New-York tribune., 1908-02-16

| Of manv things about 10 happen. important ans
/ influential. but actual accomplishments fan far
| short of forecasts.
New York City's bond sale may be considered
| as chief feature in the weeks record The Of
! fered $50 600 900 are six times oversubscribed.
| 1t is therefore proclaimed that $300,0000O0 of
| investment funds revealed ready for actiV-
| ity. That has cheerful sound Yet the state
ment may not quite square with what tne facts
are. Two elements are to be considered One
has to Go with the state of mind which IS re-
fected in subscriptions (whethef BY banking
institutions or by individually in large amounts
and small amounts alike IL is incidental to this
offering that bright prospects develop for
ognition of these bonds at their Daltry premium
| being welcomed into collateral VaiCe far Su-
perior to what at the present tney can command
through tne adoption by congress OF Senator
Aldrichs finance bill conveying TO these new
securities an intrinsic consequence much above
any current valuation
What in formation OF security market tudy-
ment must be weighed in any consideration IL
the volume of the subscriptions to this bond
issue has to do with the fact that in very large
proportion subscribers have been specuiasively
attracted. This speculative instinct. moreover,
finds vndicatiOn in the smart premium which
allotted bonds find forthwith in the outside mar
ket-a premium running 10 two or three points
Immediately. In many ways the alert Wall
Street specuator is able thus TO advantage him
self; his profit is not merely in gain he may
reap through prompt reselling Of allOtmen1s. he
has at hand the larger opportunity OF insight
into the fact that funds are not scarce but act
ually ready in large volume where profit chances
appear From another angle there Is iHpoF
tance This has TO do with the situation Of
savings banks through the country For rea-
sons that do not need TO be rehearsed these IN
stitutions during recent months have not been
large confident buyers OF securities When
panic conditions were revealed last fall conserv-
ative savings banks proceeded with all earnest
ness upon policies Of extra prudence They
became hoarders of cash And the record is
that New Years investments by savings banks
this year fall far below any average in long
time known With the return Of conditions
which most advisers regard normal these
savings banks are ready again 10 return 70 the
market for bonds. Yet. for manifest reasons.
they cannot afford to load UP heavily with mis-
cellaneous assortments- New York issues. under
the circumstances, have exceptional attractive
ness And il can be regarded safe estimate
that full 30 per of the accepted sUbscrip-
tions this week have come from these sources
The men who run the savings banks OF the
United States-not many OF them high-ranking
among bulletined fnancier-may be regarded
as typical and representative of what the
most conservative and conscientious business
elements of the country They are men VINO
appreciate and recognize their trusteeship re-
culating. They pat speculation aside. above all
else they seek to make sure the savings Of their
constituents. underwriting their own integrity
Thus. from any Wall Street stock market
standpoint this weeks bond sale NAV hardly Be
considered testimony TO any exceptional i'm
mediate reawakenins of speculative spirit
Next in consequence to the municipal bond
sale of the week is the action taken by Z H
Hartman and his associates upon the dividends
for Union and Southern Pacific These main
tanned dividends must be accepted as vouchers
of continuing prosperity II is OF common
knowledge that earnings from operations and
otherwise of these roads far exceed the sums
disbursed as dividends Hence. temporary let
up of traffic in nowise threatens dividend in
tegrity. There can be no criticism Of the pro-
priety of these declarations There cannot be
even hint that they are not warranted In
these times of stress when the Hartman roads
are exempt from attack. it is inconceivabIe
that dividends would be paid unless of abso-
lutely bona file character If the territories
through which the Hartman systems are
still capable of producing TemuneratiVe traffic it
follows by logical inference that the rest OF the
country is not in such wofuI shape Wall
Street bears declare Union Pacific and South
ern Pacific are serving their patrons at reduced
rates compared with those Of some years ago
quite to the satisfaction of customers. This
without any flourish of trumpets-Iust in the
plain ordinary, every day conduct OF their BUSH
ness
Nevertheless despite this splendid exhibit il
must be in fairness recognized that there is cur
tailment of railroad business, necessarily follow
ing curtailment of general business Much Of
this contraction may be of sentimental origin
very likely iS-but the contraction exists
evidenced by the long roster of empty cars upon
the majority of our railroads. In these condi-
tions properties not enjoying Hhe perhaps ex-
ceptional prosperity of the Hartman lines may
find continuance OF present dividends UnfaaSible-
The example of Missouri Pacific, a scrip
dividend basis, may peTchanCe he followed Nor
would such action be deemed unyviSe in certain
cases. The AtchiSOn system. for example, has 4
considerable problem to WreStle with at its next
dividend meeting. Conservatism is not unlikely
to dictate prudence. IL is a good sign when our
railroad and Industrial corporations meet con-
ditions frankly and fearlessly. Facts cannot be
shrked-to dodge them is to invite disaster.
Happily there is not apparent any disposition
so TO do
Take Pennsylvania s situation for exemplifcs-
tion. Official announcement is made that 1900
cars are idle Wages are cut Resort is had TO
conditions. attended by hard times procedures.
II is simply intellectual insOlence to affect ig-
norance of the facts or doubt To what natural
saH ueIs must be
corporations to be obliged go TO the
money lenders for accommodation soon. il is easy
enough TO figure disturbing cOnseQ
hint of which yesterday conveyed in title
aire there has lately been dealing with borrow
ers tand wOuld-be borrowers in New York
No hitherto recognized rule can measure ths
current situation Necessity. distress. came
suddenly upon our foremost baskers in the suns
of prosperity that nothing comparative can be
marshalled. They who fOrsSee dividend re1uc-
tiOns are not at all confined TO professional
CliqueS-
From the speculative point Of view there IS at
the moment nothing but bewilderment Apart
from some scattered liquidation. relatively in
significant. operations are wholly confined to
professionals. who. as always. are influenced N
their trading by any idle rumor promulgated
The result is an up and down swing OF prices
within comparatively narrow limits. confusing
TO the outside observer. At the same time Y IS
recognizable by every careful calculator tnat