New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-04-07
The Financial WorId.


stronghold by the stocks to which ref.renc. wa,
made last Sunday In this review. Many OF ~,
weeks advances are substantial. To SOM sv
tent they may be at the expense Of an extendas
belated short interest. though there ara Indica.
tions that the biggest traders on the short sis,
have not yet covered 20 anything like tss az
tent Of their commitments
One notable feature in the markets dsvslo,.
ment shows IN the character Of the Stock ~
change houses which are leading IN the trans.
actions that have produced the new strength
firms conspicuous among the leaders being thos.
Of the Importance Of Clark. Dodge & Co.. Flows,
& Co. and Charles G. Gates & Co. II Is "A,
difficult for experienced observers to ealculats
the caIibre and consequence Of financial interest,
commanding such houses in Stock Exchaps.
REPRESENTATION.
What is Of similar market influence appesr,
in the tremendous volume Of purchases OF coda
lots''-purchasers who give orders 70 buy IN les,
than 100 share amounts. There is scant public
appreciation Of what this has lately aggregated
In making transfers OF stock into new names
the Chicago & Northwestern Railroad consumed
within fortnight on this account fourteen GER
tificate books. and Union Pacific used twice al
many. These instances are hardly exceptional:
corresponding record comes from practically
every corporation once, such absorption ot
United States Steel stock breaking every known
Wall Street record 1t has merely been eppre-
citation OF the fact that the Stock exchanges was
become a bargain counter.
OF prime Importance in helping out the bet
terment which shows is the manifest improves
ment of the money market situation. CAN funds
go begging. and at the close Of the week time
money rates react materially. Concessions
come now from the lender-a condition nor
known in Wall Street for long time past
Here and there curious outgivings by
more less conspicuous persons suggest ma.
tiOnaI business recession. Basis for any such
theorizing is not to be found IN actual business
records. But the conventional orator feels il
necessary forever to be preaching what he calls Y
conservatism; and these current preaohments
are chiefly pIatitudes. Apparent worry over
railway traffic prospects can only be aIectation
Practical railway authorities in private CONVEX
sation are all agreed that the one problem now
and for months to come demanding solution ia
the problem Of how competing traffic can be
handled We're there expansion whatever
ahead. the grain roads OF the country Will every
one Of them be confronted with more business
than they can handle from the pressure Of last
years crop alone
It is only fair. Of course, to recognize here
and there especial and isolated reasons for what
NAV be by critics cOntorted into pessimism. Mr..
August BelmOnts New York street railway
problems are not calculated 70 make anybody
beam sunshine; but in due season Thomas F.
Ryan Will solve those problems. Nor IS il 10
be wondered that Mr.. Mellen. OF the New York.
New Haven and Hartford Railroad should fseI
himself justified in putting on expenditure
brakes But II the New Haven road weren't
20 build anything more or buy anything more
or issue anything more for half dozen years
to come its average still wouldn't require apol-
ngy-sO far as side track expansion and size in
capitalization are concerned. Only Pennsylva-
mia SURPRISES it. II used 70 be dangerous 70
sell New Haven shares shOrt-so scant was the
market supply. That drawback is being rem
edied.
It seems probable-agreeS with the Judgment
OF most experienced students Of the situation
that the market viii proceed further in its I'M
proverent. Many conservative authorities an
ticlpate. indeed that there can be early accom-
plishments which will almost bring about the re-
covery OF old prices for many prominent stocks.
Nowhere Is there any feeling that recently re-
corded declines can be justified by business con-
ditions. What finally is likely 70 be Judgment
Is that certain conspicuous financial interests
folks who like to schedule themselves as
eminent" and 'pOwers"-started upon a crusade
70 discipline Theodore Roosevelt They pro-
ceeded 10 make the market uneasy. TO so dis
turb owners Of securities as 20 induce pressure
upon Washington from general investment
quarters AS part OF the programme pessirnisn1
was OF a sudden preached by railway and trust
managers; they all chOrused apprehension. But
distress there came avalancheS OF real distress.
Instead OF a contrOllable market disturbance
a panic was bred. And in the smashing expert
enCe the heaviest sufferers included some OF
those who were foremost in originating the con-
spiracy. They played with fire: their financial
fingers will need IMMINENT and bandageS a
long time 70 come-whiIe Incidentally. two loom
ing figures stay MISUNDERSTANDING in the
White House-sturdness in national business
As sequel OF what Is OF record we have this
certain condition: The market values OF securi-
ties must now be measured more than hitherto
by what each security in itself can be shown TO
be intrinscally worth And this is wholesome
development. IL was an unhealthy situation
that gave swings TO a whole market. irrespective
Of circumstance. for tangible assets and earning
power must in the last analysis be the tests OF
what security can yield the Investor
We have in this weeks records an illustrative
example suggested in this review last Sunday
Kansas City Southern advancing in market
price as the result OF actual tangible progress
The present market figure is not as high as
when. under former management, the stock
was whirled upward in sympathy with general
stock market boom. There was mystery then;
there are dividends now. A crippled. limpnG
property has been developed by devoted man
agement into a stalwart system that doubles
earnings. and what was speculation becomes
investment safety.
Apter illustration OF what develops in New
York Stock Exchange conditions can hardly be
found, for most Of the lessons expensiveiy I'M
pressed upon the buyers Of American securllieS
centre in the fact that there can only be value
in stocks and bonds where there is the under
writing of capable. honest, progressive admins
tratOn.
Measured by this standard, we may hardly
expect TO see some recently recorded high figures
immediately re-established They don't desetvs
to be- All satisfactory tendency must be tow
ard indy iduansTn-each corporation having us
own status its securities measurable in value
by what they themselves alone stand for Inc
investment accountant has new consequence
And the sane investor viii base calculations