New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-10-04
The Financial World.

,resk indicates a vast deal that Is in conflict
with what popular prejudice has been insisting
rpon. Southern Pacific is up Ewo points. Union
Pacific has advanced five These increases have
come at the end of the week Incidental to the
ouotation Improvement there has been much ex-
mansion in trading-alrnost five hundred thou
SAND shares OF Union Pacific traded in during
the past week.
what chiefly has disturbed the position ot
specuIators committed to depression was sig
nailed in the official monthly report OF earnings
bv the Union Pacific couple Of days aso-a
gross decrease in August earnings OF $4,000
fyyaI1 Street expected ten times the hgureJ ar
.ua1Iv converted into net Increase approxi-nat-
ing 300 600 Record like this Is not exceptional
merely; it is unprecedented; and why shouldn't
speculative interest and investment cOnfdencs
be consequentially attractive With much
hurrah it is insisted that the Union Pacific
showing operating expenses below so per cent
Of gross earnings makes an exhibit which can
not be maintained: but criticism OF sort Ike
this is nonsensicaL There can De dispute = the
financial statement upon no basis other than
the readiness Of proof that there is official
falsehood-and nowhere from any source IS OBJ
tainable any suggestion challenging the record
The truth IS that all Of the Hartman stocks
have been under the harrow. have been assaIed
bv SPECTATORS and crowded by every possible
adverse influence, the theory that somehow
some time there might be a sensational dis
closure that actual conditions differ from official
representations.
This is campaigning in pettiness. The SANE
oracles who are prOclaiHling now that Union
Pacific is dangerous were eq1aiiy-even more
vocferous in making the same proclamation
when Union Pacific was fifty points lower
They nothing for facts; all that they am
at. all they ask. is opportunity TO befoUI Harri-
man And that that man does not seem TO care
exa ggerates their hysteria.
The conditions behind this market amply ex-
plain the strength shown Everything bas.-
discovers Itself in sound condition There can
TO longer be any question as to the continue
tion-or. rather. augmentation-of agricultural
prosperity. Crops are harvested Of oOuutitll
extent and are finding ready markets at highly
profitable prices. Discussion q crops as factor
can be postponed till next year. he farmer
and the cotton planter close this season with
larger bank accounts than in 1907 This fun
damentaI factor has intrinsic weight II shap-
ing stock market destinies- In natural sequence
industrial reCuperatiOn must follows follow
ing. The disturbances due to financial stress
are passing into history-are no longer gov
erning influence; only the echo Of them remains -
Testifying TO this is the steady growth OF orders
in the great steel business the resrployment
of hitherto idle freight cars. the cheerful re-
record Of commercial failures and the healthy
conditions Of banks Of deposit Each and ali
exhibit not only convaIescence but actual re-
cOvery-
Perhaps the only irritant left IS the natural
nervousness always incidental in the business
world during a Presidential campaign. Even
this is by means so prominent as il has
been in preceding periods-the questions at
issue, from the strictly Wall street point Of
view. not being vital The European investor
recognizes the indiSputabie fact that scores Of
American securities OF undOubted SOundness
can be bought at prices yielding an income 81
perior 70 that which he can obtain at home
With such facts in evidence the American IN
weston need feel nervousness when Wall
street professionalism INDUCES in occasional
acrObatics. The spectators who deal in fuctu-
ations cannot DESTROY values-CannOt even in
pair them more than momentarily. Actuairies
must and will govern
Two or three official dividend declarations %
the week have market in1uence-two or three
moves that have to do with dividend considera-
tions. One OF prominence has to do with the
International Paper COMPANY Disbursements
upon its preferred shares are cut in two Rea-
sonabe explanations are made in this instance
and so in other quarters there IS indication @,
good business sense back Of official policy.
These are exceptional times: exceptional fiscal
policies are necessitated- II is still within
dividend disbursements there can naturally
come heIpfuIness TO many corporations 7
would be easy TO cite instances wherein offcial
determination to foregO dividends temporarily
results in the pronounced strengthening Of the
corporation. An nUmnative example is pre-
sented by the International Pump Company
That is corporation which has been making
large earnings ever since its organization Il
pays substantial dividends upon its preferred
stock Cyieldins investors S per cent? and until
little while ago was disbursing per cent 70
its common stockholders Much more than
| this was being earned for a common stock divi-
dend. But the managers Of the company upon
a canvass OF the business outlook resolved that
It would be we'll to suspend common stock divi-
dends for a time and devote that fund 70 deyel-
opment and expansion of the company's pro
ducing plants. This has. meantime. aggregated
some millions OF betternent. One American
plant has thus teen built at an expense Of s.
100000. and an equal amount has been expended
abFoad-the corporation actually bettered in rs
fiscal properties by some $4,000. 600 S6.000ooo
in plants by reason of the Withholding OF
common stock dividends and SURPRISES earned
What fiscal policy like this means is not hard
| 10 calculate The sequel must be that in leu
| of the per cent. common stock dividends for
merly available there Will be soon the posi-
bility OF very large expansion of that rate. IN
the current stock market international Pump
shares have been showing some buOyanc-- They
are entitled TO much further Importance
1t was pointed out in this review a week as'
that he basis Of progress Third Avenue
Railway shares were intrinSiCally cheap. and u
indicated that in all probability the price
must soon materially advanCe-there being ur-
gent necessity upon the part Of certain com
mitted interests to obtain control of the Third