The Washington herald., 1907-08-05

ton was found for the contentious OF
those who, during the preceding week
had argued that the manipulation Of
these two stocks was untimely and in
judicious. and that injury 10 the general
market was likely to come from ii.
How far the aggressive manipulation
OF the Hartman stocks that carried
Union Pacific to / IS on July 25, and South
ern Pacific 10 91as on the same day, was
responsible for the decline IN the general
market that has since occurred, 1t would
be impossible to determine. but that by
creating a weak technical position It ae-
centuated the succeeding decline there
can be no doubt whatever.
There were. of course. other important
factors making for decline in prices, chief
OF which was the disturbance Of the mar
kets abroad. London being affected by the
after effects Of the recent financial tr0u-
bles In Egypt. while Paris naturally re-
flected news regarding the unsettled con-
ditions in Morocco. That the Importance
OF the Egyptian matter was exaggerated
Is now plain. The financial embarrass-
ments which it was said would arise in
Great Britains leading cotton center have
not occurred, and are unlikely 10 occur,
while the withdrawal OF gold from Lon
don by Vienna a week ago indicated that
the plan attributed TO Sir Ernest Cassel
and the Union Bank OF Vienna Of unrav-
cling the tangle resulting from the sUs-
pension Of the Casa 81 Sconta were TAX
ing tangible shape. and that henceforth
the working out of the Egyptian financial
difficulty might be regarded as only a
question Of time.
No Fear of Gold Exports.
Fears were entertained al one time that
New York might be called upon 70 furnish
considerable gold for export 10 Europe.
but although in the early part Of last
week the exchange market was strong
and the Bank OF France was still willing
TO aid a movement by paying interest on
gold in transit, the actual exports
amounted 10 only q single consignment
/ Of $4,000 70 the French capital. none of
the metal being sent 10 any other point
Exchange has since dropped back 70
where there is no longer a possibility Of
exports being made except at a loss, and
/ the confidence felt a couple OF weeks ago
that very little gold would have TO be
/ exported this fall has returned and is
now stronger than before. High prices
/ for wheat and cotton viii set exchange
strongly in favor OF New York just as
/ soon as these products Of American farms
begin 10 move out IN considerable volume.
But while In money and the foreign sit
uation some cause was found for the
| pessimisfn which pervaded speculative cir
/ cles, there were factors OF a most en-
couraging nature, such as the excellent
statement OF earnings published by the
! Steel Corporation and the declaration Of
dividend at an increased rate on the
common stock OF the Southern Pacific
! Company. These. however, passed un-
regarded Not only was the statement Of
the Steel Corporations results for the
/ quarter ended June 80 the best ever is
sued, but il exceeded in net earnings by
nearly 100000 the highest previous rec
ord. and showed that in the three months
period the concern had earned at the an
nual rate Of about 19 1-2 per cent for its
/ &OS, co., 900 Of common stock
Big Steel Business in Sight.
To what an extent the policy OF
strengthening the position OF the com
pany by the use OF earnings has been
persisted in is seen in the fact that the
cash working balance is now $1C5. .O000 200,
or about three times as large as it was
in the first year of the corporations
career.
II will stil take the corporation a long
time, 10 work of accumulated orders Of
! 100000 tons. in addition 10 the reduced
fa ~,
but If the books can be nearly cleared in
time for the next rush. which may be ac-
companied by higher prices for important
lines. the lull into which the trade seems
to be falling will be Of very great advan-
tage TO the United States Steel Corpora
ton
$. p. Dividend Only Natural.
The increase in the Southern Pacific div
idend, seeing that in the last year the
new rate was earned twice over. did not
seem to be more than just recognition of
the rights of stockholders. and the fact
that the management of this important
road did not hesitate to increase the size
OF the quarterly distributions should go
long way toward setting at rest the
rumors that within the next year or so
many of the railroads of the country
would find It necessary to ecOnOmize by
making a reduction in the distribution Of
their shares.
Erie has been the subject Of a good
deal of gossip lately to the effect that
the dividend on the second preferred
stock might be passed, but it seems al
together unlikely that this will prove to
be the case. The Erie Railroad has made
~
years The report for the year ended
June so last has not yet been prepared
but there Is little doubt that IL will show
gross earnings OF about $54. .000. 900, against
S50, 900, 900 in 1906. while there will be left
for the stocks about S5,40O.000. or more
than double the full dividend require
ments of the first and second preferred
stocks, although before the dividends are
figured in, an appropriation of between
81 SOC. 600 and s. COG, 900 may be set aside for
betterments. There IS clearly no lack
Of earnings TO provide for the present div
idend distributions. Erie could easily af-
ford to pay the full dividend on its Sec
Ond preferred, but there may be directors
who will take the view that the road can
not afford 70 convey the impression that
it Is In a position where investors should
expect to get 10 per cent on the market
price Of one of its preferred stocks.
The first preferred dividend will be paid
ct the regular rate. but the distribution
on the second may be cut in half, though
there need not be any apprehension that
1t will be passed entirely
THE NIGHT WIND.
don't like the Night Wind the way he loves to do
For he rumbies In the chimney an he's sRvin'
things to you.
He talks about the shadows an the ghosts an
witches too
An I'm wishin'-iust a Wishin' It was moruin'!