New-York tribune., 1908-06-28
The Financial World.

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spirit Of dessructivensss"-to this sen.,ro.r,
enunciated by Mr.. Taft. business cond,,,o,,
promise soon to have readj Istrnent Wall g..
hearing the gospel, has not yet much oroc.sd.d
i'm celebration OF II. But the "spfrit' zro,,
fructifies. and in varied ways II Is NOT t,,,-oL
able that we will have appreciation conssousn.
tial
In no very large way is the security p,ar,..
weeks past. Upon all sides there is understand.
ing OF the fact that in at least two basic .ls-
ments conditions improve tremendously gonsv
gets plenty interest rates fall down: banx,,r
inpositions OF last year ard the year before ar.
not likely to be recurrent this year Aldr,rn
LEGISLATION takes care Of that Crop condition..
are not merely heaIthful. they promise phenoa1
email records. Upon both Of these accounts the
financial situation has fundamental strength
BY no comparison OF recent years IL the current
status made to appear other than most attrac-
tive.
During this week we have had some notasl.
corporation action touching dividend policies
Though all the speculative fraternity had ad-
vance information to the effect that the Amer
lean Locomotive Company would have to cut n,
dividend rate even II IT did not have 20 pass ths
payment altogether, there came official dscara-
tion for the full amount. And 50 in some other
quarters there was disappointment for similar
pessimism. In some instances official announce
rnent is made that while present earnings may
not chow dividends fully earned there IS IN every
case an availabfs surplus fund upon which d.
rectors feel warranted in drawing-surpIus Gre
ated by earnings In excess OF former dividend
requirements. and now to be regarded as held
as actual trust funds availabls for Just such
exigencies as temporarily arise n the fall
ing short OF current earnings. In situations Hks
these it needs slight argument to justify ths
reasonableness Of policy Of such sort
Incomparably the record IN it's heaithtulness
arises in superiority to the petty principles TO
which the Big -Four railway company has Just
applied itself-externinating dividends in toto
for the mere reason that in a single fiscal period
required disbursements were not provided
through net earnings-surpluses in every si-1t-
lar period for years and years past having gons
on record-and, concidentally. there being
equally of record the fact that the chief propris
tor Of the Big Four Railroad (the Lake Shors)
has been publicly. persistently. and upon whole
sale scale buying Big Four stock at double ths
price where now the shares are quoted Invest
ors were prompted 10 confidence IN Big -Four ~
reason of this continually proclaimed Laks
Shore procedure. NIincing words is emptiness
The Big Four incident is bad not only in one
way is bad I'm many ways. Were it a PERFORM
anCe from ordinary quarters there would De not
merely criticism Of il, but denunctatdn II
Lake shore wants to absorb every outstanding
share of the Big Four company there could per-
haps be no more practical campaign attempted
than fs disclosed in the official vOte-the Lake
shore yote-tO withhold dividends from all the
lesser investors. Big Four surplus IS big. 1t IS
made up chiefly of resources when actually
belong 10 the dividend account OF Big Feur
common stock hoIders-whO now are mulctsd,
Disseminated against-perhaps made scarable
into selling out stock which Lake Shore Wants-
For the very reason that pre-eu1nenr interests
stand for performance like this. for the reason
that any such performance scarifes investment
confidence the incident is deplorable over TO the
very edges of scandal
Politics has so much Of dominating interest at
the moment that it will not be strange II We
have dulIness, even apathy. pending the making
of nominations at Denver. In Wall Street. how
ever. it is to be depended upon that the naming
OF Mr. Bryan will be regarded as mere pre-
Ijmfnary TO default against Mr. Ia1I ana nnan-
ciaI interests will proceed upon the theory lndl
thew can go forward in resolute confidence that
there is reliance to be placed in the doctrine Ct
"the spirit Of progressiveEess, without tne spHII
of destruCtiveness.
Material advantage was given 70 the wall
Street situation when Mr.. Morgan, sailing away
this week, said:
"1 am very optfn1istic about the financial stu
alton There have been many Improvements N
the period embraced in the time OF my depart
ure from here some months ago, ana t17 lut4-0
looks very bright. indeed
Wall Street has Iearned-nobody nowadays IN
Wall Street ever doubts-the certainty OF 'he
sincerity of ]. Pierpont Morgan whensoever 10
expresses himself upon any subject IN any way
When he specifically speaks Of many improve
ments" the sfznifCance Of his declaration is not
in any way to be foTe-shOrtened by theory OF
explanation which suggests anything else than
the utmost frankness. Investors Of any expert
enCe recognize the hallmark of assurance suCH
as Just now he gives And the consequence
Tnarket-wiSe is not measurable
In other important quarters the Morgan e1-
preston is hailed applaudtngly. TAKE. loI ~ ~
ample. the Standard Oil entOurage-PrlnClpd-s
and clientage-not hitherto inclined toward any
Morgan appreciation. Yet is the status no" "a
any way there antagonists. or queruou<. 9.
ouizziCal even? AS Mr. Morgan stands. so from
surface indications it may be taken TO oe IIe
that so stand also the Messrs- RockefelIer. 1ll.
Rogers. Mr. Archbold. and the rest Ihere =
no army now Of opposition to optimism II 20
far as capital is concerned not one thlnS ~. NJ
can be desired than the subscription WIZ. -
shows to the doctrine that the American syn.
is the spirit of progressiveness. WITHOUT '1'
spirit of destructiveness.
What. in view Of all the prooaoiiltles. seems
surest in market prospects now Is that II VIII
be profitable for investors TO add conservatlVes
to their holdings at present prices NeS'-ils
house is bargain United States Steel GJl,
mon is phenomenally cheap lnternatloni l1A--
vester is selling far below the vaiGe oI "