The times. [volume] (Washington [D.C.]) 1897-1901, 1900-12-11

profits and rightly considered it proper
TO take some of them. The people lock-
ing out for bargains bought Tennessee
Gal and Iron and other stocks that have
had the worst tumbles in the recent
break London was a buyer of stocks
yesterday, though not very heavily. After
the first two hours there was a recession
! that clipped the better part off the early
gains. though the close showed advances
nearly everywhere.
II seems probable that yesterdays ad-
vance will not extend much IL any fur
! Their. The opening today may be good,
but later declines are looked for. At most
1t is extremely unlikely that the upward
movement will last over the first three
days Of the week II is not disputed that
underlying conditions are excellent.
During the remainder of the year
money conditions are likely to be strained
and the bears will do everything in their
power to keep prices down. Some people
who ought TO know say that even the most
important of the speculative interests.
that are really bullish in their beliefs, are
working row for lower prices this year
on which TO buy stock. The next upward
movement should be very big and i'm
portant one. Some OF the biggest people
have been laying in immense blocks Of
stocks preparatory to it. But such a
movement can afford to wait for the most
favorable conditions, and the people that
will engineer ii do not care for small fluc-
tuations. Before IL starts, therefore, there
may be a further reaction of two or three
points all over the list between this and
the holidays
The expectation Of this continued reac-
ton in the general list does not preclude
the knowledge that there are likely to be
exceptions. Some securities at the mo-
ment look as If in their recent breaks
they had touched bottom. One of these is
Tennessee, Coal, and Iron. This stock
tumbled twenty-three points largely on
bear manipulation and forced selling. Talk
Of decreased earnings and OF the proba-
hility that the dividend would be reduced
or pacsed on the stock was put out by the
bears and caused some selling of long stock
near the bottom last week. The low price
reached was Sc 1-2. Yesterday there was
a sharp rally to 62 1-2, and the close was
at 81 ga. AS matter of fact the dividend
is not likelyto be cut and certainly will not
be reduced below per cent. The earnings
during the summer were small compared
with year ago. but they are now i'm
proving rapidly.
The net earnings reached their height
last May. when s2J5,60S was earned in a
single month. In August the net earn
ings had dcclincd to s104,209. a decrease
of $4,000 compared with August, 1899.
Since that month the earnings have con-
tinued to show loss as compared with
those of the corresponding months Of
1899, and this no doubt is the cause Of the
street talk about a reduction in the divi-
dend rate. President Woodward, Of the
Hanover Bank, says the November earn
ings, not yet published, and also this
months. are excellent. The company is the
most extensive industry in the new South.
1t mas 10000 acres Of coal, ore, timber,
and limestone lands, twenty blast fur
naces with capacity of $780, tons Of
pig iron per annum. The coal mines
are capable Of producing 10000 tons of
coal per day. 1t has large steel plant
at Ensley, Ala, with a capacity of 1000
tons of steel per day. With revival of
business and the better demand for iron
and steel the earnings for 1901 should
show an improvement over those of the
Presidential year now drawing to a close.
Even IL the dividend were cut in half, 1t
would seem that the stock ought to be
worth 60 Ter cent Of its par value. at
which II would give a return of 1-2 per
cent on the investment. One reason for
the weakness Of the stock during the past
week is that loans were called where
Tennessee Coal and Iron shares had been
pledged as collateral. This step could
have only one effect, namely, to inaug-
urate selling movement at the expense
of market values. Many careful people
advise the purchase Of Tennessee Coal
and Iron around its present price. Fed
nra tor oil ht,nt Mt
terday, getting TO So. 1t is also well
thought of by investors.
Wells, Herrick Hicks, The stock e1-
change firm which is advertising for
proxies for American Steel and Wire
common and preferred stock. for the pur-
pose of ousting John W. Gates from the
of the board Of directors.
report that riany more proxies to be used
at the annual meeting have been re-
ceived.
Mr. Henry Seligman, on Saturday, gave
emphatic denial to the report that the
firm Of W. & j. Seligman was back OF the
effort directed against Mr.. Gates. Denials |
have now come from Standard OIL inter- !!
ests. from Mr.. Dolan and Mr.. Widener, |
and from Mr.. Seligman. In addition TO |
these gentlemen Wall Street has mention
ed ]. Edward AdGicks and George Alfred |
additions to the list Of oppo- |
nents included w. Bourke Cochran and |
Camille Weidinfeld. the latter formerly |
OF Lawson, Weidinfeld G. Co.
The report of opposition from the Have
meyer interest seems to centre around |
Herman Sielcken who resigned recently |
as director of the American Steel and |
Wire Company. Mr. sielcken looks after |
he Coffee and Sugar Trusts business. end
openly announces that he did not APP
prove Of the action of his associate di-
rectors in issuing bonds to themselves for
The purchase of the American Steamship
lake transports.
Mr.. Sielcken has given out the fol-
lowing statement Il notice that a d.
rector defends the action of himself and
his associates by the statement that the
steamship purchase was a good trade be-
cause 1t required no money. This argu-
nent is incomprehensible to me, but per-
maps was brought up in a different school
Of finance. l must still confess myself
unable to understand why the American
Steel and Wire Company. protesting to
have 5000, 600 Of capital. should issue
IS, $3.50, 900 in bonds for the purchase Of
twelve ore steamers, when twelve new
boats of the same tonnage could today be
contracted for and delivered In the Cpring
If 1902 for between SO, 900 900 and 81, 30O,-
700. and there is plenty OF tonnage to be
lad for the intervening season. Seventy
i've per cent of the American Steamship
stock was right there in the
American Steel and Wire directors meet
n.y. OF course / resigned"
The strike on the Atchison system does
not seem to have any bad effect on the
securities OF the company. They were
10Th strong yesterday. closing with Det
,ains. Atchison preferred is strictly
safe investment stock. and has been