New-York tribune., 1908-02-09
The Financial World.
TFE TRTBUNE'S FOREICN NEWS. ~

The stock market Tcses for the week uns
satisfactory-actualiy scpressiHs. Quotations
throughout the list are weak Strength shows
nowhere. oracles hitherto optimistic change sa-
tireIy their voicefuIness. Some bad Develop
ments are recorded IN trade. IN industry. in
commerce.
As to the fnanciaI--the banking-condtion
changes are not material though the Clearing
House exhibit of yesterday is not the inspiration
anticipated. Surplus reserves retreat again
Perhaps there is some basis for the cynical the
ory that these weekly bank statements are too
much the toy of bank managsrs-are ar
ranged that they can be made 10 present condi-
tions helpful hurtful, just as banding exi-
gencies (banking plans for prOhtJ may require
But yesterdays figures are big Deposits de-
crease. legal tenders decrease. specie decreases
circulation deere aSes. natlonaI deposits decrease
these items contracting upward OF $4,000 090--
while the banks of the city are called upon Z,
loan s6,000,000 more than week ago. Ia this
situation surplus falls So. ."eH. GOO.
This sort of thing is much different from wha.
all the optiTnists have been promising. We vera
going 10 have surplus increases bigger and big
ger every week. The time now had finally coma
when funds bound to be cheap becaus,
there was to be not merely abundance Of flnds
for borrowers but surplus tremendous beyond
usual requirements 1t has even been nuch
paraded that what ordinary people might regard
dscCUragins symDtOms-ge neral trade recess
sion, commercial conservatism. industrial dis
turbance-mUst show the prompt sequel Oe
funds abundant to an extent that interest rates
must fall materially. All this Cheerful horoscope
ing goes wrong
Among current Developments nothing sur.
passes expressions which at the close OF ira
week go upon record from such financial and
Industrial authorities as George w Perkins and
Ebert II. Gary. Mr. Perkins. in a carefully
considered addTesS-one entitled to rank as a
classic in review and exposition OF relations be-
tween corporations and the public-deciares un.
equivocaIly for national supervision through IN
teIIigent fair minded oficiaIs-this view =.
lyIve LVl0FH heTVl ~aFf
ally every corporation manager who to-day II
alive to his responsibilities TO the future grovrb
Of the country and to the enormous opportuni-
ties before for foreign trade-a policy uoe
merely acceptable but sure Of ready welcome
Mr.. Perkins considering ideals, sees ahead even
the possibility of railway Board of Control AZ
Washington comparable in dignity With the
United States Supreme Court. even approaching
that institution in public confidence And Mr.
Perkins looking forward 20 a new era Of ccn-
structive corporation development, attended by
such rational supervision" adds
I'm spite Of persistent determination to mislu-
derStand or ignore his real purpose the fact 4,
that President Roosevelt. from the time thai he
was Governor of New York down to his message
to Congress last week has repeatedly proclaimed
his belief that modern Industrial conditions ara
such that combination is not only necessary but
inevitable; that corporations have come to stay
and that if proper-y managed they the sourcs
OF good and not evil
Judge Gary. able to speak from the fuInss,
of experience scarcely open 10 any, other
industrial leader OF the time. says this:
"The policy OF the present administration.
whether it be criticised or praised, whether its
methods be regarded satisfactory or unsat-
isfactory, has had great and pei sUnaI in1uencs
upon myself, happening to occupy position Of
responsibility; and in making this personal ap-
plication to myself know that the rei1eratioa
of the oft stated principles Of the President et
the United States has increased my feeling ot
responsibility toward the stockholders I repre-
sent, toward our competitors, toward business
men and toward the public-and that our rea-
tions have been improved. / don't hesitate To
make this confession--for according 10 my belief
the policy OF the administration has mad5 per-
sOnal, emphatic and permanent improvement IN
the way in which DO business Business Is
dCne better basis and higher plano
because Of the policy of President Roosevelt"
Such declarations from such authorities mus:
far outrank in any sane consideration all Of tta
hysterical outcries of miscellaneous folk who
are filling Wall Street with rhetoric and rot
George Perkins and Eibert Gary are who
knOw-the two actual executives who beyond al
others have had TO do with the phenomenal up
building of the United States Steel COrpOration,
premier not only in its bigness among industrial
Institutions of the world but premier well ia
perity. the safeguarding OF investment interests,
the assurance of stability for labor and capital
co-equally
Railway earnings are bad Week by week
they grow worse Gross figures are dscouras-
ing; exhibits are distressing This is very
different from what has been promised BY
prophets affecting to be superior To ordinary
recOrds-it being easy and popular to Crtcisa
and chde practical managers who for months
past have been looking forward 10 troublesOms
times for the beginning of this year. Truth Is
that there seems to be a scare travelling
throughout the country. and what at the start
seemed TO be only sentimental becomes at the
end chillingly matter-of-fact- Take the New
York & New Haven system. for exanple-such
shrinkage no prophet ever would have dared
forecast-great shrinkage in gross. greater
shrinkage in net.
And by way OF exernpIifcation there is Atchi-
sons report. just issued. serving as f0rceful
illustration Gross earnings fer the last reported
month expanded s1S3.00O. but for imr1ediats
sequel net fell over 100000. while for the first
half of this fiscal year gross gain OF nearly
$4,000 900 has been actually converted into
net decrease of considerably over $350a00a
These are signifying fgures-and all the moro
in view of the fact that official calculations
have been forecast promising substantial re.
ductiOn in operating expense percentages And
unfortunately. 1t is not expected that January
figures show any turn in the tide. Il Givi
dends are TO be maintained at the esJaDlsneo
rate (and paid usual in CASH the rer1alnlns
five months Of the year viii have indeed 70 proVs
themselves record breakers OF course Atchtson
can find precedent in the recent action Of MS.
souri, Pacific-sster Southwestern systen-1
even temporary resort is had &c making It's disl,
as most unfavCrable policy for Missouri Pa
Cifc seems now generally 70 be reccgnlzea ~
having been conservative and bound Gin the ions
run) to prove beneficial. \ former Archtsoa
management made historic mistakes. payns
dividends that were not earned
What is unfortunate for Atchison Is that sorlo
elements in it's ranagement have assumed "
discipline the United States government Otce.
superior persons attempting these tactics are rs
bOaStful of results The United states soNe.x1.
ment, instltuting proceedings against the Al~--
SON. will be able to ask accounting as 10 reoaLss
and TO various other things IL is U-rortunS..s
that the AtChison should get into this broh- p-s
If there is 10 be fighting and II the AtcHiss
does appreciate what is involved. there m.,
after all be excuse for change In the Atchison,