New-York tribune., 1909-02-28
The Financial World.


market authority Owners OF securities were
scared interests carrying stocks upon margin
ran suddenly away. In so far as investment or
optimistic speculative elements were anywhere
concerned there was rout absolutely It is a
sorry chronicle to tell of the beginning Of tho
weeks market Courage was nowhere. intrinsic
value commanded not a single consideration; it
was the fashion to be dernoraIized Consequent
sacrifices were Just simply sxtinguishins
Wall Streets atmosphere was overchargsd
with the fury Of fable and fooiishness- Only
testing gentlemen discussed the trtvialities OF
common sense, net earnings and vauS, Con
gress and all the legislatures. the United States
Supreme Court ard Mr.. james r. Keene were
all OF a sudden marshaled as CHASTITY spectres
Yet at least three Of them we're not ghastl$
Naturally enough, Of course. there came be-
fore the end Of the week reassertion Of the or
dinery mental faculties; and the final figures
OF yesterday were not disturbing - the close
OF the weeks market it is much vocifeTated that
judgment decree is 20 come from Washington
on Monday expunginz the coal railroads; and on
this theory stocks have been sold short BY
wholesale. In Reading it Is probable that there
now exists short interest bigger than known
TO any other stock in years past Nobody in
Wall Street Is petty enough 20 be uniformed
to what deadly thing the United States Su-
preHle Court is about to DO. Mildly stared, the
popular Supreme Court decision forecast makes
of the Reading company may really have to
consent 10 accept 100 per cent. scrip dtvi-
derd-fer il the Reading Railroad may not
transport Reading coal for It's own account. then
Reading stockholders may have to permit them
selves to see their Reading Railroad take out
OF Its treasury their Reading coal property
relentlessy hinging 1t into their own pockets
'Tis a sad prospect-but, alas, of course alas,
this laggard United States Supreme Court hasn't
acted yet And sanity, meantime compTenend5
just this: whatever happens and whenever it
may happen, there is going to be neither de-
struetion of property nor destruction OF earn
spell nothing that has to do with common sense.
OF signifying developments Importance be-
longs to the broadening out efsthe market for
securities whose quality finds eertifcatiou in
dividend betterment-a notable illustration pre-
ssnted by Brooklyn Rapid Transit shares
Throughout the recent furry Brooklyn stock
won conspicuousness by its staunehness. yield
Ing relatively little. and since general market
Improvement. Is reasssrted the Brooklyn prop
erty has come forthwith almost into a place OF
leadership In such an exhibit appears nothing
surprising, much that Is wholesonnely encourag-
ing-not merely for this stock itself but as
it indexes the public investment disposition, for
this Brooklyn strength is wholly apart from
rumor and tip and mere professional artihee
Back Of II Is the merit OF actual value.
Long years have been spent in the upbuildins
Of the Brooklyn Rapid Transit system It's
projectors were enthusiasts They contem-
plated big things And most Of what they aimed
at has been accomplished. But progress had
to be made far slower than originally was antiC-
ipated Obstacle piled on obstacle. Competitive
undertakings were not lightly 70 be put aside.
financial eYnbar-a ssrnent crept in local politics
rad some disturbing parts to play-and public
sentiment came at times into determined con-
nict with the connpany's executives plans StiH.
| what became year after year palmer and palmer.
and effective was that the property's manage
| nent was consistent and persistent in pushing
forward progressive plans And some time ago
/ II began TO break in upon Wall Street that there
/ had actually come into existence a new Brook
/ lyn Rapid Transit proposition There was no
! longer an epidemic Of complaint against the
manner Of service perforned-the public was
! shown that the pubIics goodwin was desired.
( actually deserved. And. with this revelation.
! there produced natural revolution II me
financial worlds sentiment-tnsfsht disclosing
that instead Of being a cripple Brooklyn Rapid
/ Transit finally developing into lasting
/ strength.
/ Years ago stock market manipulation fore
| cast dividends and the stock sold far above par
/ on hopes doomed to abandonment And. years
| after. renewed dividend prospects stirred en-
/ thusiasm afresh; but there had become estab-
Iished a mana cement too conservative 70 adopt
/ a policy which might not yet be ready for per
| manenee-though there had come to De per
/ sistence in the belief that dividend establish
! nnent was insvitable-and this very month has
/ brought the veridcation. Brooklyn Rapid Tran
/ sit is finally in the dividend paying list Al me
/ present price Of the stock its per cent rate
/ yields the investor a fun per cent
Amazing figures involved in the progress
siveness which has distinguished the making over
OF the Brooklyn Rapid Transit systenl-littlnz u
/ from experiment and speculation to Investment
/ postion Fifteen millions of dollars nave aCtu-
allv been taken out Of current earnings ana puc
I back into the physical Improvement OF the prop
erty; and there is inspiring comparison too n
/ the further exceptional fact that when N poor
| money markets the cor1pany's bonds ve~e mar
keted at discounts every one of those discounts
was charged up against the current earnings ac-
count. BY processes like this the way toward
! dividends seemed at times exceedingly SLOW.
/ but results achieved now show this Vel WeTtn
all the delays and every passing Sacrtnce-fcr 4
/ dividend policy whose foundations have oesn 90
/ built can be counted upon TO be lasting Brook-
/ ivn Rapid Transit dividends, under normal con-
/ ditions. can be expected 70 change only 70 sA-
pand.
1 ity market where dividends 50 sterlinsly devef-
4 oped for metropolitan property ind reflection
in a quotation lower than power. BROOKLYN
Rapid Transit, paving per cent. with It's traI.
hc swelling day BY day Under the very eve OF
/ Wall Street. can hardly be long appraised as
worth merely SO $50 per share. While ciess
beside it on the stock Exchange tape are yiftu-
ally equal market values registered Iot StocNS
/ ike Arlalsanated Copper. paying bur per cent,
/ from mining enterprises scattered over the Tar
/ west-ArnaIgar1ated's 2 per cent certainly not
| threatening any early improvement Brooklyn
paving per cent. earning twice Der cent
| Throughout the general market there is
| much increased short interest some stocks.
} particularly Reading and United states steel
| have been sold on tremendous scale by pro-
| fessional speculatcrs who have persuaded tnen-
| selves that something very bad may appear IN
Steel the adverse interest is based upon theory
that the conpanys controllers are decetful, that
| any announced concessions in prices for product
are merely preliminary much larger cuts. even
m a demoraIfzation point. Practical iron and
steel men give consideration 70 no such view
1t develops at the end CT the week indeed tnat