Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-10-17
a Professional Tone Continues to
Pervade the Market.
LIQUIDATION OF INDUSfRIALS
Expected Effect Of the Years Ire
mendous Consultations.
S ELL1NG STEEL STOCKS

Special Dispatch TO The Evening star.
NEW YORK, October I7.-Today's stock
market was fully as professional as most
OF Its recent predecessors. and was devoted
largely TO a liquidation Of Industrial Is
sues. A long delayed interview with the
leader OF the depressing party was given
out early in the day, but was received
somewhat skepucally In many quarters
The success of recent selling scarcely need
ed such a pessimistic utterauce n, order IN
make desirable market for similar action
1t was regarded as a device to facilitate
covering rather than the outlining OF A
future policy. The weakness In the fndus-
trial list was well-studied effort TO assist
covering in the railway department. Asfda
from the present attitude Of the room on
the subject Of the industrial shares there
is the thorough conviction Of all couserva-
i've operators that the Incorporation and
capitalization Of new concerns during the
last twelve months seriously threatens
prices and the stability Of the general mar
ket
In circles most familiar with the modern
consolidation methods It is understood that
the preferred shares alone represent the
tangible cash value of the plants The COM
mon shares are supposed to represent the
good VIII and other sentimental value Of
the same Indefinite sort. The latter stock
too, in many instances. was given as q boz
nus, and whatever it will bring in the mar
ket would represent a profit TO the origi-
nal participant in the cOnsolfda ttou This
sort of tinanciering, while not uncommon in
the industrial department. is not Justly
applicable 10 the entire group Of such Is
sues: The reorganization or consolidation
or the manufacturing Industries has been
badly managed in many instances tust as
disregard for value has operated to the
injury OF railroads I'm other years.
Railroads have gravitated into receiver
ships Just as the recklessly organized in
dustrials may do in the troublesome times
whlch follow the digestive period. There
Is nothing new to be pointed out on this
subject since the warning was practically
universal while the subscriptions We're in
progress.
The banks very creditably refused to as
slst further floating Of such enterprises
after discovering that the public was fail
ing in its exercise of discretion. The story
now used to depress prices because the
securities have no loan value is scarcely a
new development. The recent reduction in
loans has not been made at the expense
of the well-established investment shares
The banks are looking after their liabiIi-
ties and underwriting syndicates have prob
ably attended to the same fOrmality.
The good industrials will be taken care
of just anything Of value finds friends
at bargain prices The war parry is likely
TO center its future attacks on the Industrial
list, but such a process should not incite
over-imitation on the part Of the average
trader.
Today's selling was confined, in consider
able degree, to the steel stocks. all OF which
yielded easily. Houses heretofore carrying
large lines were openly selling them down
TO safety limit. In the railway list there
was frequent evidence of good support but
the room was openly opposed to higher
prices. Foreign houses offered money in
round amounts at five per cent, and the
call loan market is no longer an obstacle
Further relief from the treasury is now
assured. should it be needed. and agrees
siveness would at least force out a very
considerable short interest While the
money market is moving along in such a
satisfactory way II may be policy to post
pone any movement which would add TO the
loan account