New-York tribune., 1908-02-02
The Financial World.
THE TRIBUNE'S FOREIGN News.

selves with government plans President RooSe-
yelt's message at the close OF the week oufranks
every other topic discussed In financial circles
And Stock Exchange oracles affect curious atti-
tudes ProcIaiming that the official utterances
are of no account anyhow, bound soon 70 5s
forgotten, they hurry into excited denunciatfou-
Very strange misconceptions are advanced as to
the puolics sense
Pose like this is not, however. assumed ~
those nnanciers who OF themselves have ccnse-
auence enough to be actual leaders. Where
concrete interests are largest there is no parade
Of professed indifference to the declarations Of
! Washington that national laws are made 20 De
observed-that where past laws have proved
inefficient where present laws may faH short.
there needs to be and is bound to be effective
remedy provided All apart from consideration
in this review OF any detail touching politics.
any Wall Street performance. attempting To
make light of the seriousness with which Pres
ident Roosevelt addresses himself 10 vital issues
can be regarded only as foolish and~.utile Just
from merest market standpoints
The UNHAPPY fact that some groups OF spec
uIators started in last month 10 organize pools
and promote manipulative market plans does
not alter the proposftioE-SaVe 10 make market
conditions vet further disadvantageOus-
These new pools, aiming to exploit better local
money market conditions (hurrylhS 70 get TN
loading chances) become. indeed, menaces al
most as great as other factors TO which Clearing
! House authorities have had to address tAsm-
+ y
to eI1cb brave and patriotic work as New York
banking leaders have recently been responsible
for if foremost among achievements shouId "a
mere hash-in-the-pan stock .I.laTAet disPIays
Such things do nobody good They are dangers
And in no way has there come support from
any conservative quarter
Market values stay still far below intrinsic
! values But no intrinsic value can be helped By
any mushrooms market movement Inc Inancial
world must have eGuanlTnlty a0soluVs dhead ot
any booming processes
Among business events Of the week importance
belongs to the report made by the ULl1ed STATES
Steel Corporation for the closing quarter OF last
year This report discloses large shrinkage Of
earnings in Decemler and it is common AnoTl-
edge that similar conditions existed throughout
January But consensus OF opinion at recent
meetings of steel experts is that prices should
he maintained and that there is reasonable hope
of NOT distant trade recovery AS for the Steel
cornoration itself it is so amply fortified by ac
c,ImtIated earnings revealed IN a large surplus
that there can be question or us aDlllty 70
1ritbetand tenporarv depression, 30 meet all
fixed charges as we'll as TO maintain the dIv-
dends on its preferred and common stoch5. And
the present situation is clear testimony 70 the
wise conservatism of the Companys manage
ment in maintaining the common dividend al a
low rate through financially constructive PERIOD
In these days of revelations OF uhSdNoi! nleAoes
IN certain quarters of high finance IT makes Tor
stability and confidence to find our premier cor
poration conducted on lines Of such ultra pru-
I dence and safety
| Business recessions are corrsspondingly shown
| elsewhere as in the steel trade-tasng for
barometer the earnings records which our m
portant railroads currently present When Bal
I tiroore & Ohio's figures came out there was
general shudder for reason OF their very shasl'-
ness; but equally general was the hope that SIM
! liar exhibits would not be Forthcoming else
! where; but it is. unfortunately, TO De recorae'
| that the anticipation meets disappointment And
! the bad showings are confined TO no district:
virtually all important systems are finding dis
appointing results Atchisons report, Just Is
sued. serves as forceful example. Gross earn
| inss during December expanded S1S3,0ee nue lsr
immediate sequel fell over s30o.o0o, While for
the first half of this fiscal year a gross gam @
| nearly s3.O9o,Ooo has been actually convertea
into a net decrease OF considerably over S5,9uV-
900. These are siGnifying hgureS-aho an tAs
more so in view Of the fact thaI Olrlclal C34culd
tions have been forecast as promising substantial
reduction in operating expense percentages Anu
unfortunately it is not expected that January
| figures can show any turn in the tide II dlvi-
| dends are 10 be maintained az the esJaoilsned
rate (and paid usual in cash) the remaining
five months of the year Will have indeed 20 prove
! themselves record breakers OF course Alchisoh
! can find precedent in the recent action OF his.
| souri, Pacifc-sister Southwestern system-h
even temporary resort is had TO making IT'S GiVl-
| dend payrnent in scrip What at the start was
hailed as most unfavCrable policy for MISSOURI
Pacific seems now generally to be recognized as
4
! r,1n) to prove beneficial a former Atchlsoh
| ma nagenent made historic mistakes. paving
| dividends that were not earned
! Official compilations show that railway earn
! inss so far reported for January are between
| IL and Is per cent less than in 1907: and re-
| ports from conspicuous systems due this week
| are not expected TO improve the comparison
| Yet a. canvass in commercial quarters indicates
| some tendency toward trade improvement tnefe-
| Mercantile shelf supplies are down 70 the very
| limit of demand the country over; and so lsr
| as retail conditions are concerned there seems
| to be agreement among authorities that even q
slight expansion in cOnsumptIye requirements
| would forthwith induce activity when "oaId %
felt in ali manufacturing quarters WHAT seems
to be disclosed of encouraging character agpeA1'
in a general trade view that recent nlUSh PtC,
claimed cuts in the price Of certain Standsru
, cotton goods had much less 70 do win curren'
| business conditions than with tacIlCal caInPaisn
ing to permit the making of advantageous 'esIss
| with manufacturers for a new seasons Supply
/ Anyhow trade sentiment has not been nten
| disturbed by what at the start was rotted ou1
as a general business scarecrow Gotten NAN. lnAnn
facturers at least. have displayed no CoASeQ1eHs
nervousness
Some flavor of old times is brought INTO 'no
market by legal proceedings instituted 70 in'ee-
| rtpt financiering plans of Delaware & HudsoS
Bond holding interests seek the interpositiOn o'
the Public Service Commission some eonse-
ouentiaI charges are made: and innuendoes az
plentfful-there being entered for defence tas
allegation that the action started Is noL ~ 80 80
faith but intended merely 70 further s. ue1
campaign in Delaware < Hudson sOocN suo-,
| ever this may be- there can be good rsSults 49,
any inquiry which may put at rest SucI s'a.s.
ments as have had Wall Street elrculaCon - -
! market effect 1t would be a health1ul- hep,rSs Ss
development il Delaware & Hudson ItSe- Wo-s 49,
Join in insisting upon complete and clear sHa.s
| sis and exposition of all its booAkeepu.ss ssi,s