New-York tribune., 1909-10-10
The FinGnciG! World.

After ALL perhaps. the breadth ara -
strength and the uprising OF the stock rnark.,t.
only dream-nOW over"
THIS fairly spitomizss what the pros.,vlo-,,
talent OF the Stock Exchange have thls w..~
urged upon everybody-themselves ,n.,Ssa@
Upon their own account they have sesss -.
ously. AS they hoped and urged. tbsv ,rsS-s
There has been a wholesale selling OF stoc1-
short. Few escaped. but the onslauzhs -
chiefly upon the issues which have ag11rsa -.
IN the markets recent strengthening and br,sS
ening-and. naturally, above all others T-ns,as
States Steel
some substantial Tecessions wsr. for,as
Hardly a stock on the whole list escaueA. w.
changes for the week are represented sIn,os,
uniformly by declines. Against the assauIs,
made vociferously there has been shown or,,,
the Quietest OF opposition. They who have
largest interests On the investment side OF sha
market have seemed az no time anztoua 20 ss
fer any vigorous fighting. What, rather. ha,
appeared 20 be their well considered plan -
campaign has had representation IN buying or
ders almost surreptitiously introduced into thu
Misunderstanding stocks day after day little Of
ferings and big offerings alike. at the figures
which the sellers chose 20 make. Attempts at
rallies there have been none Neither anywher,
at any time has there been shown any indics
tion Of aDybOdy's purpose 70 estop declines.
much less to produce advances.
What, in substance the record OF the weak
may fairly be taken to be is that the strongest
interests known to the American financial world
and precisely these interests are the present
chief owners OF American securities. the belsV-
ers in them, standing sponsors for their market
values-have not been caught mapping by tho
tuppenny trading tribesnen Of Wall Street: bur
that with full appreciation OF all thar pessi-
mistic vehemence might attenpt) they have IN
a fashion OF actual eoldness taken the utmost
advantage (for bargain settingl which pell msll
raiders have so riotously forced upon them.
OF the few stocks that have advanced IN ths
face Of the weeks fsrocious onslaughts. Wells
Fargo Express has frst place. rising more than
% points. not. strangely. upon the disclosure
that it's earnings for a year Approximate 50 per
cent. New York Central Is Up nearly per
cent. Developments recently forecast seem 70
be close at hand. Vulcan Dettnning common
rises just per cent
By common consent United States Steel COM
mon is accepted as market leader and markss
barometer. II Is selling at present something
over seven points lower than its extreme high
record 1t has been the object OF concentrated
attack. 1t has been criticised. sneered az. de-
rided, held up 70 the imagination as the colossal
fake" Of the age. To all such aspersion ths
sufficient reply is in the simple recorded facts.
The steel business progresses with giant strides.
ProdU- o.. is hard put to keep up with con-
sunptive demand. Outside independent com
panies, swamped with orders. are compelled %
decline business. which naturally reverts To
the Steel CorporatiOn-it alOne having the
plants capable Of handling the food Of orders
now crowding. In its actual physical operation
the Steel Corporation comes as near perfection
as human ingenuity can devise. AS a working
business proposition the Corporation extin-
guishes criticism
But from the market point OF view the stock
Units 10 fluctuations, which follow the mo-
rnentary opinion of professional Wall Street.
When call money got into the neighborhood OF
> per cent. the cry was raised why buy Steel
which pays but 8 per cent when money can
be loaned at rer cent? The answer Is OBJ
vious
No one has bought is buying Steel com
mon because it now pays 3 per cent dividandS
II is bought by investors all over the world
notably. at present, in France and England
because there is intelligent realization Of the
tremendous future near at hand Men Of
means seeking investment (which at oncs
Yields a fair income and which. additionally
has the assured promise OF immense capital
increasel naturally turn To steel common as
the most attractive Investment offered. TAX
about selling Steel because money rates ad-
vance is not new The same arguments were
used a year ago when the stock was less than
half its present figure. And those who sold then
had cause 70 mourn. Those who sell now VIII
find equal occasion to grieve- IJ may weu oe
that there has been considerable speculative
liquidation. tempted by the great profits aecFu-
ing from the recent rise, but such TRANSACTIONS
are simply incidental Investment goes TSht
on in vast volurne-the great decrease in New
York bank deposits shown this week beng
largely due TO the withdrawal Of funds FOR u
vestment in this commanding stock steel
common to-day Overshadows every otheI Il"
Vestment in the world -,
Relation between the local money marSs'
and Steel stock can be at least but StSn+
because. as stated, this stock could never hSss
been bought on a Weld basis since II reacnea
present leVels-but is bought because OF u'
absolute certainty Of present great and tuSa' l-s
greater prosperity. All students OF the Co-
pOration's affairs realize that the day Ia
passed when enormous appropriations OUT
current earnings for betterments and es~
plants are demanded From now on q 90
portion of the Steel Corporations lIaIns-
earnings must be devoted 10 common -
dividends-there is no other outlet for tns@
What this means is not easily Computao1
Steel common within the next few wears esA
easily become 10 per cent. dividend pays4
is actually now more Than 10 per cent NV
dend Garner
The dividends the thing Chesapeake anu
Ohio certifes this. making this week A0N
high market record in face Of all the oealisN
intoxcation. Chesapeake and Ohio IS easnnS
$ per cent. Par for the stock is sure 70 9
reached before the end of this year-uai7ss
something cataclysmic intervenes. The s''oN
would be that high now If il were in the cohHD
of ordinary spectators. The "sIow and SUI
dogma of Edwin Hawley opposes anticipatcfS
buoyancy. Perhaps ne is oId-tashioned n ns
views and his methOdS-but HaWley VsgSs
seem to be values that last. As recenty S-s 80