New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-29
ALLAWAY'S REVIEW

| have committed themselves so -,
/ they did In public statements ws..
warrant There is no doubt that 49,
sale Of bonds and notes has been -
or is TO be made by a number ~
portant railroads. The soecisc
nouncement Of the fotation Of $50 oaa :.
of st. Paul bonds carries with 4, :
news that st. Paul is paying sone,s.
over 5 per cent. for the borrowed mo,.
in view, OF the ease OF money In. our
country it Is somewhat singular -.
such a rate should have to be na,s !.
French lenders. Why American ca,;..
should baIk at an investment which =.
eign capital is willing 10 undertake i,
disquieting feature OF the situation. 4,
in view Of the high standing OF ST. p,,.
it is doubtful whether the other -,..
appealing for foreign financial ASA,
ance can obtain equally good tarrs-
certainly they can obtain no better.
Most reports of railroad earnings nal.
disappointing showing Gross incrsa..
are generally recorded. IN many can
these figures are fnspiriting. But :,
exhibits differ materially from the rrs
showing-are discouraging. II Is Idle a
an influence upon public sentimen,
offer elaborated theories for expianas-
What is pre-eminently clear is thar IN
earnings, however large. are no Longer
safe indication Of any corporations On.
perity-are misleading except in COIN.
dent consideration Of devastation vhir .
these gross increases suffer from TIRE !
creased cost Of equipment, material. I
creased wages and in conspicuous cv
increa sed dividends. II is not unnarr
that railroad managers generally aE.I
that the burden upon earnings hecors
too great 10 be borne. The only remel
suggested is increase In traffic rzial
Surely this is a pleasing solution to tn
problem If nobody had TO pay for III
fncrea self nobody object Take, for n
ample. grain shippers The grain na
kets experience a heavy reaction Il
prices, partly due 20 natural Gauss
partly due to the collapse OF specuatis (
bull manipulation. Farmers receiT-.
from ten TO fifteen cents less for thsc
grain than up to quite recently are u
likely to hail with Joy the demand 70 psE
the railroads more for carrying u
cheapened product. The Interstate Con
merce Commission may ratify the al
ing of rates, but that body Is the crsaiH-
of Congress and il must be taken II
account that a new Congress VIII
elected next Fall under stOrrnIul CONF
tons. In this question OF railroad 7la
the people are the court or last rssr
and will have the final word to q
There will be much opposition 10
maintenance OF high dividends ana ?
navnent of high wages II the no,
NECESSARY therefor is to be taken n
the pockets of the farmers. Al me Vs
least the outlook spells controversy
not a cheerful factor in either me
Iitical or economic situation
Wall Street enjoys revival OF the .
pectation that United States Steel ns's
are to be listed at Paris. Mr.. Mszr
by diplomacy seems to be accomphsal
in full his original purpose. II Frsna
investors take hold of Steel stocks
means the retirement Of a great VOTE
of those issues from the specua~
arena-because French investors bu!
keen. And certainly the business Of o
Steel Corporation warrants conndsn
abroad. as at home. 1t seems esrai
that 1910 will be a record breaking u
both as to volume Of output ana =
profits. The present . per cent j"
dend looks very conservative ana la' :
would seem to be no difficulty IN =
maintenance of the policy or tne -
poratfon announced at it's last nssls
that this dividend has come TO stay D.
the United States Steel CorporauOH
observation-disclosures The greates'
MUS OF the country directs IS hHA-
and handles its physical operations
harmonious combination, producins
suits far and away beyond anything
before achieved 1t represents tne
of human intelligence and unquesl iS1
integrity. The French people VIZ
regret investments in Unltea go.
Steel Already more than lVVVVV -
boIdars eniov the benefits Of this
management and by the Tune ,l'S r-.',
hers have doubled or treoled =,
States Steel common stock VI
ceased TO be a speculative lssu, |.
take rank among the hisnes
worlds investment properties
The Steel exhibit is pleasuraos
every wholesome standpOint-is
firnatory of every line when JOS
written in this review bearing upO-
Steel subject for months and i0'
past. What is unfortunate, no"s's
that the Steel record presents
ness. other departments OF indHsu,
not similarly fiourishing- 80
there has not been equal s'r'As
ward devotion to the public me-. ,r,,a
being too fashionable in other 1 Ga, u,r
~. ind,,Iqe H., mystery and bind ps vya.r
fornances instead OF open a-Nncssvenesx
the Steel record and It's a.1Ss in ri
offset by exhibits like those inaS,ssr or
name of the Copper Trust anu ~, S, usss
responding dubities And IN -. ~
of the business situation ths ne Sc,
ket finds reflection. Nhss ..ss purT
Exchange is pleased 70 can rs-tcfss
halts. refusing in any way ~ ..aI rule ~
in the market Were the steei ave 4
prevailing rule we would n os
afniction of our present dulh ss.ause
public is not now trading
public is afraid TO trade
II is the popular view that -
American railway bonds IN E''
forthwith mean the purchase -
sa1a OF aouinrnent--and on tbs a.