New-York tribune., 1909-06-13
The Financial World.

Security market outlook brishtsns. Bear as
sault upon assault is repelled with the calm con-
fdence born Of conviction.
There is no mystery in the strength displayed
no need to seek recondite reasons Conditions
which make and govern market movement are
simply impregnable. No longer is there reason
able doubt that the country's total crop yield
for the year will be sstisfactory-and Of high
importance. we are producing every product OF
the earth for which there Is immediate demand
at prices more than profitable The three pre-
mier crops-wheat. cotton and corn-are fairly
certain to come TO advantageous harvest As
often stated in this column. such result tnevfta-
bly, means vast accretion of wealth to already
rich agricultural community. What this further
means to general trade and commerce by reason
of enhanced buying power Is not readily COM
putable but that il is enormous is a mild asser-
ton Springing directly from this agricultural
situation is sturdy. healthful expansion IN every
branch Of industry. For example United States
steel Corporation is now operating to eighty per
cent. Of its full productive capacity, with every
Indication that the remaining twenty per cent
will find ample employment in the near future
1t is not astonishing that the stocks of the Cor
poration should be in demand at steadily rising
quotations. The preferred stock with It's seven
per cent cumulative dividend. IS practically az
good an investment a gilt-edged bond. What
the common stock can do n1arketwtse is simply
a matter of time. OF course. the Paris listing
is direct immediate help not to be lightly
To take another great industry-copper-all
trade situation Eaers Of repute Predict = 69t 5f
an early date the price of copper metal will
reach Is cents. Worldwide consumption OF
copper has relieved congestion. and from now
on this important industry will be helpful in
stead of deterrent And so on throughout all
the list Of the great industries Everywhers
q NEUTRALITY-SUSPICIOUS. regeneration.
Against all these tremendous facts is arravsd
compact aggressive bear party. Day after
day 1t delivers stout attack-day after day IL
fretS and fumes and fights. To listen to the
oracles OF pessfmism thers Is no such thing az
prosperity, possibility of the prohtable pur-
suit Of business. absolutely no hope for any
American enterprise The country Is rolling
headlong down a steep slope OF despair. at the
bottom of which turks annihration-aH the
fruits of past efforts foredoomed to turn to dead
ashes lips Nor particular horrihc
details omitted J. P Morgans Steel shares
listed in Paris are 10 be swept into some obscure
corner. to be shifted at cOntemptuoUsly By ths
lords OF high finance Ny. Harrimans CGi0n
Pacific Company is to scOrn conversion of IT'S
preferred stock Of Southern Pacific into common
stock. Mr.. Hill is to renew warfare upon DIr.
Hartman. Mr. Hayvley IS to he relegated %
obscurity. Indeed. every prominent American
nancier fs to suffer financial eclipse or go to Jail
Crops are to w!ther-ths wheels Of industry
are 10 cease TeyoIving-tne marts OF commercs
are 10 be given uF 10 grass growing Is there
anything fanciful in this? Not from the bear
point OF view So. imbued with these beliefs
panoplied IN the plaster Of pessimisrn. wall
Streets bearS Come tc the front morning after
morning 10 hErI defiance at the inevitable
Their energy Is Observation-Disclosures courage IS
beyond praise-their persistencs reaches ths
heroic.
But what happens? They 90 not make q.
dent upon the aTrnor Of prosperity. They simply
succeed in committing themselves to an ire
trievab1e position from which they will be lucky
to escape with some remnant Of the needfu!.
They sta gger hither and thither in aiTlless con-
fusion-their speculative rainent frayed TO a
frazzle-
To what end must such conditions Iead2 OF
what avail can be the most desperate spscula
tive valor against the calm inprsgnabiiity OF
facts There is nothing that can change Jne
character OF tO-day's security market except the
always possible occurrence Of unheralded calam-
ity But neither investors nor spectators enter
upon adventures upon the supposition Of unfere-
seeable disaster Human affairs are not con-
Quoted in that way The natural tendency is %
be hopeful, and when. at present. hope IS
justified, it seems to be folly to fight facts with
phantonns- Yet that is exactly the present
occupation Of the bear party-they oppose moth
ing 20 the real save the baSeleSS fabric cr
statements may appear extravagant- TEey are
not on the floor OF the Exchange in its cor
ridOTs. in the streets surrounding. nothing IS
heard but professional expression OF vocal
market discussion summed up In doIerUl dIa-
tribe. II is a condition peculiar 10 Wall Street,
difficult to be understood outside Of that local
ty: but it exists and is without doubt account
able for the haltng nature OF current security
market tTansa CttOns-fOr, in the comparative
absence of public speculative interest inlu1e-
diate fluctuations TO a large extent under
the control OF the professional trading element
That they accomplish no more than they do
should give them pause
week ago in this review detailed attention
was given to the Ontario and Western shares.
AT that time the stock was selling around 50.
1t is now some five points higher. As was then
and is now again stated developments pend
concerning the future disposition of Ontario and
Western which can well make it worth twenty
five thirty points more than it now sells foE.
AS before pointed out. it would be of great value
to Canadian Pacific and there is more than coed
reason to suppose that Canadian Pacific recos-
nizes this and Is taking steps TO secure control.
Should this not prove feasible there are other
interests to whom the acquisition OF Ontario
and Western would be a very valuable asset. Is
is not to be supposed. under such circumstances.
that the property is going TO be left Isolated ana
uncared for. The possibilities of its acquisition
or control are too tempting to be withstood
Even as a plain dividend proposition at the
merely nominal two per cent. which II now dIs-
burses. il yields close TO four per cent. at cur
rent prices. that purcha sss made now impose
no burden the buyer. while a1Ording brilliant
chances Of enhancement in capital value
As to Ontario and Western. some considera-
tion must be given TO the fact that orders 20
buy the stock come from quarters altogether
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