New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-11-06
FINANCIAL MARKET
Wall Street Is More Optimistic
Over the Future of Money d.
and Business.

| looked upon with the extreme pessimism
noted on the announcement of the suit
against the United States Steel Corpora
ton, a reflection of which is found in q
better demand for securities at advanc-
ing prices. Investment operations are
still light and forward movements in
business continue to be restricted. but il
is believed capital soon will move more
actively into the channels OF trade and
that railroad and Industrial companies
will come into the market for funds in
Cident TO needs in connection with bet
| terments, extensions and general inn
provements. Nothing in the nature Of a
! business boom is expected, but at the
moment opinion favors the idea that the
| liquidation that has taken place in all
markets has more than discounted the
various Uncertainties in the situation,
| including next years political elections.
| The inquiry for short term securities Is
| better than that for long time obliga-
| tions. Railroads TO great extent are
| limiting their issues to short term notes,
is relatively heavy it is probable that
with growing confidence in a satisfactory
solution of perplexing problems con-
fronting the nation corporations will
switch from short time loans TO long
term bonds. In spite of the plethora Of
money it is estimated the cost to the
railroads of securing accommodation on
short term notes is in the neishborhood
of per cent. while high grade bonds
can be placed on n much cheaper basis.
Interests identified with the United
States Steel Corporation evidently are
accommodating the issues Of that concern,
an operation that easily can be effected
through the money at their disposal
through control Of banking power. The
Wall Street Journal" in discussing
United states Steel affairs and the pos
sibiity Of dissolution makes this inter
esting statement: Should the Steel
Corporation be dissolved the interests
now in control could retain their pre-
dominating influence in the steel trade
only through ownership of an actual ma
jcrity Of the stocks Of the segregated
companies. They retain control now not
through ownership Of majority II
United States steel stocks, but through
their ability 10 obtain proxies at an
nual elections. No interest could wrest
control from them, because the amount of
capital involved would be too vast to be
obtained by any rival group for any such
purpose. But with the company segre-
gated into several parts il might be DIFF
ferent Control of one or two of the
parts might be obtained by rival inter
ests without much difficulty, and the
present controlling interests in the
United States Steel Corporation might
even be prevented from increasing their
holdings in any one Of the several com
panies beyond what they obtained at the
time Of segregation Their one means IF
retaining control Of the industry in the
event that the corporation is dissolved
is TO obtain control. absolute and undis-
puted Of the United states steel Cor
poration through actual ownership Of .
majority of the stock Here is where
the control Of enormous banking power
appears TO come in There is no reason
to suppose that while the securities may
be under the cloud Of antitrust uncer-
tainty banks aud trust companies owned
by the ruling interests will not he willing
to accept these issues as collateral while
accumulation is I'm progress.
Earnings Of the United states Steel
Corporation for the last quarter do not
warrant the idea Of reduction in tho
common stock dividend, while current
reports from the railroad companies do
not bear out the theory held In some
quarters that disbursements to owners
Of railroad shares will he placed on
lower basis There has been uncasiness
at times in regard to the ability of the
New York Central TO maintain its > per
cent rate, but with the publication Of
each succeeding monthly statement the
prospects for earnings largely in excess
of the present dividend grow brighter.
Based on the results of the first three
quarters OF the year. the road should
show in excess of per cent for the
twelve months, or about SGOO0,OOo
more than dividend requirements. In
the nine months ended September 80
net earnings showed a gain OF S2565. 100
over the same time in the preceding
year The Pennsylvania Railroad. while
showing in recent months a falling off
10, ND IN
earning more than it needs to meet its
is per cent dividend. and il Is worth
noting that the roads balance sheet as
of June 80. Just made public. is one OF
the best ever shown by the company.
cash on hand amounting to more than
$50 100000. with working assets OF up
ward OF sol 100000 against current la
bilities OF S31 ,64S,000. The Southern
Railway is another road that is making
favorable exhibits. Traffic on the COM
pany's lines is heavier than at any pre-
ceding time in the history Of the prop
erty, and it is a matter of only short
time when the preferred stock will re-
turn to the full per cent to which 1t is
entitled. There is nothing in the rail-
road situation that spells business dis
aster.
Money rates are on an easy level, our
bankers continue TO use their credits
abroad and foreign exchange quotations
and the price Of money in Europe sug-
gest the possibility Of shipments Of gold
from the United States. We can afford
TO send the metal TO the other side. In
the last twelve months the amount OF