New-York tribune., 1907-06-30


everywhere that any such record can be found Is
attending testimony that exceptional circun,'
stances are influential Normal conditions conc
trolling the business OF the country still goes
forward by leaps and bounds-i5 increasing un-
interruptedly So loud and so lurtd have been
some of the business reaction recitatons that
even keen observers have been swept away from
what the facts are-have not disputed the tAI-
tered dogma that where there Is noise Ilers
must be inportance-have, thus perIorCe, ac-
ceDted the issued declaration that bad things
are coming to pass-are even dominating ele-
ments in current situation. Such We" mas
no warrants in conflict with every actual
business development Facts sanity-al the IN
Auences that count with conservative men-con-
trovert the pessimistic preaching And II IS not
difficult TO find wholesome illustrations IN
abundance.
r,,rs+ and foremost IS the sustained solid
strength disclosed in the steel business 1t IS
reliably estimated that untitled orders OF ths
United States Steel Corporation are to-day but
500 600 tons less than they were on January
"a surprisingly small seasonal shr1nkage ana d
new high record for this period or IH7 year
Similar fourishing conditions are olsclo9eU II
the reports of the independent companies Al
authorities agree that for the next fiscal year at
least ample and profitable business Is assured,
Incidental 10 this comes anticipation or the
increase in the dividend on Steel common VI
co,,rsa ~ "a a matter of common knowledge thaC
tt,o ,,reeent rate OF . per cent per annum repre-
sents but small fraction OF surplus edrIi.HSS-
II Is also well known that large sums Las0
been taken from earnings to pay Tor the ouilu
ir, ~ the Gary plant. An increase In the diVl-
80 80 70 2 or even 4 per cent would not be
bevond the lines of conservatism Should tns
rata not he increased at the next declarstion u
will simply mean that 1t viii be thous"'
70 defer such action-terporarily
NIucb stress has been laid upon some IV"i
alleged shading in the price OF copper iieti''
but despite the quotations" OF Local. 1I7,1l 49,
change there Is no credible evidence tnat dC'
transactIons to any extent have been mace d1
o,assiors If anv Importance An authority on
tb subject declares the situation 10 BE- as stroh
as it was a year ago from the standpoint OF W.
ductfon and consumption. and that no rVaSIl
EXISTS why prices should decline-addins Il
r,re,Ic+top that any reaction would brinS ABOUT
an immediate buying movement resulting j..
quick restoration of prices to the hish l7'7' -
the year ,, -
-aIIe,,inc- activity accompanied by substantial
strength in the shares of AualgaInated anu
Anaconda on the Exchange ana reNIN.uS
terest IN the smaller copper properties ueal' -
,,oor the Curb In brief. the copper SITUATION
-, 20 he in inst as sound and healthy con-
ditioD as the steel situation Indeed how couId
II be otherwise while consumptive demand th9
world over continues TO exceed producuVe
capacity?
A. +ba close Of the week Wall Street profess
s,ona,s vrtnkled their brows and expressed dis
turbance over the failure" OF New York Citys
nord offering. Something like $3o000Ooo were
offered: less than 10 per cent taken 6uI yuS|
how either worry or distress or even Ilil., I,ls
tesiuaI sort can he wormed OUT OF thIS i 49, -
cult 10 comprehend These bonds al par re1ui
4 rar cent 10 the investor. They are marksteu
at A time when twice ! per cent Is not d ~,
cult investment opportunity me New
Stock Exchange list is filled with bargains r
turning g. and 5 per Cent.-and the secutl'l7S
cipal and as to their interest not ar all IN quTS
tior-they are just as safe as any pono O. 1H
City OF New York. Examples are rlsht at , 49,,
Including issues Ike AtChison preferred PdSH'S
= ner cent at q3 and United States Rubber anu
United States Steel preferred paying anu
per cent around par The investor ho"
isn't paying premiums for utular pr7St,Sy
what the investor wants is return New i'lN
CITY per cent bonds do not measure up 10
current opportunity. Easy enough IS the PROV
Iem-what the investor gets.
And finance at this short range mas plenS "a
interesting phases-true here and the word
ovsr-New York City bonds going begging
counterbalanced by the splendid neglect 20
which foreign investors are treating BRUSH
consols, ranging now lower than ever oeIoIe'
To those who are familiar with this revie"
the attractiveness of steel preferred is a story
told over and over again-this the surest OF al
Investments Of to-day Take auOther-and cor
resnonding example OF what is suIeror-thS
FIRST Dreferred stock OF the United states Ruo-
ber Company. 1t pays per cent II sens az
mar Under present mana~ cement the hu"og
corDOration represents revolution "h10-A
marches from disorganizatiOn and hopeleSSneSS
into phenomenal prOsperity-conparlSon
tween 1901 and 1907 making a record "il'oH =. -
any, other country than the United States woulu
he in5ustrialIv impossible In 1902 the conn
many, was paying no dividends upon any OF Us
stocks. il Is now paying full dividends upon
Nth its preferred stocks. Net sales for the
,ro1-ious wear were $50 sos 6;S 81; net sales FOR
1ao7 S5o 452 S5I AZ. Net profits for 1902 were
s11a 4o5 60 and for 1907 S4.5s0.SS@ a..
ttt hnt $3.50 3OS 81 OF the Rubber Goods Com
nanv's profits of $2.O0+.4Si 20 included And
the surplus of the company (then nothlngO -
now ST, 126. 100 ~.
With record like this, surpluses OF millions on
millions piled up Is there any reason why the
investor should prefer per cent. municipai
bond-even backed by the quizzical prestise De-
slowed nv Tammany Hall? If investment may
be measured by what investments pay 'n ms
United States Rubber preferred eNaIhp.e -.
or,nIv exnlain the abstinence of New 4orKS
bond sale. ,t. r
And as TO the Rubber Company shoWlns'
an, able to state Cat the risk OF anticipating
what the corporation itself may choose Ia'er 70
dIsclose) that during the three months OF APIH,
NAV and June following the close Oh l's Ils'N-
year) the corporation has recorded earhllss
q rate equal TO a 90 per cent. increase over WhSI
IN the corresponding period last year 1t earned
That the preferred stocks dividends are Ia1
and away beyond any interference Is uhque'
tionable.
To investors who have any speculative N
clination. how exceptional becomes the oppor-
tunity offered In United States Rubber common
stock-current net earnings showing over
per cent dividends earned-and the stock sen
ING auav down around 40 Its aItractiveneSS IS