Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-06-20
FINANCE AND TRADE
Break in Federal Steel Demoralizes
Early Stock Trading.
RESULT OF AN INJUNCTION SUIT
Fair Demand for the low-Priced
Granger Shares.
GENERAL MARKET REPORTS
Special Dispatch to The Evening Star.

Special Dispatch to The Evening Star
NEW YORK, June INSTRUMENTATION in
the steel stocks unsettled the entire market
during the early trading this morning and
forced some sharp sympathetic recessions.
The primary cause of the attack was the
ming of an injunction in the New Jersey
courts restraining the payment OF the re-
Gently declared dividend on the common
stock OF the Federal Steel Comuanv The
suit is brought by a holder of the preferred
stock. who claims a violation OF charter in
not paying full years dividend on the
preference shares before beginning dis
bursements of the surplus for the benefit
of the common stockholders
There was an impression In financial cir
Giles subsequent to the recent meeting of
Federal Steel directors that a fun wears
dividend had been virtually set aside for
me preferred stock, but official confrna-
ton OF this fact may be delayed until th,.
pending suit is argued next month A de-
cine OF 3 per cent resulted in the stock al
Tecty concerned. while i'm neighboring is
sues equally sharp declines were recorded.
continental Tobacco was attacked during
ths period OF general weakness and de-
eilned 4 per cent before reaching a sufn-
eient demand TO change the direction of the
movement.
The recent period of professional domino
policy OF measuring the market by the de-
fective standard of new and untrfed indus
trlal properties. Investment issues and the
better known low-priced railway shares
nave been considered good or bad pur-
ehases, according to the prospects for
favorable manipulation i'm the steel stocks
Ihe manipulation Of the industrial issues
as leaders must shortly give way, how
ever. as the public is daily adding to its
stock Of knowledge concerning them.
Increased information should result in
decreased risk. Stock received as a bonus
by promoters will not be extensively sought
after by the public, since IL has been dem
onstrated that insiders must hold the stock
If dividends are TO be paid. The passing or
postponing of dividends need not be taken,
without investigation, as an evidence of an
Improbable business.
The demand for Sugar and Tennessee
Coal and Iron was again noticeaby better
than that recorded in other parts of the in
dustrial list.
In the railroad list there was the same
cautious and confident buying as that pre-
viously noted. Early declines were re-
covered in most instances, the granger is
sues gaining about / per cent under the
latter demand. Atchison preferred was
taken cautiously, and in other low priced
shares there was moderate commission
house inquiry.
In the main, conditions are the same as
those which prevailed last week 1t is
unanimously agreed that an unusual sum
of money will come out about the first Of
the month, and will go /rgely into the div
idend-paying stocks. From all sources come
good traffic returns and earnings are show
ing increases to extent which must
eventually find reflection in stock prices.
Money is available in round amounts for
adj legitimate purposes. and once activity
is revived there is every reason for expect
ing higher prices. Discriminating purchases
now are being made in the belief that this
time is now approaching. The discrimina-
tion includes some of the preferred, shares
of the Industrial group.