New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-01
The Financial World.


I per cent per annunl. but It's very conserva,,..'
the belief OF those prs-sr,,,.~4
nnanciers who control the Steal Corporate, -.
depression has vanished. that prosperity IA.
turned. that prosperity is broadsninglv % 49,.
tinue Ie is a matter OF common knovlsaz. -.
this per cent. dividend does not represent 49,.
half OF less Of ths actual profits acerlinr "a -.
common stock after the discharge OF an sv.s
obligations. preferred dividends and ultra rs
eral appropriations for betternents ana ns-,.a
nent new improvements AS often pointst 80.
in this review the earnings OF the corpor,,,~,
for the past Ave years have been sufncienr -
pay interest preferred dividends irnprov. -.
Pittsburgh and Duluth plants 20 the mir, !,
Transformation and 70 build the Gary plant n.
most perfect in the world. Just earnings VAS.
suficed for all this without the creation A.
new Indebtedness OF any nature whatsoav.v
And after all these payments SURPRISES hav.
still mounted. II is evident that al thsss vas,
developments must become actual feeders "a ,bs
common stoek-it alone is the anal heir OF sv.rv
dollar OF revenue over and above that nssdss a.
fxed charges and preferred dividsnds
These views were outlined IN this rsvisvv a.
long ago as when Steel common was selling b.
low 20-or az about one-fourth OF is presA,.
quotation. IL was then stated without eouivoca-
ton that the stock was worth az least so--i.vs
on sheer merit as an earning business enter.
prise Wall Street laughed at such analvys,
and Wall Street fatuously kept sailing srssl
short during an advance OF more than 50 point,
The Wall Street professional nind could nor
grasp the idea that the Steel Corporation. IS
great business undertaking-the creates, thar
the world has ever seen-nanagsd By the most
powerful combination OF financial genius ever
embraced in a single association. Wall Street
preferred 20 hug the delusiOn that the Steal Cor
poratton was simply speculative trap set n
catch the publie's money. But the public was
not fooled by such finsy hallucination IRE
public kept buying Steel shares until to-day
more than 100000 names appear upon the con-
panys books as outright owners. The public has
wen-Wan street has suffered drastic punish
nent.
There is more significance 20 this sts.l adj
vance than the mere record OF market iraurovs.
nent. The steel business is Justly REGARDED "a
the touchstone OF the country's business. From
the enormous trarlc in rails and railroad scuiu.
neut down 20 the thousand and one little necss-
saries used IN daily life steel products enter
more than any other manufactured articles into
the area OF national consumption First 20 prOAt
in prOsp porous times first 10 suffer in hard trss
the steel business is an infaliole register of the
eountry's business condition. And how stands
" now9 President Corey states that The vsar
1910 will witness the greatest production of srssI
MANI that Will ever have been known
Certainly Mr.. Corey does not 50 speak without
y
Steel success is vtndication OF the mastery
strenuosity OF ]. P. Morgan and OF Gary, cerss
Frick, Perkins and all those able associates VITO
have contributed 10 The physical and financial
triumph or the company. There are still uaafrsH
whispers Of the canttng criticism OF the past
but they are now almost tnaUdible whispers
stihed by facts.
AS 10 the future OF Steel common stock. there
can be but one outcome so long as national pros
perity endures-it must rise to 2 level canrsn-
surate with It's earning power, sure some day to
he reflected IN its dividend distribution. The
lock stands for actual accrued value far higher
than it's present quotations. and that recognition
Of this both at home and abroad viii carry il tc
yet higher levels IS as certain as any futurs
event can be
The United States Steel Corporation is Amer
tca's browning contribution 70 modern industrial
evolution
In its estimate OF the United States Stssl Cor
roration's status this review has placed reliance
upon analyses made for IL by Mr.. John G. VII
son, many years editor Of the Wall Street Daily
News. whose intimacy with trade conditions and
trade expansion entities his Judgment 70 conf
dence-and as in the past his forecasts have
found veridcation so, we Anticipate there VII
be verihcation IN the future for The continuing
optimism he now expresses
In seeking explanation OF this wonderful steel
prosperity the conclusion IS forced that II
springs from the primal facr OF year upon year
Of great crops at high prices. which have ere
ated an immense agricultural wealth vivity'ns
the courtry's activities. And az this very tina
again comes assurance Of another year OF aoHa-
dant harvests. the value o. watch viii tar az
coed any previous annual total The oro1s q
1909 are virtually assured Such dansge IS
NAV result from now on can be but rrlvlsl-ta-
consequential in the mai summing Up. las :
guarantee OF industrial and trade revival "Aie-
viii carry the prosperity nls1"atsr Il4.A y 49,
T.,rr &c -
such conditions gOver1-nOr can unars DC -
standing still; the movement OF business a.
the action Of the security marker must coh-ha7
70 be upward
IN fact. in so far as our own country is con
cerred, there is nothing perceptIo-e % Nals@-'
the least disrrust-everythl1s points y -, ---v
market IS not an isolated feature out IS pI
and parcel land largely the register A" "
country's daily life
As the security market his week oSV7'os'.
there has been disclosure o. such nervousness
on the part Of bear specuIa-o-s short OF S'OSA,
as to make IL seem not strange that sussIa''--
purchases have been made 20 cover oA-s-'-.-s
short contracts Thus il is probable tasI al =
close OF the week we have smaller sH0'- -, =
terest in the marker than at any time STAGE -
Years The easy way in which Union F@''--
has held its quotation around geo. the ouosa-..
in New York Central. the strength OF half 80,
OF conspicuous issues, the maintained -eaH9-s-
OF United States StesI-high records o'N-
daiIy-these are elements which mlcA s>SI'' -.
professional speculative spirit Ana WIS
months past all Wall Street. has been an.s:as,so1
the absence OF the public. and wo-4e eO-i s-isg
houses have by their inactivity been ees.l.s,~,s
the puolic's absence. there now o. suuIs- ssrrl-
70 be developing an alJogatAs. dltlT.s-.- S,Tfnz
tion Judged by what has taken yA.SS. ~ossl-
the past week. there Is not merely thS 80
bility OF renewed public participation ~ -
Lcat hlt sllch N naron seems ever Il--,.s