New-York tribune., 1907-12-22
The Financial World.


Of special notation takes places. There is rpuch
theorizing. vast deal of augmentation lttle
activity, virtually no public interest exhibited
In the business world some things come n
pass which under normal circumstances would
command attention. might be counted upon IN
exert even consequential influence But hardly
in any sense OF to any extent is there ordinary
-normal-status for anything. If something
bad happens the oracles chatter. I'VE told yo9
SOL" And for any sign Of betIernent the fash
ionabie greeting Is contempt
Still preponderating, however, Is the bearfsh
influence. Bad things are welcomed. good news
challenged and resented Yet what Is clear
above most other things TO the facts OF ths
Wall Street situation is the certainty that scara
elements are practically exhausted-in so far "a
bugaboo campaigning against values is con-
cerned Investors who could be frightened into
liquidation are already out of the market. Fur
ther adverse pressure against prices cannot
come as the result of investment nervousness
New raids upon the markets equanimity would
seem to be threatened only from quarters
that are speculative-further sales of securities
in any large volume likely to be made only by
Stock Exchange traders who are raiders
What may not be forgotten. though, has to do
with one still abiding element IN the banking
situation-the danger (perhaps even the proba-
biity) that banks which have (fOr varied rea-
sons) been carrying collateral loans through
recent unpleasantness may take advantage OF
any gaining strength to clear up contracts with
stock market clients On this account there
might be free and large sales Of collateral on
new firm bids-for, however the cy1ics Of Wall
Street may try TO bespatter the intelligence and
integrity of the BANKS what has been pre-
enlinently certified during recent months is dis
tinctly and splendidly to the credit Of our lend.
ing Institutions.
Dividend announcements play rather irnpor-
tant part IN the making Of current public senti-
nent-a dividend record that ceases to be. uni.
forraly on the right side Some substantial re-
ductions disturb calculations Where there
seemed to be reason for confidence in main
tained figures the rate is cut-as. for example,
in Distillers Securities, where the current quar-
ter's disbursement is cut down two-thirds-the
payment to stockholders becoming now only n
of per cent per quarter as compared VILE the
recent 11s per cent. It is Official annognes-
ment that this drninution is in the face Of main
tained earnings-the explanation offered being
that Currency stringency has handicapp the
company's arrangements in its tax paying oblI-
cations to the government And that this may
be accepted as true is not doubted by informed
people, though much ado IS -Enads oy crlLcasters
who insist that there are speculative plots back
OF the dividend reduction policy on the basis
of 2 per cent. the speculative interests OF Wan
Street Will, naturally. be disincltned 70 regard
Distillers stock as entitled TO any better mar
ket value than IS commanded by United States
encouraging fact looms in the current incident,
however-there is utter absence OF what in the
old times was hailed as natural II the way Of
suspicious against the integrltyoi the PERSONAL
in LIe corpvra,I0nS L11AassIlc4lL-pIssenl c0n-
troIlers as conservative as former manage
ment was reckless and d!sCreClted-
OF much more cOnsequence-and naturally
commanding lar more pronlinence-@aS tnis
weeks dividend record tor New York Central
and Pennsylvania asset properties Emergency
disbursements are made LOE the Cene1t OF both
these systems-aS increased DIVIDENDS by con-
trolIed loans under conditions "h4~L even gen.
erous Wall Street sentiment construed as sur
prising. and OF debatable proprleJy-relef per-
formances to help tide over the main corpora
tions themselves
What is not much discussed in financial cir
CleS what indeed, seems 10 DC little appreciated
is involved, however, n the necessity d New
York Central and Pennsylvania 10 keep faith
with foreign h2anciers and investors, to- fair
minded men, cosnizant OF terms under when
during the past year loans and investments nave
been underwrtten in Europe VIII De inclined
toward generous construction o.. tne policy now
being pursued The mere matter Of future
credit can justify what originally conservative
critics must naturally condemn On promises
broken now viii no; help new promises which II
NAV be necessary 20 make IN tire future
AS TO important market effect upon Pennsyi-
vania and New York Central stocks there may.
however. be independent views lle IeEyms
Of increased taxes upon stocks he.d II the treas
ury does look a good deal Ike the HuTrying or
first aid to the injured" And rs 10 New York
Central particularly. Jhe market price may N
the earIy future much depend upon the accept
ance in certain official quarters OF plans which
are credited personally to W h Fano@Eotit A
new financial elemelJ-new TO New YORK Cen
trails invited into the Corcpany'S management
Far and away the most important develop
rnent OF the week from the corporation stand
point was in the exhibit made BY Union Paci1c-
showing 10 per cent dividends almost doUby
earned. Other features IN the report augmented
this inspiriting disclosure Southern Paeinc'
moreover. is coming promptly alonS with SIM
ilarIy cheerful showing In these figures appears
disproef OF much promoted Calamity Vocl-eT@-
ton On the basis of these financial statements
there need be no dividend eontractoa-an ap-
prehersion 70 which notified stock Exc171Se
genius has recentIy ted itself
Cofncidently. in the Illinois Central contest ~
Chicago Hartman interests score substantial
victory. They have not been tied up iato pre-
dicted knots.
Health aside. E H Hartman seems entering
upon opportunities exceptionally e-eoaT-
aging.
In the daily chronicles os Wan Street pes
slmism especial stress IS laid continually upon
iron and steel trade ccaditions-the assiduocsy
urged representation being that the situation -
not only bad. but growing worse Active, prae-
tica!. operating men high in authority in ths
foremost steel corporations testify diferentiy'
but the chorus is maintained OF EVIL chronicle
and more evil forecast It has even become an
almost moderate prediction that Stee! common
dividends are to be abolished. and Steel pre-
ferred rates cut down-and that folly tales Ike
these are able TO obtain even passinS attenIon
testifies amply TO the current Curio ccnGltlon OF
Wall Street mentality
Kansas City Southern common stock Is 10 90
upon an established dividend basis.
In so far as the immediate future Of the Sc
curity market is concerned there seems 70 oe
uniform agreement among conservative authorf-