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

government report on grain To apnear ~ ma
afternoon will doubt confirm the N'oHaay
good reports recently made public nv Ably
tistical bureaus Of our railroads T. s@-
sequence 10 this basic situat ton CONF so@i
from Industrial and commercial centre. 's''s
creasing trade upon a scale evidently, =. "-
radio but permanent The immediate s,,,,,,aO.
the steel business IS certified by the stead -
ward progression OF the Steel Cor up-
stocks. which are beginning TO register -
suit of those developments which ba,,.
dwelt upon In this review. Steel cor,moD IN
It's practically daily new high record bsvs,-s
receive something like adequate marie, y
ignition
! Nevertheless the fact remains that vvba. ~
Street means by "the public is st!I An -.
factor in speculation The large advancss -
the result OF actual Investment b,,iry -
by small capitalists and BY the great 49,,
interests who are In a position fairly IN -
what lies ahead. Despite these facts n-os
sionaI Wall Street stays scepticaI and -
For example. after the signature bv the -
dent Of the tariff BILL last THURSDAY. Wall g..
applied to the market situation its tme-,vo-'
traditional theory that the good nevrsu -
out. reaction was imminent. and the rank "a
file OF traders at once proceeded TO 20 "s5o-,.
OF most Of the speculative favortes W..
happened? reaction. due to these short sale.
OF one TO one and a half points which did N,
short seller no good, recovery coming so swiftly
TO preclude the possibility Of profitable setr.,
ment. 1t Is no time to govern market operation,
by traditional rule Of thumb. We ara nor 1Iv,r.
under the conditions OF ten or twenty years a-s9
we are not subject TO the vicissltudes OF forTso
times. The radical changes which have corr
, about in obedience 10 the laws OF natlra -
economics create new conditions and tbssa ~
what must now be Teckoned with. Increase ~
population. increase Of mineral and agricultural
wealth. increase of consumption of food sr,S
which absolutely threatens to curtail IL nor ~
fore long TO abolish our power TO export oraio-
all these fundamental aCtualities are silently I'm,
pOtenty at work revOlutiOnzing the secprirg
market. When We are told that prices are nm
duly high because In many cases they reach az
surpass the records of 1906. the sufficient answer
Is that We have added 'hree years to the cour
try's growth, and that we have passed through
the seventies of a purely sentimental artificial
panic without the destruction Of . single unit Of
productive power
For illustration. examine the present position
of the Hill railroads. While the Harrima,
stocks have been enjoying sensational rises tba
Hill stocks have been relatively sluggish Tbl,
must be due TO nothing more than lack OF trad
ing in them. for their outlook is tust as bright
as is that OF the Hartman lines. Earnings Of
Northern Pacific for the fiscal year ended June
80 exceed IL per cent on the total increased
that the current fiscal year will see those earn
ings mount TO at least Is per cent-such opin-
ION being based upon the remarkably aattering
outlook for the Spring wheat crOp-a crop which
means much to Northern Pacific. Reliable re-
ports of commercial origin are almost unanimous
10 the effect that North Dakota alone will raise
100. geo. 900 bushels of Spring wheat-about one
seventh Of the entire wheat crop Of the country.
And. happily. crop prosperity is not confined
TO the Northwest. Equally good showing is
made South and Southwest is indexed in the
stocks Of Atchison and Rock Island
Southern railroads have been somewhat held
in check by the recent cotton crop report-far
larger effect than deserved being given to il
The South is more a One-crop section Even
at the very smallest figures quoted a. the pros
pect for this years cotton crop, the exhibit
simply stupendous beside what barely decade
ago would have been regarded as a vast Weld
And still. the rise from a standard Of IoO90900
bales 20 fifteen and sixteen million has been al
tended by another even more influential deye-
opment-the lifting of the proportion Of DIVERSE
fed Southern freight traffic to the point where
cotton becomes relatively a lesser element, IN
so far any ordinary crop shrtnkage may be
shown. What. moreover will be taken into con-
sideration by experienced students of the sitla-
ton lies in the fact that those sorts OF new ,Ta
fic now commanded by Southern railroads are Of
a character which carried at better rates
than raw cotton pays. Finished cotton manu-
featured goods and finished iron and steel prod
ucts are conspicuous in this expanding cat
alogue
II is TO be noted. too. that ii is not in The
Eastern South that cotton crop shrirkase SHOWS
largely. Texas Is the sufferer instead Of Ala-
bama Georgia and the CarOlinas. Appreciation
OF this fact accounts for the confident ouy~s
that is showing in Louisville and Nashville anu
Atlantic Coast Line stocks. There are indlcF
lions that the same exhibit viii soon be appear
ing in the market for Southern Railway ISsusS
Not merely can Southern Railway preIrIie".. -.
turn 70 it's normal dividend basis, out $50
mendOus Is current Southern growth anu IPP rUs
perity) Southern Railway common Is UeS Li.S
soon TO be showing an intrinsic Va4ue HUI ''''"
erto approached. .,i,f
quarters that before long We VIII nav, -
nouncements OF important cOrporatiou Is -
wherein there will show even reVo1Qtlot t,,tny
fiuence-and one such deal discussed IN , o-Is
circles has 10 do with the future OF a h
Railway. The gigantic ROCK ls-aHu - svsou.
It's comprehensive plans Tor Eastern N.es.st
reut can splendidIy supplement us 49, 49,
lines by acquisition OF the southern +--rrsrly
And what formerly would nave STelu0u ~ f1-
impossible may now be readily pr2cticoO' ,loss
Rock Islands controllers have now oo1 e;rv-sv
allies OF the controllers OF So-liSi' %arsAts
Such merger would mean eNcgp.C 5,,est not 70
for Southern ports. such a u3el sV' 97,r,n,ou a
be long in making southern Railway - s,h-
dividend payer That this PI'Spels1 - vroup
stance IN IL is evidently the view Of ohe - tor
OF New York Stock Exchange operators " ,-,isflv
some time past have been diligently az 4,rnls
accommodating Southern Railway S""'
incidentally talking pessimtsJlc-
AS the market proceeds to develop-@A1
those who prophesy sharp reaction are 0o''. ,o,
anticipators that the market IS going % y" .nat
and develop trenendously-it IS proO"O'-. .;al
such outside interests IS become eo'.so4 ia
will largely have 10 do with STOCKS VI ed
price Few OF these stocks have ye' III
rro,sr,aI1v vanv Of them are selling mu'A