New-York tribune., 1909-10-31
The Financial World


reveals growth of business-prespea,
--fsirly without parallel. True. there -
been criticism" from professional bss-
som that The report was not as good >.
was expected-sGch criticism being A..
merely silly. As a matter of fact az
quarterly report more than fuIais -.
reasonable anticipation q tha frienS, :.
the Corporation. It shows constantI,, ..
ereasins business-constantly facr4s.t.'
/ revenues. As 20 the business booL,Aa
the future. 1t is common knowIeGee -.
since the first of October Orders -
piled up rapidly. and IL IS a fair iDss-a-
that by tha end OF the year unaeas
ders on hand win run from s.06s.ka
100000 tons. There is nothing in s5xs,
TO impede expansion.
Holders Of the stock must be anolv
satisfied with the increase IN dividend
rate which restores Steel common to rns
four per cent. basis. The four psr cent
declaration is more than conservative, for
the financial statement submitted BY tr-
/ Directors shows beyond doubt that a
least 10 10 i per cent. IS now being
earned upon the stock. II is more than
probable that the dividend rate from nov
on viii steadily increase. As often stat
ed in this review. steel common is m.
ultimate heir OF every dollar which the
Corporation may earn over and above It's
requirements for fixed charges ana BET
terments. The completion of the Garv
plant. paid for entirely out q earnings
means that appropriations Of extra0--
dinary character will cease and that ne.
earnings will be available FOR COmmoa
stock dividends
steel common is the nsrNet Leader
the market barometer as il moves so
the market moves And the reason fo-
this re-eminence is too obvious % need
explanation.
Coincident with, and eonfrna torv az
steel prosperity are the magnificent r.
rorts now coming in OF railroad earnings
Such representative systems as C-nio.
and Southern Pacifc. Nav York Centra
and Pennsylvania and Erie all testify 4
their gross and net earnings to q re
cupera tion OF business prosperity actuaIlg
startling. This great country siTaply re-
fuses TO be tied 70 the tail Of pessinnisan.
Nor are the great systems narasd alone
in rounding Up the record Of optimism
The smaller systems keep time in the
march. And there are smaller systems
hich are about 70 become greater. Not
ably the group OF railroads now under
control OF Edwin Hawley. Mr.. Haw!ey
has ACQUIRED possession OF road 6ttST
road. all of which can be united in cIs
harmonious trunk line asgTe egatien Sec
end TO none-and of these roads there is
not mediocre one in the IsI- The ksv
70 his projected system is Chesapeake
and Ohio. which geogra phieally unitss
with the other Hawley roads and Which
has large Importance on It's Own indie
pendent basis. That there IS intelligent.
outside public appreciation Of thsSa tacts
Is evidenced by tae market course O.
Chesapeake ard Ohio, y hich is destined
10 much higher levels than those ys-
reached
And backing up this industrial and
railroad situation is the wonderful
strength of the agricultural position
From any point 81 view. be it technical
or natural. there is nothing in sight
which can interfere with American prcg-
rtss-there IS everything IN sight 70
confirm the conclusion that that progress
will from now on gather fresh impetus
and that this must find stock market re-
faction is simply inevitable.
The careful observer Of facts Ia Wall
Street comparing conditions, aRalyzing
statistics and measuring relative values
finds nothing az present Of livelier inte--
est than the market records being mads
by representative industrial preferred
stocks. From many viewpoints this IS
emphasized. And--for the alert invesuo-
there arc indications, 50 disclosed.
which amount even 70 compelling in
fiuence.
There is complste change from the
Cropping EXHIBITS which even TIE very
best Of such Industrial preferred invest
nents were presenting barely 4 singh
year ago New high market records ers
scored--it is actually a general rule that
prevails,
During The discomfortns times % 1865.
and even over into the beginning Of
1909, there we're severe tests pslI upon
this exceptional class Of securities Ths
very stanchest were sacrificed Even
one as old and sturdy as Sugar preferred
G9 straight wears paying its PEI cent?
vas staggers0-frOm TO dropping down
almost 10 par W9olen preferred tregl-
lar : per cent. payer from It's very cIisil1
dipped below So. so did Leathsr pre-
f5rTSd, its Fer cent. record also IN
broken. And Rubber first preferred .
though paying 5, lid tLs Sape Lead
Preferred tl1 years II has paid itS 9 per
CentN was under s. Pressed Steel qre
ferred Il per cent. for IL consecutive
years.. broke 20. And even United States
Steel Drefsrrlsi--a oSOlute premier alnohS
l,IIra conservative Industrial investments
never having one possible chance Gt
f.bafius- its primal per eent-"as Seit
>sy.-,, wiling down 70 S1t@. Most o. thess
<, Col-s ar. lD an average ct CFe~ -
r,fnts-on public ABSORPTION
II is hard now 70 realize what th9t
,i,,s actTItIlv was i'm searching, benumo-
i,,.. dFStrnvire fOrcefIluCSS. The market
w. dsr1ora llzed. 80 was all the couu-
trv'S -b,!sinr~S-thE market merely tGa
echo OF business.
Happily IL ls not reeded 70 dwell upon
that shastiiaeS eSs-,here = with US to-day
q rt-estabii shed prosperity, 50 gepulnS,
SO vigorous. so expanding. that Il Is al
most Il temptation 10 some 70 rsgar';
that which was black and blasting as
tavinE been really q blesSinS-perrs1p'sss ~
ting such agreeab's comparisons ~ ''-'
developing splendid era
An influence that may be fairy re-
sarded among the most po.-''''T'
- has 70 do with the s'sSsrtive "a
-, -. os tba public into the naarSet' To-
tHttN u N'-- I've ie-v,N ~ szSiV13Srs,