New-York tribune., 1908-07-26
The Financial World

tsut so rronounced was the buying disposition
so very large the absorption power. there were
no recessions Of consequence anywhere re-
corded: indeed until the announcement of
President RooseveIt's protest against the re-
mission Of the sins of the Standard Oil CON-
pany there was no exhlDlI Out tldI Ol COn-
hdence and buOyancy.
PINT clever specuIators fell upon the Presidents
! statement as text for the preaching OF what
they are pleased to call conservatism Prices
fell quickly, fell substantially Timid holders
of stock were naturally enough scared ous ot
their commitments while the professional eie-
mont created a new short interest OF conse-
quence.
Europe was the chief seller OF stocks on this
curio scare. To some extent this was de-
velopu,ent of consequence beyond what in
superficial way might be estimated European
purchases of American stOcks-becoming pro-
nounced a month or two ago-were based pr
rnariIv upon the belief that corporation difficult
ties here were no longer a governmental issue
that progressive corporation managers were IN
aualifedIy ready to recognize responsibilities to
the pubIic and so take themselves beyond the
pale of lawbreaking liabilities And at no time
in anv way has there developed any indication
that this view was wrong view-which makes
II appear all the more strange that there should
so suddenly spring up the rush and hurrahs Of
,,essir,isr, which were fomented the moment ju-
aic,.l determination was handed down calling
for a new Standard Oil trial silly tales n weird
varieties were given whirling circulation And
II could in no way be accounted SudlSe IAdc
quotation recessions were recorded
Fact "a after the sustained rise OF month
or more a substantial reaction was due Ihe
Presidents statement happened merely TO como
along at a time opportune for spectators on
the outlook for a text The close Of yesterdays
oayIv- The for
the reaction and the consequence OF the reac-
ton had both passed An extended short IN
terest is in the market Stocks held oy weak
interests have been Hquidated- Conditions IA
vorabIe 10 an advance are more clearly dis
closed than hitherto they have been Ihls week
ought to be a buoyant week
Business conditions improve. Cynical CONVEX
! satfonalists affect to smile and scof at every
report of better things. however accredited
In so far as professional Wall Street critics are
concerned the uniform reports of the mercantile
agencies and manufacturing authorities can Be
entitled only to skeptical comment Real men
of affairs show different disposition. In sober
commercial quarters there is recognition Of the
fact that the tremendous natural COnsumptive
demand of the American people can have no
other sequel than the enlivening Of every branch
! of trade-for through at least year our pub
| lie has been economizIns, postponing purchases.
making doubly sure that the day Of resumed
activity must be attended by elements far out
of the ordinary
And as pointed out in this review a week ago.
a cheerful feature of the current revival is that
the betterment begins and most expands in
New EngIand-just where recessions and con-
traction were earliest aggressive. In Massa-
chusetts and Connecticut in all prObabil we
will. indeed. have the actual leadership for our
new good times
One tremendous railway deal believed TO be
impending If not already wholly accomplished
has TO do with the future of the New York.
New Haven and Hartford system, whose Boston
and Maine ownership recently transferred
into Connecticut bankers name Important
Wall Street interests see in this transaction an
accomplishment of far-reaChing consequence.
They believe that the purchasing banker pro-
ceeds under trusteeship for the Canadian Pa
cifc Raflway-that the Canadian Pacific has
become the owner Of the Boston and Maine
property-coincident. of course, with an agree
ment which will protect the New York, New
Haven and Hartford.
And to be regarded as directly bearing upon
understanding like this. it is disclosed that very
recently the New Haven and the Canadian Pa
cifc have been negotiating plans whereby
Southern New England freghts can be sent
West TO the mutual advantage Of these two
properties. without the imposition Of any extra
burden upon shippers Manufacturers at Stau1-
ford and Norwalk Danbury and Bridgeport and
Waterbury. New Haven and Hartford. can be
given through freights West. via Canadian Pa
cifc at a rate which will give them deliveries
at St Paul and Omaha and Seattle. and else
where at a figure less than could be COM
/ manded for transportation by way of New York
"a substantial differentiaI allowance being COM
manGed by the Canadian Pacific route Thus,
instead of an average Of fifty miles haulage
over the New Haven to New York the New
Haven will be able to collect for an average
OF more than twice that distance over its own
/ lines. and contribute equal mileage earnings 10
the Boston and Maine before delivery TO the
Canadian Pacific at the North. whence 10 its
final Western destination becomes actual rev
tonnage for the Canadian Pacihc-earnlrgs
never hitherto commanded
There has been nothing In the public prints
indicative of any deal like this. But before
long the information will become official To
the New Haven system the relationship
will mean much. and to the Boston and Maine
still more; but the tremendous gamer IS Ga
madam Pacific. Through this new New Haven
alliance the Canadian Pacific comes into New
York City upon basis never until now re-
garGed in railway circles : possible From
every shipping point in New York City Canadian
Pacific. by this coup is placed Immediately
every trans-continental system in the United
States
Canadian Pacific stock becomes worth more
than ever hitherto IL sold at.
Another railway transaction Of importance
having do with New England interests cen
tres in The future Of the New York. ontario
and Western Railroad. Control is now owned
by the New Haven system. But the New York
Central holds option from the New Haven
good for the rest of this year. whereby ma
jority Of the Ontario stock can be taken over at
something over 500 per share. This is figure
higher he