New-York tribune., 1909-04-04
The Financial World

Increased railway earnings begin again 70
| be fashionable Some current records are not
| merely encouraging. they are inspiritng-ia
many ways they have notable aspects and sig
| nificance What. moreover. shows in every quar-
ter is that the policy Of rigid economy is nors
| and more enforced-giving to net earnings even
| larger percentage of increase than shows in
| gross This healthfuness finds natural reflection
| in more confident public feeling. attended by
agreeable stock market indications.
| Except for weekend reaction. amply dua
! the Stock Exchange market has been stro7-
! throughout the week, railway and Industrial
securities both participating in advances II
/ may hardly he claimed that so far there is ar-.
| disclosure Of aggressive new market activity
| upon the part Of the outside public; the profes-
sional trading contingent still have things NUN
| to themselves. Commission brokers however
are undoubtedly buster than for some time past;
and what is Of significance is that such ints--
ests report even if there be not ret any puolic
buying a large scale. that there is undeniah,y
quickened outside impulse shown By a
swelling volume Of inquiries and requests fcr
market advice: and the commission broker ia
much hesrtened by this symptom.
OF further consequence upon the right side "a
the fact that the broadened professional activ-
tiles are reflective of plans md operations upon
the part Of interests more irnportan; than thoss
Of similar character recently able in 2 EttIer
market to be controlling. During tha present
month we will have powerful operators return
ing from vacations to businesS-sorne advance
signs of their coming already appearing in GER
tain conspicuous current market phases-for IN
these days Of quick long distance counnuni-s-
ton transactions however large or intricate r1s,
be arranged and even completely executed read
Ly. Some current quotation gains attest this
fact graphically.
Mr. Harrir1an's return from his inspection
tour finds him declaring that throughout the
: West there is 10 be found no evidence Of auzht
except prosperity attended by ambitious devsl-
oprnent plans. One notable statement issued
with Hartman emphasis discusses the status OF
Chicago and Alton. unequivocably describing Il
the best railroad In Illinois, certified by
extraordinary earnings and expanding dividends
Though not specifically saying So Mr. Hartman
seems personally advised Of Mr.. Hawleys plan
TO now put the Alton dividend higher Alton =
upon per cent dividend basis will be
servative example-paying per cent, earning
close TO IL Toledo st Louis and Western. own
ing three-quarters of the Alton common stock
is Of course the real benefcfary-for s per cent
Alton common dividends would put into the
Toledo st. Louis and Western treasury more
than per cent upon It's common stock selling
now but little above $50 per share.
What Edwin HawIey's mana cement has ac-
compIshed in Alton and Toledo. St Louis and
Western and the other properties OF the Hawley
group may. howeve-. be even surpassed by the
records he is planning to make with Chesapeake
and Ohio It will be only little while before
Wall Street discovers Chesapeake and Ohio
looming into a perfected system Of prominence
and Importance far beyond what even the most
confident believers in Mr.. Hawley have antici-
pated There is 10 be some new construction
There is to be comprehensive acquisition The
increase Of dividend already assured-warrsnted
by present conditlons-cannot tail 20 De fol
lowed speedily by still further increase-a fact
whose appreciation in high investment quarters
is sItested by recent absorption of the stock for
group Of foreign bankers
Representatives Of the Deutsche Bank Of Be-
lin are buyers OF Baltimore and Ohio-assurance
having been given OF the maintenance Of per
cent. dividends. making the security an excep-
tional bargain in the German conservative view
Apropos Of these Baltimore and Ohio pur-
chases for European investors an effective ele-
rnent IN the security market situation appears
in the relaxation OF tension in the money mar
kets abroad-brought into sharp prominence by
this weeks action Of the Bank OF England IN
reducing its discount rate TO "a per cent This
is unimpeachable testimony TO the clearing I'D
of the Balkan situation. for no such action would
otherwise have been taken. Its effect upon the
American security market must be far-reaching-
With money being boarded abroad for possible
war purposes and with the natural stagnation
OF foreign business incident to such conditions
European holders OF our securities naturally ap-
peared here as sellers. because here they found
the readiest and best market in the world With
this pressure removed such sales will no longer
appear: on the contrary. there Is already abun-
ant confidence that Europe is beginning buy
ing campaign OF large dimensions in American
stocks which may be expected 70 broaden mate,
rally from now on-as Significantly indicated
bv the substantial absorption of Baltimore and
Ohio shares this week by the bankers OF Berlin
Reinforcing the European and American fnan-
cial situation, and with direct influence espe-
ciaIly upon European financial sentiment. is the
continued production OF gold on constantly in
creasing scale IT is compelling force all the
time raising the standard Of value. which must
md nnal reflection in every security market Of
The world-European attraction toward America
undoubtedly influenced by such examples o.
phenomenal production as appearing in ne"
1evecpnaents like those OF the GOldheld Con-
soIidated whose marvellous records have led
rroup of important Eastern bankers within the
past fortnight TO make millionaire investments
theFe-these bankers so Rauch Impressed oS TIER
personal investigations that they are 70 bscouis
Intimately and openly Identified with the man
asement of this wonder property
c-oincident with Brooklyn Rapid Transit's as
serttve progress toward higher value levels. con-
sequence belongs 10 the upward movement which
,as become pronounced in Interborough-AeIro--
,olitan issues There is reason This rnarAet
oovern ent reflects developments OF far-rsachinS
In essential regards there is coming
Ia mass what assures q revolution IN INTERIOR
ough- Metropolitan afrairs-the establishment er