New-York tribune., 1909-01-10
The Financial World.


stock was severely unsettling 70 speculative
confidence But the chief sufferers those
Wall Street prophets who had jauntily assumed
that the court was going TO uphold the dollar
rate-teiepathy out Of joint OF tbs
forced liquidation Of Consolidated Gas specua-
tive accounts compelled Liquidation elsewhere,
and the bear party. eyer watchful FOR vantage
point attacked and re-attacked the whole list
with savage raidng courage. Thin margins
vanished. Tlmid spectators HunS away their
Yet though at times decentralization seemed
imminent there was actually strong quiet sup
port. and in number or securities real new
strength. which by no means jUstihes the much
preached platitudes OF pessimism- As a matter
OF fact the security market we'll wtthstands an
unexpected bIow-nor IS there in sight any i'm
pafrnent of the strength OF basic, governing
conditions Facts are with those who pin their
faith TO progress who believe IN the productive
power OF the American people
Were prices inflated. were speculation unduIy
rampant. the Consolidated Gas incident would
have punctured bubble-generaI demoraliza-
ton would have. OF necessity. followed But
there is nothing Of the kind in evidence
Much miscellaneous misinforTnatiOn has deI-
uged the Street throughout the week. Some Of
the abundant faIsehood has been intended %
help along bull manipulation. more Of Il has
aimed TO produce Generalization. AS against
the tale that Lake Shore Is to guarantee per-
manent dividends upon Big -Four, that Edwin
Hawley has bought control OF Missouri. Kansas
and Texas that Mr.. Hartman and Mr. Gould
have made Southwestern partnership, that the
New Haven Railroad Is TO increase its dividends
tan fables and fooIishness) we have been
treated TO bear chronicles OF Stiffness making
list 200 long for recitation
Looming above other bear sure things Is ths
representation that on Monday the United
States Supreme Court viii hand down decision
destructive to the coal producing and coal carry
ing corporations Gentlemen who are surest q
this discouraging information are the same gen
tleInen who week ago were certalneSt tlat Jh9
Supreme Court going 70 do Just what the
New York gas company wanted What they
knew then is quite upon a parity with what
they know now.
In another matter-not similarly treasonable.
however-there may be more basis for bear ex-
pectations. The Erie Railroad Company wants
to issue a large volume Of new bonds; and spec
uIators adverse to current values are urging
that the Erie's application will be refused Eris
has urgent need for such resources as this new
bond issue would permit Failing 70 command
the privilege Of raising some millions of
dollars, there can Of course be disquietude for
the friends of the property, for the company IS
applying for nothing which 1t does not imIne-
dfately and seriously require-if II is TO continus
its expansion plans-ff II Is, indeed. 10 escape
an immediate grievous financial jolt II was
pointed out in this review some months ago that
unrestrained enthusiasm over Erle's status might
become expensive; but that mild suggestion has
ever since been hOOted as foolish In Ftew of
the fact that the price OF even Erie common
meantime doubled Mr. Hartman was 70 re-
deem every Erie distress; and. since, pro-
fessional Wall Street has been dreaming ot
common stock dividends. based upon philan-
thropic traffic contributions by Mr. Hartmann .
Western rarOad-up to this date. however, not
looming very large upon the Erie horizon
played. there would seem TO be readiness for an
Outburst of criticism If the New York Public
Service Commission fail unreservedly 70 en-
dorse the pending apphcatOn Tor new oohos-
The public view-outside OF Wall Streets In
terested consideration-is not likely to be SINH
larly condemnatory-
derful property. Il belongs in the class of great
trunk lines. Yet through twOscOTe of years IL
has persstently baked. every time it's friends
have tried to drive IL forward; and tt,ere
but variation in records over and over made
when something like year ago temporary loans
were arranged wherewtth TO buy bond coupons
to avoid mortgage interest default What tbs
Public Service Commission is Just asked
to do is to license the funding into permanent
charge OF those coupons which tbut for Mr..
HarrimanS interpositiOn) were defaulted- And
the entire impending public service verdict
seems now merely TO depend upon straight
forward construction of a Public Service Law
which does not recognize the propriety OF cap
italizing deficits.
Back OF the Erie Railroad for years past has
been ranged the highest character OF manage
ment. Frederick Underwood. almost IN class
by himself, has worked assiduOGsly, dsvOtediy.
TO make Erie: and in support OF the
progressive Underwood policy. there has con-
ttnually been at hand the liberality and ths
high -mindednesS for which the name OF J. P.
Morgan & Company stands. In the cIearress Of
all the circumstances the Public Service Com
mission must be relied upon to act fairly And
even a adverse decision the present applics-
tiOn will be preliminary to what a little later
can prove Of large and lasting advantage. Eris
will be all Tight-when sufficient capital IS az
hand. All Ii needs is financial opportunity
Some effort is made to create apprehension
gold exports Yesterdays bank statement
with its tremendous increase IN deposits and
surplus reserves, coincident with cOuntry-wids
financial situation unprecedented for abundant
funds, provides ample answer for this CurO
pessimism- We have plenty Of money now
There is every prospect that We are going 10
have abundance, and lasting ease in rates
Among the notable features OF the market
strength has been conspicuous "speciaties-
properties having distinctive individual merit
500 shares are exemplars. up dozen points or
more this week, in this review was aDt1ci-
pated-
So, also, the various Hawley issues have ad-
vanced On an average they rise for the week
from five TO ten points apiece. Every one Of
them is going higher. For every one OF them
there is the value that earning capacity provides
the value that strategic position warrants Iowa
Central common. in market price now the low
est of all the Hawley stocks, may be expected
before long to make especially substantial
showing. In such merger as is discussed (Cnt-
cagO dispatches indicating their impOrtance)
Iowa Central common ought to move into the
dividend list and approach double its present
price.
Colorado Southern. now become James j.
HilIs property. is OF course accentuaIing past
values Colorado Southern common rose eleven
points this week. retaining eight: and ths
two preferred issues retain an average advancs
OF five points after having scored materially
more Both the first preferred and second pre-
ferred are soon TO be retirabie (ff their owners