New-York tribune., 1908-08-23
The Financial World.


collisions between financial leaders. even inter
national disturbances. were in the weeks SEN
sational schedule. In two or three cases the
tales current were definite Though In not a
single Instance there verifcation for the
bear chronicles, their effect upon the markets
tone was hardly TO be regarded as unnatural
for stocks had scored rise almost uninter-
rupted through weeks and months OF steady bull
campairning-and a reaction. according TO all
the oracles. was due
Many stocks had changed hands In the usual
sense there may not have been general "distri-
bution" for the public has been obviously shy;
but very clearly evident was the fact that mar
ket management had shifted from quarters
dominant in the earlier stages.
One group of spectators Coperators for
euphony) had sold out to another group OF spec
uIators-to ones Of apparent lesser caliore.
Thus technically. the market was weakened
spart from any general business considerations
leaving IT, however. dOubly sensitive TO such
tnAuences as the crowding runors and innu-
d I'M ~ s.rabaiisd As compared with a month
ago quotations average severe decline Bois-
terousness in the last half hour OF yesterdays
business will not inspirit conservative observers
Hartman stocks loom exceptions 20 the ex-
hibit They not only stay strong they figure
In a wide market actually exclusively their own
With Rock Island and its allied properties pitch
ing downward. with New York Central drop
ping ten points in ten days. Southern Pacific
sails serenely UP TO a new high record. crossing
par for the first time In its history.
From varying viewpoints here are curious
Kaleidoscope twists-an increased dividend pop
uIarIy forecast for Southern Pacific; receiver
ship prophesied for rivals in the same territory
and Wall Street affecting to recognize the
spectacle as merely a matter Of course.
AS 10 Rock Island and the st. Louis and San
Francisco companies It has long pleased Stock
Exchange sentiment TO assume inimcal attitude
for no tangible or more defensible reason than
Just because IL has happened TO be the fashion
That these combined properties. tth their thou
sands of miles Of operation, are well o7cered.
that b. F. Yoakum and his neutenants rank
among the very foremost OF efficient railway
managers. trained and tested upbuilders. that
there has been in both systems years on years
of continual healthfuI expansion. that their rec
ord Is one Of phenomenal progress-that there
Is anv good thing In the Rock Island Frisco
situation Wall Street has sedulously ignored
CareIessness of facts is no drawback 70 wall
Street Judgment, petty partisanshlp oHsetuns
fairness One averment has been that Mr.. Yoa-
KUN no longer personally directs the physlca4
operations of the system. that he must conrne
his attention and energies 10 financial adminis-
tration: but this is largely Overdrawn criuClsm'
No practical railroad head the country over keeps
/
mono oftener tours his system. not one comes
into contact more intimate than this man, VINO
nersonalIy knows virtually every responsible
subordinate on his rolls And Yoakur1 further'
has the unique position OF being almost idoiizeo
bv the rank and file Of the tens Of thousands OF
his employees. They remember him as Iexas
lad billing freight and unloading cars down san
Antonio way-they realize in him one OF t1en-
selves lust grown-up.' Hartman drives 1oa-
KUN leads Wall Street says yes 70 tnlS-oVL
processes 10 like the driving pest MT nd, vi
man is exalted Mr.. YOakum Is grilIed M
Harriman's stocks bound upward Mr foaKnms
fall with a sickenins thud Wall street PolnLs
to apparent wide differences IN theiG eaIHlIsS
and financial records. Superhctally tne cOIlpaF-
ison seems conclusive. But fair consideration
will note one vast qualifying factor What ROCK
Tsiand fs today Southern Pacific used to be.
Six per cent dividends and premium price Ior
its stock have come by no rapid transit route
for Hartman upbuilding was slow ana meas meas
ured and tedious even revolving to those IN wan
Street who now most clarnorouS IN 'Aelt
pIaudfts E H Hartman never seemed 70 care,
he inst went on building And II Mr. Yoakum
is more sensitive he isn't showing lt-IaClns In7
same problems. he appears similarly lnattentIve
10 the quibblers and the carpers Patience ana
| persistence are better than nushroomins.
Southern Pacific not built in a day
What more than ordinary factors may soon Dc
counting in the security markets can be expected
/ as reflection Of the fast that the rich financial
institutions Of the country must look to invest
t
/ tory interest returns IN many ways there Is
forecast of this And such exhibits as close
/ this weeks market-sIerdard stocks and mis-
+ ceIIaneous ones alike being tossed around IN
hvstericaI fashion-can only have the result
! immediate and absolute. Of driving conservative
/ people away from issues subject 10 such per-
/ forrnances. driving conservative people into an
: investment market wherein sanity prevails
4 Even before this tag game began 70 exhibit
/ itself. the bend market had brOadened; and IN
/ dications were manifold Of a readiness on me
mart of investors TO absorb that volume Of bonds
/ So much in evidence during the last year oI 80
/ II has been one OF the anomalies of recent mar
ket development that while speculative s''CA'
,ere uf.i,,r in price and apparently In large de-
mand standard bond issues were purchas1o''
ON a still better basis of yield. Bonds which
are safe beyond peradventure have been aVaH-
: abIe-stin are available-at an actual bargain
price Some notable examples have been poiii'eu
ont in This review. None affords better tHus'ra-
tion Of this attractive market opportunity Than
! the Missouri. Kansas and Texas hrst ana le
funding four per cents. which begin 70 sh0W ,He
tonic influence of investment absorption Ia
some notable ways this bond has superiori'y-
the guaranteeing security back OF II being eN
ceptionaI But IL Is typical OF long hst %
,ntr,nsicalIv rnerttorious issues. To such bonds
II is fortunate that our financial insti'u'O-'
can turn able in such investments 70 advan'4se
by A larger net return than they can hope lo1
some time 20 come TO obtain from loaning their
/ funds The owner of X. T. refundins four per
cent bond nets at the present price vir'uaN'
five per cent. upon the investment-and tl@, ma,
! twice what average Wall Street loans are hS V-
/ bringing or are likely bring-whlie 10