New-York tribune., 1908-01-19
The Financial World.

est still extended. Money is easier. Last weeks
bank statement fixed that. This weeks state
ment further certifes it.
In some conspicuous quarters manipulation of
crude sort makes fragrant exhibitions, but for
the most part the markets development seems
natural There is ample disproof of fashionable
theories that as soon as advances seemed Sc
cure there would be an outpouring of stock in
volume from such far sighted people as were
buyers at the bottom; selling pressure Of
any such sort has at any time appeared. 1t is
true. doubtless. that good many stocks have
been ret go on this Improvement: but there has
at time been liquidation substantial enough
to affect the markets course. Influences for
reaction have been special rather than general
have had to do with developments which at any
time and under any circumstances could only
be construed as bad American SIneItlnS deVeI-
opmentS do help
one disagreeabIe influence in the weeks mar
ket resulted from the rumors which persist from
abroad that prominent railway systems are JIy-
ing TO find resting place for big new security
issues-denied here
Yet. by contrast. what may be considered
something very different from a disagreeabe
influence has to do with report having quiet
circulation in the very highest banking circles
suggesting that announcement can now at
almost any time be made 10 the effect that the
premier banking house of America is able to
announce that its correspondents in France have
arranged for the taxing OF SIVo,VVeGny OF Chlted
States railway SeCUTitieS-the establishment Of
$100 100000 Of American cash credit in France.
This information comes fEon such sources that
il is not ignorabe. Actual CertifcatiOn Of it
could have but one meaning. security market
wise-assIIrance that money market conditions
must becor7e extraordinarily advantageous here
to the buyer and holder of home securities
In anv current market development what
above other things must be influential with the
prudent investor has to do with the CONNER
cialr exhibits of our corporations. The phenom-
email position of Northern Pacific and Great
Northern naturally helps them to extraordinary
degree: St PauI-lonesome among Kuhn Loeb
properties having any hope lett in then-is en-
titled to coincident market appreciation; and SO
through the list, those stocks which stand for
expansion-prOf1t expansiOn-nnay be regarded
fairly entitled to consideration in such in
vestigatiOns careful buyers make But it is
not likely that any other than such quotations
as bear the test OF the CertificatiOn of net
profits may hope TO participate in early actual
market betterment-fOr profits nowadays are
expected where mere suggestions were afOretime
satisfactory-and such tests are more and more
becoming actual tests
After panic prolonged and acute what the
investor must most plan for is the attainment
of a security which has enhancement prospect
Conspicuous among such the issues of the
Colorado Southern raiIrOad-a property which
finds prominence for the reason of its superiority
in earnings increases-bOth gross and net
gains being recorded even in November and De-
cember while nine-tenths of the railroads Of the
country were being obliged TO aCknOwl ledge de-
creases. Even under the dreadful stress OF De-
Financial exhibits touching this property are
simply phenomenal Detailed statements OF
pansiOn have been year after year more amazing
through the period OF fifteen years since recelV-
ership and hOpelessness were succeeded by pro-
gressive management Some four years ago the
first preferred stock went upon dividend BASIS
the year before last dividends were established
for the second preferred; that earnings
warrant the advance it is merely a question OF
tinneIiness for the prOperty's management to
bring the common stock into the dividend line
But so conservative is the corporations policy
that it is not Immediately possible 10 forecast
this inspiriting develOpment-bUt (this much is
certain) common stock dividends are close
ahead. The patient investor. buying Colorado
southern common stock at tne present PTice'
will in all likelihood double his money within
virtually another tWelvemOnth.
Among current developments a feature that IS
interesting and more than superfcially signif-
cant appears in the revived activity Of mining
securities. There is vigor in this new develop
ment. and viewed from most standpOints il is
healthfUl- In mining shares. as in any corpora
tion security, it is primarily essential. OF course.
to have tangible property and fair prospect OF
profit-on an actual commercial basis. Mere
promises. guesses. speculative claims. are never
worth attention. regardless of how fervid may
be recitals in prospectuses. It is not difficult TO
find standard tested properties. In the United
States no business Of any sort whatsoever is
daily making larger percentage Of return 10
owners who are in right" who are identified
with the myriad yielding properties which make
up the marvellous national metal output
Reference was made in this review last week
10 the status, thus considered. OF the COnsOl-
idated Goldheld Company, whose properties now
command pre-eminence for their richness.
Though this stock. following the destructive
market influence OF the panic. sells barely
above half its par value. the very highest en-
gineering authorities have recently gone on rec
ord as certifying that there is already actually
in sight from $2O0O0.0O0 to $780, 600 00O of ore
ready TO be lifted out to Immediate market
enough TO guarantee at least an annual dividend
approXimating 20 per cent. of the stocks present
market price Investment opportunity like this
Is hard TO duplicate The GOldfield Consolidated
property comprises a number of vast rich mines
any one of which standing by itseIf-nOt COM
pared with its felOwS-0Ould be considered an
amazing bonanza The mill now running on
the property Is yielding profits approaching a
million and quarter a year-these profits OF
themselves sufficient TO pay the entire expenses
of the two additional bigger mills for which
construction contracts have been let; and with
these new mills there will be such increased
output. increased profit as viii naturally permit
the combined properties to distance all that they
in the past have been able to achieve.
Such eTnbarraSSmentS have been recentIy
imposed by the labor troubles at CoIdfeId are
promising TO disappear soon. and within very
short time il is the official expectation that at
depths lower than those from which the mines
are now being worked there Will be ShoWIusS
of material increase in ore values. GoIdneld
Consolidated, as a new mine-its richness
proven-has the unique advantage of being al
ready thoroughly financed 1t is not in tho
hands of promoters the outlook for new
capital 1t has debts TO be met no bond
contracts burdening its future Upon the ccsSs
trary. its treasury is filled with CaSh-upWarf5
OF million and half TO its credit in the banks
Not only is exhibit like this phenOrenaI-but tho
far reaching consequence OF such a situation
no optimist can Overestimate. A tangible apprs-
citation OF the fOrCerulneSS OF this fact shows
with clearneSS in official announcement at
the Close of this week that one of the most I'M
portant Stock Exchange houses of New York