
ports as are presented by the United States
Steel Corporation and the various copper COM
panies disclose browning achievement OF char
acter hitherto unknown It begins To look pos
sible that the Steel Corporation may pay for
it's new Gary plant entirely out OF current earn
ings. The question. OF course, arises as n
whether common Steel shareholders might not
be somewhat sighted IN such an arrangement.
but the fact remains that IL this policy be pur-
sued the Steel Corporation viii find itself within
a year or two the pOssessor OF a great product
I've plant upon which It will not owe one dollar.
Meantime, the common stock is paying a dtvi-
dend equivalent 70 very nearly per cent upon
It's purchase price. and there IS not any posi-
bility OF reduction in such payment-the only
change must be IN the upward direction And.
incidentally, how foolish appear those predic-
lions OF a year or two ago concerning the in
stability Of the per cent dividends upon the
preferred stock. Those are seen to be assured
And. Just as in the steel business. so in the
copper business. revealed business cOnd-
lions OF uuimpeachable strength. Copper metal
selling near 20 cents per pound means profit for
every producing mine. The big and the little
companies alike are prosperous. High grade
ores and low grade ores can be marketed with
out effort. The great mines operated by tho
Analganated Copper Company and representa-
tive smaller mines represented by individual
Capitalization are all able TO operate upon q
basis which means dividends TO stockholders
An Industrial boom lies ahead of which
can easily overshadOw railroad activities II
may we'll be that. far as Stock Exchange
markets are concerned. the industrials viii take
precedence There is some warrant for such
anticipation. Peculiarly adverse features affect
ing railroads are without influence upon pro-
ducing Industrial companies.
Attack upon alleged trust combinations has
nothing to do with the development OF copper,
or silver gold mines. The actual diggins
out of the Garth OF the various metals goes on
anyhow. and freedom from attack upon the part
of industrial corporations. compared with
railroad corporations may naturally give them
market advantage, There is no claim anywhere