New-York tribune., 1907-09-01
The Financial World.

In the stock market what develops IS enc0urs
aging. Bear hurrahs continue; but every tina
| tests are made quotations advance That there
! is an extended short interest melody doubts
| vet II is improbable that any ordinary observer
/ os the situation begins to comprehend the ex-
! tent IN which there have been sales for future
delivery nv people who did not own what they
have sold
| T-r5e7tabtv If is true that every owner or
| securities susceptible to nervousness. every
human being who could be scared. has been
forced into the recent tumble Of liquidation.
Thus bear spectators have prohted trsnen-
dous1v. But-what every experienced authority
-ocopoizes--the situation for the general market
Is bv this purging made all the stronger; weak
elements disaDpear: there is succession ot
strength where formerly were timidity and sgi-
tation.
Anxiety I'm local traction circles, during tia
last few days, has been sufficiently manifest;
and many stockholders OF the Third Avenas
Railroad Company which constitutes one OF ths
most funDortant parts of the metropolitan sys-
tom. have been ilIIprlIed, mainly from want OF i.
reflection to sacrifice holdings WHICH, so tar
fror, being less valuable than hitherto have.
during the past few years. really gained an
increment of value as substantial as 1t has been
little noticed
si,ca the Third Avenue road was leased to
ARA 1900. the City Of New York has grown
,n1rnenseiv and tts traffic has increased in ac-
fivitv even more than its population IN num-
hers Under the terms OF the lease BY which
the road was taken over, the Metropolitan
Company became pledged to effect all necessary
improve enients and betternents, and has, IN its
own interest expended large sums In the IN
provensnt Of a property whose importance to
the entire system IL recognizes far more kesnly
than does any portion of the public outside OF
the best informed circles
T4anpiIv for the stockholders OF the leased road.
= nosition has been reached where either they
must continue 10 enjoy. without Interruption.
the very large and growing dividend which has
been provided IN their favor, and which Is reg
ularly and promptly paid. or eise' II me Vefy
worst Of the apprehensiOns by which they nave
been disturbed should be realized. and the Met
ropoIitan Company should, by default bring
about an abrogatiOn of the lease. they would
come anew into possession Of a most valuable
nroperty In excellent physical condition. more
capable than ever Of being economically cpVF-
ated. and with an earning capacity greater INN
it possessed when its shares were seIths d1 '--s
highest price to which they ever attained
But the Metropolitan Company is too soncl5ous
of its interests TO permit the tatteF ate "a
tive to assume even the seTnoiance o. uN7II-
hood: and il not only meets lis nxed chafzeS
and leasehOld obligations. but IS moreover ape
lay aside an appreclapIe surplus lot ne oeI9-
fl of its stockholders, its possible lnsolVeIcSs
which alone could bring about the reVersion
suggested would seem to take on the character
of a speculative ruInor afOat by an inter
ested clique rather than that Of an estimate
based on the least 1ud1c1ouS OF nuslleSs
Moreover. the Metropolitan Company cannot.
in the exercise Of any conceivable preference Ot
its own. default on It's obligations IN regard
TO the Third Avenue road "!tiout pftStIcail-
defaufting on every ieasehold obligation u
which il Is a party thus dlsruptlng tne Nery
system whose achievement has created IT'S power
and whose maintenance Is essential 70 the very
purpose OF It's existence as = consolidated prop
II would seem that whilst the stockholders
Of the Third Avenue road have been taking
their assured dividends, whether with satisfac-
ZION or apprehension as to the future. events
have been steadily working 10 give them con-
troll Of both horns OF dilemma e!tIeT OF NnicIi
might be almost iudtffsrentiy chosen n the IN
terest OF their original Investment Ttley nave g.
been well paid: and Il in Tealiza ton OF the
fears of some Of them. they shouicr oy any
turn OF circumstances. be called upon 20 taA9
back their property and manage u FoT CneIL-
may at present thoughtlessiy regard es posi-
bic in luck
Incidentally. men Of fairness VIII not g
influenced by the explOs:vensss sounded
through Wall Street piIIorying Thomas 2 Ryan
without a hearing for oracles assa Ing Air-
Ryan now can be as subordinate to him a Atts
later as at present they are venomous-1ust a.
soon as he Is personally IN Wall Street ssaln--
and that may not be far hence
II Is said upon authority that Nj RYAN -
TO-DAY as confident as ever he was . local tr1c-
ton investments" Sneering Is pett10ss' Ia1v
who are sneerers were out Hl-4e Wl--+
ago ardent observation-disclosures as much then
as uoW-never caring for anything 5ut an m
mediate personal proht-and ready now enc
In the future. as sn the past. 20 cha1se co'oV
with any new ciTcums tance' WIN every "7"
opportunity.
Extravaeant bearlshness has co1s 70 uaUyht
in Erie railroad affairs OfHcial dividend &C
ton reflects both the fact that returns due q
shareholders are earned and. as well that ths
financial controllers Of the Ere corporation
are so disposed to fairness thar the returns
due are made available collateral. even u
not in the form of immediate cash drafts n
contrast with recent frenzies % deprive n
vestors of every scintilia o. benefit tflS EFte
action is heaithfuL PrefesSional Wan SlresL
is little alive to what is developing IN Efls
affairs Eventually here IS q properly 49,
will have commanding status for its Securltief
In even ultra conservative quarters
IN another part of the market there Gay =
announced-though not by any insider admit
ted-darriman interests may oppose t1ls8L-sss
may be cievert the ambitious plans L-A' Eav.-1
Hawley has for curing ali OF ChicaSo & Al.
tons ills by merger into hts less important
property. the Toledo. ST. Louis 4 Western
Copper trade uncertainty continues. the price
for metal reported even under is cents this
week This represents q shTlnkage which eS~
tends to tremendous figures when calculations
dating back only few months reflect pFac-
ticaIly uninterrupted drop from above % cents
In sons notable high financial Quarters tas
damage must be troublesome Cnce more
though. Is attested the wisdom of trusting 20
plain. straightforward views Of practical men
instead OF following blindiy the fortunes OF
spectators whose trade conceptions hinge a.
ways upon stock market interest r A
Heinze's knowledge and candor are certified