New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-06-25
Gnanfial.
The Financial World.

Steel Wire incident The Street has discussed
Steel Wire every day. The climax was reached
Friday afternoon. when the directors OF that
company. after session from eleven till two.
formally declared that there would be no dlvi-
dend on the common stock. So much Tor all the
pledges made from January to June Prelmi-
nary TO this, an Injunction had been obtained
In the New Jersey courts on the payment OF
the dividend on Federal Steel common. When
the news Of this was sprung Tuesday morning.
suspicion was at once excited. and very freely
expressed in the Street, that some Of the Steel
Wire people were at the bottom Of 1t. Predic-
tons were made that the injunction would be
used excuse for not paying a dividend on
Steel Wire common. The first effect OF the In
junction was TO cause bad break in the price
Of both Steel Wire and Federal Steel stocks.
which effect had evidently been anticipated and
was availed OF for covering purposes. Later It
turned out that anticipations Of the other use
| 10 which the injunction would be put were
correct. The wording OF the resolution passed
by the Steel Wire directors was hailed with
hilarity as "a dead give away"
The extreme interest the Street has shown in
this affair is justified by its importance Look
at the facts. Here is corporation having
outstanding S3S.O0OOOO Of preferred stock and
| SAT 100000 OF common stock. II is the largest
employer Of labor Of any manufacturing con-
Germ in the United States. II has practical
monopoly Of an important and most profitable
| department Of the countrys metal industry. II
| is conceded by everybody TO be a large money
| Garner It's securities have been bought by the
| public in the expectation that these earnings
| would come to il in dividends; and on promises
| over and over again repeated that the dividends
should begin on the common stock, this month
These promises have been broken. At the same
| time II Is claimed that the dividend has been
earned. Though however. all pledges made
| have been violated, the stock will not thereby
| disappear from the market II has come to
! stay STAY 1t will AMI must and ii Is therefore
| important to inquire on what reasonably safe
basis the public can trade in it. Such an in
auiry. in the case Of a corporation, goes pri-
| marily TO the character OF the men managing H.
| The first thought that naturally occurs TO the
| mind in view of all the circumstances. Is that
a safe basis might be found in the direction
once tersely indicated about another affair by
the veteran operator, Mr.. Cammack Thieves
| robbers hghwaymen by c.. You know
where you stand" This implies that SAFETY Is
TO be found in dismissing ordinary illusions as
TO the way the company will be managed. As
| such il is Of general application. A local APP
| plication Is indicated in the remark OF West
| ern gentleman, closely associated with the man.
aeement OF the company, 10 a New-York friend
| who sought information from him few days
| ago. The Western gentleman said: DO you
| think we are going to declare dividend to help
| New York out? To hell with New York" This
impIes that Steel Wire dividends depend upon
the relative position OF the West and New York
| in respect to the holdings Of the stock. II the
| West is loaded with 1t. dividends: when the
| West has unoaded on New York, none
Now IL we combine the two ideas indicated,
| one having a general and the other specihc
| and local application, obviously we are near 10
| q safe ground upon which TO trade In Steel
| Wire stock Obviously also at this time Ne"
York has the stock and the West has not-un-
less this position has been changed which II
probably has been 10 some extent by the ua"-
ing of the past three or four days.
ON Tuesday morning the stock was knocked
| 70 its lowest point-52-on the news OF the IN
junction That day there were little over
| ~ 600 shares traded in. on Wednesday
smaller amount between 53h and d. Inurs-
dav over $4,000 shares between o2% and oirs
on Er,dav 10000 between 527s and 55A. This
| trading and especially that on THURSDAY IN
| dicated covering Of shorts; and as the STOCK
| n,oaa ,ts highest price Immediately after the
dividend announcement, it may be inferred tha'
insiders had not only taken In their snorts' out
| had picked up some long stock Tnat the IN
| s,ders had covered rests on no mere assufhp-
| ton: since Wasserman Brothers on WEDNESDAY
and Thursday returned stock that they hau
been borrowing This information comes from
| houses 10 whom the stock was returned anu
| therefore admits of no question
or course there Is much soreness OF feeing
over this whole affair. and the air mas pee"
streaked lately with blue; but really IN another
view. people ought to be thankful 10 THESE
Western gentlemen. For this reason-tha' s'
the first move in the game. they nave Hia''
| known to the public exactly what II mas 10 Ca
meet One word more. Tongues nave pee"
| loosed by this business. and things nave Deen
told which before people were reluctant "
speak OF. II the financial methods OF 'ha' 'o"'
pany are not changed. not only VIII there 0e-
as now-no money for dividends on the 'oi''"O"
stock. but there will be none for the preieiieN
Turning to something more agreeable IL may
be noted that the st. Louis Southwestern Se.
onds have paid their first semi-annusl lh'e'.
The manager OF the road IS conhdehI 'h"' U.s..
may be considered permanent ana 'ha' ~"
bonds will always be good for their amman
,er cent Friends OF the property expect 10 se'
much higher prices for it's securities.
The general market was comparauVeS s'lv S".
Yesterday under the lead of the Narue'o-s
stocks. The showing OF earnings MADE oy Nv"
York Central for the year, of 5o2 per cei' -
the stock was considered highly sa'isiae'' =.
To this was added the big earnings "hc"
Paul continues to show; and when WIN ~ -,
ND s3SOOO.OOO gross for the year-oy iA rs.
largest amount il ever made in its history -
hank statement was unfavorable. but o.,
seem TO have any effect. Apropos or thi'' -.
; ever. the Financial Chronicle" SOUNDS -
Of warning It points out that the reser'e' -,
running down weekly. from exports OF s0'u
| .AO. on,,sos. and suggests that this rs ~