New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-13
ALLAWAY'S REVIEW


point OF view. The conditions MAKING
for betterment are 90 palpabie and the
Street has become so familiar with Their,
that they receive scant consideration IN
daily transactions. although. Of course
cxerting steady and increasing influence
upon the investing community. Hence
positive developments for the time being
can scarcely be considered a speculative
factor
The bear party refuses TO accept mar
ket strength as authorized and continues
it's assaults upon every plausible pre-
text manufacturing reasons when
such do not naturally appear But their
efforts are vain. After a prolonged rise
the most that tho hear party can accom-
plish is the occasional recession Of fssv
points, which are Immediately recovered
when short selling capacity Is reached
Obviously there is outside OF Wall Street
intelligent comprehension of the intrinsic
strength of the American business AMI
financial situation. Common sense is in
the saddle.
United states steel common Still leads
still commands. Worldwide apprecia-
ton of the present and prospective value
Of this stock grows daily. II ts being
accumulated by powerful capitalists al
home and abroad-and they are followed
in large numbers by smaller investors.
Steel business conditions continue at top
notch and there is no longer the least
DOUBT that the quarter which win end
with the close OF iris month will show
ma gnificent trade and fiscal results On
Tuesday next the stock will sell ex-dfvi-
deud Of IL. per cent. 1t Is handsome
dividend on the basis Of what Steel il
now selling for. and is likely 70 be quick
ly recovered in an active market. That
the next dividend declaration will be a.
ar increased rate seems scarcely a mat
ter of doubt. The expected D per cent
rate would be ultraconservative, in view
of the way earnings are increasing and
the surplus pilfng w
Railroad business is good AS expected
after the recent special dividend dist-i-
button by the Lake Shore, the New York
Central increases its dividend rate 70 s
per cent-amply warranted. IL is pay
ing its dividends out of revenues more
than sufficient to provide for them and
leave ample cash OF hand for all physical
needs of the road. II New York Central
is prosperous other railroads are. All
the big trunk line systems are doing well
and this finds recognition tn the excel
lent buying of their securities in the
stock market.
Among even the most conservative OF
experienced Wall Street interests there is
expectation that we are close approach
ing the development of security market
activity which is not unlikely 20 reach
extraordinary proportions That here and
there. temporarily. market interferenees
appear and recessions are recorded can
not affect this judgment-for following
the recent rise of an average of To- points
or more in the general market there Ger
tainly is Scdnt reasO for worry over the
OverreactiOn of point OF two
What goes on in the European markets
in the excitement over rubber shares Is
illustrative OF much more than what i'm
mediately has to do with the rubber
/ stocks themselves. Superficial criticism
/ started out 10 decry the activity and
strength in rubber properties. character
izing the publics absorption OF rubber
I
gerous. Yet what is commercially fndis-
putably OF record is that. as far as stand
/ ard rubber producing companies are con-
cerned, the buoyancy that it is showing
at London and in Paris has amply good
! reason. Crude rubber is q commodity
now in demand far beyond ali precedent.
! The automobile industry alone provides
/ an exigent demand before which all past
/ available supplies are absorbed offhand-
i and under the stress of this commercial
/ require crude rubber prices have
/ been mounting higher and higher till for
merly normal quotations are materially
more than doubled-with the trade pros
pect. the sure and only prospect for sui.
further advances They who rsCognizs
these facts and the consequence Of them
are not likely To wonder at the enthu-
sfas.n Of the public (whether spectators
! or fnvestorsl over new and exceptional
income possibilities.
/ In the New York market We have emily
one standard property representing this
| extra ordinary new crude rubber Situa-
! tior-the 1ntercontineutai Rubber Com
I pany-whOSe shares. dealt in on the curb.
| have this week begun u show Suhstar-
7 tIal appreciation. The company has large
carninGs-large net profits-has prospects
which have not hitherto been revealed
/ for the EnanCierS identified with the
propertys development have proceeded
wholly upon independents lines. using
/ their own capital exclusively as was rot
! strange in rev OF the TACT that the con-
trolling group is comprised IF standard
: Oil capitalists, including Mr.. Rcckefsls-,
7 +. b. Aldrich and e. VI. BaruCh. These
shares are 10 be- listed upon tha Stock
( Exchange fact which discovered b.
, Wall Street traders has led 70 the cur
/ rent activity and buoyancv. for IL IS aQ-
+, rreCiated that such official sCticn wonld
not be in contemplation had the corpora
tons affairs not reached a point whers
| conditions have been tested and pros
/ perity certified
| Incidentally o. ignifiCance-atts
the alertneSs and foresight Of American
business leaders-is the exhibit made In
the affairs of the United. States Rubber
Company. whose manufacturing Outp'i
depends so much upon crude rubber sup
ply and price. That company's fiscal
year closes this month-and in the face
% the extraordinary advance in crude
rubber an official earnings statement viii
be shown encouraging beyond any hItl-
erto- So substantial are the net sur
pluses for the year that TumOv recently
has been predicting dividends for the
common stock but as officially stated