New-York tribune., 1907-12-01
The Financial World.
THE TRIBUNE'S FOREIGN Ne >: - -


ket Most stocks are strong. even shov
buoyancy-as compared with dreary recent az.
hibits
While it Is much to be doubted that we ca,
have any quick important general market r,sa
what does seem very plain is that the scare is
out of things. Investors who can be coerced fnfo
liquidation have already let go. No market wa.
ever more thoroughly cleared out Of weak ar.
counts But every side is heard recital %
the traditional gospel that a demoraIized seen.
rity market is like sick man. who. even whe,
cured must proceed slowly and carefuliy-s,.
capable Of whirling out of sick bed TO com.
pete in foot race Investors will forgive tn.
pace Of recovery. however. If only that recovery
be and stable.
Outside OF Wall Street most indications are en-.
couraging Here and there disaster overtakes
some industrial or commercial enterprise bu,
with few exceptions difficulties so disclosed ara
not new not the result OF current financial
stringency, except to the extent that there Is I'm.
mediate precipitation OF failures which, under
any circumstances were but matters OF . Itts
further time. Instead of enterprise and expan.
sion and overextenson being responsible for tia
average suspension now announced, explanation
is more readily to be found in dry-rot manage
Inent, in failure TO advantage through our long
prevailing period of good times.
The national agricultural exhibit as set forth
by secretary WILSON Is warrant Tor the utmost
enthusasm-over S7.O0OO00O00 Of new wealth
in q single year.
In the banking world. stress seems passing.
Conservative authorities are anticipating that
things will be normal soon.
Illinois Central cOntroverses-centring about
Mr. Stuyvesant Fish's attempt to recover con.
troll OF the property through Iitigation-becoms
less spectacular. There is this week abandon.
ment of the theory that Eastern insurance COM
panies should be deprived Of their right TO vote
stock they own in Western corporations-a nova
at which any conservative investment senti-
ment must naturally revolt; for it is precisely
such corporations in conjunction with the saw
ings funds with which. indeed. they have many
features in common. which have by their IN
vestments built up municipal credit IN every
state and territory. and thus supplied the basis
of the major part OF the public utilities insep-
arabic from life in centres Of population.
and which. going further into the field Of con-
temporary progress and development. havs
taken over huge percentages Of the bonds and
stocks of railroads and other quasi-publio
Citations. and. through the aid thus given to
enterprise opened to cultivation and expansion
whole sections Of the country, which without tha
succor thus obtained would to-day lie fallow or
remain desert
law as that quoted in Illinois would accomplish
would fall not AZ all short OF conhscation-a
been almost foremost in making financially
possible the upbuilding OF the West and tho
underwriting OF Western prosperity To dis
crininate against Eastern Insurance. COM
pany as a stockholder in western railway
could ONLY challenge sane men-ali faIr minced
men-looking to the future. to ask OF taenl-
selves: Has business gratitude become d Ios'
art?
But another issue which IS adhered TO Is
barely less to be deplored-an appeal TO pre1u-
dice against the working out into practlcaI per-
fornance Of what is actual community OF Il,
terest in larger railway operations = Is ursee
that Union Pacific must not vote us 1Ill4o.s
Central stock for the reason that Inlo1 PacllG
may thus profit through close limos Ceht.aA
alliance This same argument had much relt-
eration a little while ago. when contestants OF
Union Pacfic's control OF southern FacHlC eA-
cited themselves with prophecies tnat NJ. I aaI-
rir1an was bent upon Southern PacHlc WrecAags
to augment Union Pacific rronts Ihe seque1
there is what2 -, -I
Southern Pacific bankruptcy has been cured
sourbern Paciffc's physical decreputude IS su-
r,srset1ed by what closely approaches railway per-
lection Southern Pacific deficits are cenVeFySo
into profits stupendous In neu OF [elei. .o-.,a
expenses and disruptinS dangers. tnere Is CoslI7
esfa blisfed credit-and IN answer 70 atl tae yol,
Ieved prophecies OF evil there are dfVldenGS' dna
(above dividendsl surpluses rnl9hs p.l-0 ,5Sa G5C
millions More sweeping disposal OF preJudic7
could hardly be- -. .--.-.. @7--
For state like Illinois 10 have It's courts LoE,
bid franchise rights (Which are o"lle-SI.e y
rights, would add savage force TO lGVestu,eass
criticisms which. for good reasons. rave La4
bitterness in them Eastern investors nave "a Ia
sore experienCes in ChiCa 20 -Securl'leS' no
merely market values but intrinsic valueS ihe.-'
over and over again the merest pu2pr'S ~ -. s.
plotting aldermen or leglSlatures-u4.s - - +i,,s
poration adventure OF the sort up 10 t'llS III III
however has assumed 10 disfranchlSe an eCtua- s
holder and owner of capital StocE- II oA1-'le -
such n law would disrupt established systems. -
eTcb extent that related and unified propertees
of the first Importance would ne I. ~ -. ,-n1
confusion practical anarchy. Ana lle Pl-H+s PIu-.t
effect the natural erect. IN $500 80 esfab-
couId rot fail 10 be that values, losing eSt.1
I,sbed bases must fall pieces Illinois cIetIs
is directly az stake And quite as d'IetL - r,
interest involved for independeHt ~ nv -, bs
,,a1- ba that critics Of NIr- Hartman Csd 20
,-rrI, austere il may be that his Union Ea[.-, -,
administration Is arbitrary. 10 HiaS -. .ra
Union Pacific can find profit IN comma -
Y1iin1is Central situation: but neither M fia-
riroar's personality nor Union PacTcs 5 PISsss =,
itv is n target 10 be mixed tp W. .-.-o1i-
sane and plain. and what ouShL 90 - - b,1sst
irotbe simple issue of being falr anu -, -
the simple issue of an investment SIaIIS SIa; Csn-
OracIes predicting evil things Tor !Iillu'S -
trail because of a Union Pacific lnJtIs9. .,sss
80 90 wore certain to be riSht tntd -
same oracles were right IN tnelr issror,s
cifc maledictious- They were llist I!,sr as tsse
cf evil there They prepared Icr dlS-l''e'
reap dividends. - ,-,,7 ~ there
And (takng the chief safe teso area1y a5Irr,,aa
is record Of what administra'l4sl ~ ~, -. s,rcb bet-
sor+ can DO In Illinois Central aualIs Io-s.
sr,ert ,n the cOnpany's revenues that aIs % a.
critirs saw they really cannot see no" - s,,ch
ures can be true. cannoI Az, FOR tns
yroaress can be made They were iN''''
orst Rut worse refused 10 come
-r,. ,ror,nt and effective recognition given W
cacratarv Cortelyou to the modified con0i'.''
arising under the governments pollcy III ie'E
20 the recent crisis. and the admirable s''inuiN'
thereby furnished to public confidence recstSs"
Incoming tribute OF approval in the speech p -
" delivered in Chicago by ex-Sscrelary 49, 80
whose present position and past experleH''
we'll qualify him 10 speak with an'no'..s 10y
-$