New-York tribune., 1909-03-28
The Financial World
THE TRIBUNE'S FOREIGN NEWS.


the quotation changes Of the week Hardly one
important stock declines. Most conspicuous
issues have risen substantially. And final prices
are the weeks best prices
There seems to come now some realization Of
what is involved in the phenomenal ease of
money markets the world over. Bank Of France
aceumulations and all the rest of the ogres Of
that fix skulk sway-they never we're entitled to
any of the consequence Wall Street sensational
lists accorded them But effect which for a
time seemed bad has the actual sequel Of help
rulness in the investment world. out Of cause
less apprehension capital competed-more par
tieulsriy in this country-in gigantic plans for
protection. And whethersfor the individual cap
italist OF the comprehensive corporation. thers
has been for year past persistent piIinz I'D
of cash reserves. Actually our biggest corpora
tions have overfnanced themselves In recent
months bond issues after bond issues have
trooped along. scarcely any important enterprise
falling to join in money raising programs II
wasn't half so much that funds were needed as
that funds might be needed Thus we have to-
day virtually every corporation treasury ilIsd
II is difficult 70 think Of further hnancierins
requisite in any quarter Missouri PaciAcs ar
rangements now virtually complete. OF course
naturally. in absolute certainty-these piled
up corporation surpIuses are not going to liz
idIe-for back Of this abnormal abundance or
money is go1d-producing situation which IN
so far as this country IS concerned surpasses
all precedent
Take for illustration. what nov develops in
what ss recognized as the standard gold mining
property Of America. Goldheld Consolidated. oS
Nevada But little while ago cynics were
characteriZtng this property as mere prospect
It is disbursing $4,000 900 in annual dividends
now-and it is earning vastly more. twice as
much at least not taking into account an arnaz-
bonanza Cad
The American mine keeps pace with the Am=ri-
can farm
II IS announced that Nrr Hartman suddenly
decides to shorten his Western rest cure in order
to hurry to New York-ft being whispered in
banking circles that during the past week an
option executed in favor Of Mr. Hartman and
his associates offers them the opportunity to
acquire ownership Of Vanderbilt railway hold
inss entire
That Mr.. Hartman and Mr.. Hill have beam
intimately associating during NT. Hsrrtn1an-s
Western trip may have quickly revealed signi6-
cance-ceTtain beyond any doubt being the fact
that between these two giant interests fighting
days are over. even cooperation days already
dawnsd.
Chesapeake and Ohio progress beyond rhs
general anticipation will 60 on record right after
the turn OF the month. r. can now BE- an
nounced-this review is authorized 70 announce
own entrance into Chicago Wall Street is un-
prepared for the consequence Of an announce
ment like this-transmuting Chesapeake forth
with into importance trunk line Of tnde-
pendent. potential rank. The coming advance
in Chesa peake and Ohios dividend rate inde-
pendent as that expansion is. does not BY anv
means measure the progress which the com
pany's new owners are already accom- mpIfshinE
Coincident with Chesapeake and Ohio deveI-
posed for the Baltimore and Ohio. for that sys-
TEN is to have expansion beyond bounds hitherto
anticipated. Upon the basis of its dividend re-
turn Baltimore and Ohio is oneFof the exrep-
tionai bargains of the present InaFket-heId
back so far, apparently. by reason of inside
pressure there being indications that important
international hnanciers have been seduIousIv
striving to accumulate a large line of the stock
without permitting any quotation advance.
Having now completed their task they will b
less disposed 70 force an abnormal situation.
and with free market. Baltimore and Ohio
ought forthwith TO proceed 10 a market value
more consonant with its established s per cent
dividends II can rise 10 points over the present
price and still be yielding per CeUt-whiCh IS
twice what an investor can get for his money IN
the loan market
Among the events Of the week distinctly
couraging has been the exhibit Of strength
in Chicago & Alton Professional oracIes put
themselves 10 much curious trouble 10 utter ex-
plantations What is strange-aIl that IS strauEs
in the incident is that it did not come earlier.
Alton. the stock advances in value because Al
ton the railroad advances in vaIue-nlarv eIoUs-
ly advances Merriment convulsed stock TX
change scofrers when barely a year ago il was
pointed out with some specifcness in this re-
view that Chicago and Atoms progress was 81
sturdy. definite. incontestibIe, that dividend rec
ords must speedily come mounting Poor Old
Alton" chorused the cynical hosts. and an
initial 1 per cent in August but challenged
heartier gibes-only modified when at New
Years there was disclosure Of > per cent mora
ready for disbursement-with proof in de-
tailed official statement that these dividends act
ually were allowances out Of net income far
and away beyond any maximum forecast. With
some condescension il was. however, conceded
that Alton might after all. be really counted Il
per cent stock Official figures showed twice
4 earned. That the basis OF five months
OF the fiscal year (July November 20). Oc
course the miserere crew were sure that no such
pace could be maintained: such squirt at
the expense of proper mana cement and must
really impose some early savage penalty. But
the supplement- that does come is still more
shocking to pessimisn's sensitfveness. Alton is
now found earning not the / per cent disbursed
last August. not per cent indicated BY a
half yearly . per cent payment, not the per
cent of figures fled with the Stock Exchange for
December 31-but approximately II per cent
So much Is important. There is more Alton
common stock is now to be put on > per cent
dividend basis. This accounts amply for t1s
rise of the stock, justifeS il fully. Cert1rss IL
It's mere sensible reflection OF faCts-the new
Alton facts of good management IN mastery OF
a superb business opportunity.