New-York tribune., 1907-05-19


age In this one crop-that Of winter wheat!
what every railway manager OF the country
will agree in saying is that there still IS
sured traffic in such overabundance that not
one Of our important railway systems will be
equal 10 the ready handling OF business pressed
forward for transportation. Pessirnistic oracles
have been chOrusing throughout all this yeas
that general business reaction was imminent.
Eminent fnanciers assuming 10 discipline
Washington have talked recession, contraction,
set-backs. and all that But not one OF t9esa
disturbing elements has anywhere appeared 10
an extent worth sanity's consideration Not
only is the high level OF business maintained,
but there is actual expansion All the fever OF
worry is In Wall Streets speculation purlieus.
out West and down South nobody IS seeing any
ghosts. They are too busy-hustling. profting.
What Is counting IN a deterrent way IN Out
financial markets has TO do chiefly with a mans
ner OF mana cement exposed in some corporation
high places. Union Pacifc's hippodrome has
exerted almost demoralizing influence By way
OF Justification, or explanation. or excuse, there
is no morality and no consequence IN special
pleas strenuousy urged that the government
is acting aggressively. So far as tnvestmeni
sentiment IS involved. what surpasses all ESQ
is that the public sense is shocked by Official
revelations which the corporations tnense!Ves
make-some OF them under judicial tnvestga-
ton. GONE Of them voluntary, some OF them even
proclaimed shamefacedly.
After what Union Pacific has done this MONTH
IN Ievying for some S2O0,00O.OOO securities
1t IS not at all surprising that there should bs
almost public stupetaction. Apart from the
dilemma into which this performance takes
Union Pacific itself, what Is most OF consequence
and deplorable-is that the public mind Is
actually forced into q readiness to believe aN
most anything OF any big corporation And
So we have attention commanded by a variety
OF reports affecting almost every railroad ana
Industrial property upon the Stock Exchange
list What Union Pacific cavalierly has dones
investors are willing 10 fear the rest may do,
OS ueVy has
been demanded by Wall Street corporations
since New Years, and there are circulated rept
may be demanded soon. The public asksi
What reason is there for this?" Satisfactory
answer Is not provided suggestions tnat noat+
ing debt liabilities have been enormously pyra4
rnided are not encouraging. And neither 9
there conclusive reinsurance when the pubic
asks further: Where Is this thing going 20
end?"
1t is itIe to ignore that these ara conditions
which Wall Street now is facing In this phass
OF the situation may be found much Of the Tea-
son for Stock Exchange desuetUde. During ths
first four months OF this year including the de-
Tnoralzation OF rnid-NIarch. railway stocks de-
clined in average market value $40 per sharel
| Up 70 the Union Pacific surprise of ten days
ago there was a recovery approxinat1ns one%
third OF that loss. There has been some recess
sion since. Stocks selling at New Years upon
a four and five per cent basis and less ara
and eight per cent Many Of these stocks ara
| bargains-a large majority OF them are. But
that the investment public is less inclined 20
when they yielded barely two-thirds much
last fall is attested Enthusiastically by Stock En-
change lethargy every day. Exceptional action
by exceptional corporations disQuiets the invest
ment situaton-even as a whole-till apparently
It becomes almost the public fashion 10 give
| corporation investments bad name.
| Apt illustration Of this unwarranted and harms
full sentiment is found in the attitude assumed
! by so large part OF the investing public to-
wards the ACKNOWLEDGEMENTS Company,
which, for the people OF New York. is precisely
the enterprise which should most excite their
interest and attract their support, whilst appeal
ing TO civic pride a municipal utility so
colossal IN its character and so efficient IN fts
| administration as 70 call forth the admiration,
and even to arouse the envy. or every great clS
| in the world.
None but the most extreme thoughtlessness
can fail TO realize not merely the essential I'M
pOrtance of such a system OF local tranSporta-
| ton but also its claim TO the sympathetc re-
gard OF the whole community, every nlernber
OF which is directly concerned In its developmens
and its mana cement, being dependent upon u
for those conveniences and facilities w1thous
which the transaction OF business would under
existing conditions. be well nigh impossible
Its operations. whether regarded In tne
physical or the financial sense. directed BY
men of the highest attachments and the largeSs
experience. who have long since won theIr T.e
/ TO public confidence. and who, having reputa-
tions 10 sustain rather than 70 make nave,
Therefore every motive 70 prove thenseivess YES
worthy the trust to which both interest," anH
/ duty have assigned them -.
| These observations are apropos OF the fact
| that the Stock Exchange house OF Ex norton
! & Company we'll known for its conservatism, haS
! made careful. and practically exhausuve,
study of the conditions and prospeots sist OF tn
| system which IL has published in parnpnlS.
/ form-showing by official data that a4thouss
/ the consolidation OF the various sections OF tu'
system is one Of recent date. already econonteSs
| OF the highest Importance have been eHsctc'
/ concomitantly with increased efficiency anu @ oS
| tended service, and that the future or ShS yz-,
| terprise gives that promise which stocKhO"V
| are most solicitous to receive. ,, ..-.
! A comparison of the years 1910 and ISVo 80. sL'
| for the whole system. an increase In net eaIH
| inGs of nearly two and n quarter mllnoIS .Sa
| dollars; and when Il ia remembered ti'ass ti'tt
| important element In the consolidated coI5ph shst
| is not encountered by any mortgage anu ahSnis Sa
| the number of passengers carried oy me wSJrr r
| system has for the last nine years, durlns ara ~
the Rapid Transit Subway has been IN op % o.,
| ton but little than two wears Siu S-,ras
| average annual increase or 4I9Zf9 9lo !t Sno
| lust given become remarkably signlnCSd,ht' .,ts
| Yet In the face OF progressivenesS IiN0 -,
| Interborough-M Metropolitan issues slaS. -toca
| spIcuOus for their weakneSS-the preIetIeu .sIis
| selling barely above half its face value, w.. .
| yielding virtually nine per cent as an lii'
ment.
That finally even upon the Stock ENcna"es
mining securities should come TO nave eA,.40'
is not strange-for properties Ike batopN0'
lust admitted TO official dealings ana haNiis
| for directors men OF character ike Morgan
C,.Frien and Jefferson NJ, Levy, are IlAelS -. 20 ~
| roora trusted than more pretentlous CoIpoLe.s
| ttons whose performances are IN the oalA a'
whose officiai tools are bludgeons