New-York tribune., 1909-09-05
The Financial World.


way up professional Wall Street has derided the
upward movement of the Steel stOcks-but the
smallest capitalist. relying upon the integrity o,
the Corporation and informed of the tremendou,
business possibilities apparent in the steel busi-
ness. has persistently bought outright the COM
mon shares of the company, until to-day many
more than hundred thousand shareholder,
own Steel common. There is deep significance
in this steady upward market movement 7,
means public appreciation OF the fact that
American industrials are longer TO be re-
garded dubious Investments. The old DAYS
of speculative turmoil. when. for example. Sugar
and Cordase were mere gambling counters. have
passed away. American industries in these
times conducted on serious business lines
ara not the mere playthinss of Wall Street op-
orators. For this radical change all credit 4,
due to the United States Steel Corporation
which inaugurated the policy Of taking the pub
lie into its confidence. publishing full frank
statements of exactly what IL was dong-abol-
isEing mystery The natural sequence is con-
tinually growing confidence in the validity and
virility of American Industrial corporations
Steel sets the pace-other industrials must per-
force follow the example remain discredited
The disfavor which has attached to industrials
compared with railroad securities has been
almost wholly due to the mistaken policy Of
suppressing news. That there are tested in
dustriaIs OF the gilt edge variety-investment,
of the highest characters testified TO by such
stocks as Pullman Palace Car and Singer Sew
ing Machine. in which 1t Is to Wall
Street transaction recorded. They are Just as
tightly lodged in strong boxes the bonds or
stocks Of premier railroads. Indeed there Is no
reason whatsoever why industrial company
under able and honest management should not
find just as full favor any railroad issue.
as for railroads. The connection between the TWO
species OF securities is indissoluble
Many Illustrations might be cited OF Industrial
stocks entitled TO command complete investment
confidence. An illustration is found in the
Westinghouse issues. which have behind them
the absolute guarantee Of the good faith and the
business ability of George Westinghouse And
yet another is Harvester, upon which divi-
dend has yet been declared but on which divt-
dends are so assured that II reaches a quota
tiOn around 80 before any disbursement what
ever is made. These and other examples all
reveal growing public appreciation of the tre-
mendous intrinsic strength Of American indus
tries. Conditions and ascertained facts GER
tain to bring these industrial stocks into greater
and greater favor as mediums OF investment and
speculation
Meantime II is a safe assumption that thoss
railroad stocks which have been leaders will
continue IN the same role. Union Pacific.
Southern Pacific and New York Central natu-
rally suggest themselves as part and parcel of
plates the fulflrnent OF the dream OF the trans
continental system Passing beyond the vision
airy stage. this ocean to ocean line becomes a
nearby fact. And in this grouping Erie will be
important factor. 1t is certain that Mr. Har
rirnan now dominates Erie II is equally GER
tain that IN any transcontinental scheme OF
railroads Erie be utilized as a connecting
link 10 Just as much advantage New York
Central How plain this must be TO MI Harri
man. whose personal residence is on the Erie
line. needs comment.
One railroad in clear position to enjoy sygift
market Improvement is Denver & Rio Grande.
The great disbursements IL has made in prepa-
ration for the handling of that new traffic which
Is assured TO it by the forthcoming basiness of
Western Pacific VIII prove a phenor1enaIly prof
liable investment II is reasonable supposi-
ton that the time is not far distant when Dem
yer common will be earning handsome dividends,
In consideration OF the market course for rail-
road securities Importance must attach to what
has already been accomplished and TO what i'm
pends. There can be no reasonable doubt that
the Hawley programme for the development OF
the Chesapeake & Ohio property VIII find graft
Tying fulhlmenr Mr.. Hawley is net an idealist
he Is practical. His plans for this road
not yet disclosed. but it be accepted as
certainty that he means and will bring about
accomplishment which will mean much 10
Chesapeake & Ohio
But. certified by the current Steel record. the
market is nkelier 10 be responsive in the indus
SEiA! IMAM TIE railway quarter tOr tAe present.
There are intimations-entitled even to be
garded official forecaStS-Of DEVELOPMENTS of
large Importance having TO do with number
OF conspicuous properties American Smelling
Is to advantage by opportunities 10 turn into
cash vast assets that come to tt through par
ticipation with Mr.. Morgan in the stupendous
Alaskan copper enterprises with regard to
which George W. Perkins has been making per
sonal surveys And one early result is likely TO
be an increased Smelling dividend
Another property whose stock will benefit soon
following MI Perkinss return is international
Harvester. Dividends are now TO start upon the
common shares. Insiders do not hesitate 10
prophesy par for this common stock-par be-
fore the end of the year.
come large stockholders in the Vulcan Detin-
ming Company There will be seQuels
Announcement that the controllers of the Cen
trail Leather Company making liberal over
lures 20 the holders OF outstanding United
States Leather preferred shares IS hardly sur
prising. 1t is development distinctly encou-
aging. Upon both sides in the controversy be-
tween these Central Leather and United States
Leather interests are ranged men of character
Eastern men of standing and integrity The
name Of Colgate has for generations represented
fair and honorable dealing Never anywhere
have they held or sought any merely selfish ad-
vantage. Neither have they ever been surren-
derers OF rights to which they felt themselves
entitled In the opposing ranks names rep
resentative of precisely this same manner OF
straightforNardneSs-f the Hoyts and the
Horizons have unsullied records IN every busi-
ness quarter where their enterprise has been
assertive. Between such interests controversy
eventually reduces itself to finding out what IS
fair. all around. And so, there will be agree
ableness altogether natural II before long there