New-York tribune., 1907-10-27
SEES A BOOM COMING.
Biggest Yet, Says Mr. Carnegie
Praises Presidents attitude.

Andrew Carnegie predicts that when the business
and financial air has been cleared there will be a
new period OF business expansion and growth that
VIII eclipse many former boom times. Panics when
they did occur. from on. he said, when he got
In on the Baltic yesterday, would be fire.
quent and more destructive since industrialism
was tending more and more to corporations. In
speaking of the great industrials Mr.. Carnegie
said that when the demand became great profits
swelled and stocks became inflated beyond their
intrinsic value. Then when the inexperienced
bought heavily, and the inevitable reaction oc-
CURED, came the rush to unload and the panic.
Nothing unusual unexpected has occurred
said Mr. Carnegie on his way up the bay the
Baltic. ION the contrary, a fall in prices was due
two years or more ago. and it has been surprs-
mgly small this last week. It lies in the nature
OF things that the attempt to attribute the recent
and spasmodc fall in prices to the wise and in
the truest sense the truly conservative resolve of
the President and his Cabinet to enforce the sal
utary laws against the abuse of their powers by
certain trusts is only device to serve political
intrigue
Mr. Carnegie also declared that the welfare of
the country made it imperative President Roose-
Welt to accept another term. In more extensive
statement. made after he had landed Mr.. Carnegie
said:
Il have believed for the last two years that the
interests of country would require. and the
Republican party demand, that the President be
reelected. He has been elected but once. 1
no reason TO change the views I have held for two
years. On the contrary are now crossing a
stream and swapping of horses should be per
mitted. The President will enable US to secure
the much needed safeguard TO investments in cor
porations and think also such laws will draw
from excessive wealth greater. but not unfair.
contribution to the national revenue.
Now. industrials always did and always will
vary in earning power more than any other stocks.
have said that the steel business, for instance.
was either king or pauper. When demand becomes
great It takes time 10 build new works or extend
old ones: time to mine more ore, and in this in
terVal prices profits swell and the stocks of
the companies go far beyond their intrinsic values
The inexperienced read OF the profits and buy
Then comes the inevitable reaction. The increased
product not only meets all demands but is in ex-
cess. Then works have TO run on short time and
in some cases close down entirely Profits fall
until none remain. Then comes the rush OF fright
ened sellers.
There remain few Of the former partnerships of
manufacturers which issued no stocks to be specu-
lated IN. and now down go the stocks their for
Iner level Then comes the clearing cyclone of
panic Gamblers upon a margin ruined Small
loss to the community. Serves them right No
genuine interest is seriously crippled by the fate
that befals them.
In due time the skies clear and the present pos
SCISSORS Of securities that 1t wasn't terri
bic catastrophe after all; that the volume OF
genuine investment rests upon real values, and
that very soon these will return to their former
sound condition, and all will be we'll
than in any other, so enormous are our resources.
Consequently, the downfall for us is correspond
ingly sudden. The shock is more severe. but the
recovery is also more rapid.
The decline IN prices would have been much
greater had the people not been assured that the
Investments IN stocks and bonds are hereafter TO
be safeguarded TO a much greater degree than
ever before Nothing is proposed or intended by
the President in this direction which is not the law
to-day IN civilized states No railroad corporation
IN {tS al or Il
can merge with another without first obtaining
authority from a recognized tribunal Bven Canada
has its commission for this purpose.
'It is not only right. but necessary, to supervise
such corporations we do our banks. They are
creatures Of the state enjoying many privileges
and the interests of the nation must be pro-
teoted When this is secured it will be seen
that the President has been a truly conserva-
tive force In the country and that the investor now
being protected swndles at the hands OF small
ciques OF men who abuse their houclary posIt'"ils
directors
Nothing more is aimed at BY the President than
20 provide such safeguards the foreign investor
has at home. Nothing of this kind should be OBJ
iected to by the honest official Nothing less
should be demanded by the people, and nothing
less should the government give
Let it be understood that the President has
been urging this vital reform for years, during
which prices have ruled highest; and that he
stands to-day just where he did then and where
il is to be hoped he will stand until our laws pro-
tect honest investors from dishonest officials and
their swindling scheTues.
New York is the best market in the world. be-
cause our country is the most profitable or all
countries Of the world for the investment of re-
sources and must continue 10 be so. All we nave
to do is 10 convince the world that our laws pro-
tect the investor as carefully those Of other civ
iized countries. This is the Presidents policy.
He should be supported in this work
Mr Carnegie was in jovial mood, laughing and
iokinp with the reporters He had had a pleas
ant summer abroad with Mrs Carnegie and their
daughter who were with him on the Baltic
Asked if he had had profitable season. he SAID
the season had been very profitable, indeed.
..yUbv I have improved my stroke until l can
co,,ar nine-hole course in 80. That's pretty poor.
hut a great improvement on my former work he
said
Asked his opinion of the Westinghouse failure
he said that George Westinghouse was genius
and that nothing could keep him down
AN he needs is a sound, conservative man to
r,,n the business end of his enterprises"
The closing of the Pittsburg Stock Exchange ne
said was a very wise precaution-