New-York tribune., 1900-04-18
THE STEEL STOCKS SLUMP.
EXPERT OPINION DOES NOT SUPPORT
JOHN W. GATES's POSITION.

John W. Gates has never been credited with
being in business for his health" as the COM
mon expression is, 80 it was felt in Wall Street
yesterday to be pity that he is ne said
Monday, not interested in the stock market.
For there great possibilities of gain in the
stock market for man who had the power. and
used 1t, TO shut down suddenly q third Of the
plants of a great steel manufacturing corpora
ton, in the face Of concurrence of expert opin-
ion that the iron and steel industry still
prosperous, if such had only been familiar
with the process known in Wall Street as sell
ing short" AS it is. somebody some set Of
men has undoubtedly reaped rich advantage
from the move of the American Steel and Wire
Company, while all that Mr. Gates has earned,
far as the absolute knowledge of the public
goes. observers OF the situation said yesterday.
is the reproach Of his associates in the steel
business and added measure of popular dis
trust for the properties with which he is ident
fed. But there might be compensating benefits,
it suggested.
Naturally. as the most influential factor in the
American Steel and Wire Company, Mr. Gates
holds stock Of the company; and not less natu-
rally. II was said YESTERDAY he would seek 10
part with his stock learning that the COM
pany was in a bad way. SO it was no surprise
yesterday to various Stock Exchange houses
when there were delivered to them blocks of
Steel and Wire preferred stock in the name OF
John ". Gates which stock had been bought
by them on Monday. Steel and Wire preferred
ranged on Monday between ~ and SOas, closing
II per cent above the lowest. Yesterday it dipped
as low as TT2t. affordng an excellent opportu-
nifty for one who had sold outright at around -
to reinvest or TO who had sold short 10
cover. as the stock rallied to S1l2 at the close
That the real facts about the American Steel
and Wire Company must have been almost as
recent and complete a surprise 10 the manage
Inent itself as to the public is shown beyond a
doubt il was remarked yesterday, by the fol-
lowing interview with AN officer of the Ameri-
can Steel and Wire Company published only
two or three days ago:
You can say with positive:.ess and certainty that
the steel and wire business is better at present
than a; any time IN me -2st Lhree mo mon Il.
on the contrary. they are firm and strong. and II
% per cent better now than it a year ago and
dreamed Of doing business some months
ago. This trade ts very rernunerative, and We are
constantly working to build II up
Much plain language was uttered yesterday by
men prominent in the direction of other steel
companies regarding the action of the ATeri-
can Steel and Wire Company and Mr.. Gates's
explanatory interview. President Gary Of the
Federal Steel Company. in response TO inquiries
for his views on the subject would only say.
The news in the iron and steel trade relates
pany. concerning which l have nothing to say 1t
is said the officers OF that company have made an
official statement
Another steel authority said, as quoted:
am utterly disguised with the action of some
of the Steel and Wire management 1t is the worst
case or betraVaI OF IIlelis l E ~or,,t tis I,I-i
ness men. that I have ever known.
months Of the current calendar year 81 400 00o
and the earnings since those two months are even
Nav ! viii be fully s63oo60o or sufficient 10 pay
ard full sf6r TRe n export business alone
is more than s2,Oooooo a month
Stu another man. representing one Of the
largest of the steel companies, declared that in
stead of the twelve mills of the Steel and Wire
Company having been closed because Of over
production. the company had on hand orders
enough to keep them running for six months 10
come.
The editor Of a leading trade paper was quoted
yesterday as saying:
It is very singular that none Of the correspondents
of trade papers in any part OF the G3an[@ET @ n S
tbbare and retailers of excessive supplies nails.
wire wire f-nce ard other PToducts 6' } jLT li1i
I}rev nave done If the of the trade was such
az T6 iusfifv the closing of twelve mills. l know
rat the sales agents Of the American Steel and
Wire Company an over tne No. r,.tlf - ,,-2r Inc
smaness Of me stocks OF {er geS Sc M we ,G9 prd
vented the possibility Of a glut in the market,
Archer brown. Of Rogers. Brown 6 Co. is
other well known authority who takes the view
that the shutting down Of the Steel and Wire
company's mills has closer relation 70 stocks, in
the Wall Street sense, than 70 stocks Of steel
wire and steel rods He said yesterday:
Manufacturers Of iron and steel who have moth
ing 10 do with Wall Street are amazed At What IS
5gUT OUT u with great show Of authority certain
ing like It ever before seen in tho IRON Lrade
Il would be ludcrous. II II We're not serious, I2r
ssd Hon trade conditions can be brilliant
one week and ruinous the next will mEstity nno-
Wan street public does not stop to weigh these
stories tuaspg from me e way WAY on [hfy IufOe o"'
II can be said with absolute certainty that trade
f6at si0ns pecem6er forward contracting been
light. for buyers have believed tha{ prices WoILd l
shade off from .he high point reached about De-
cember / But nny man who will take the pains
10 study the monthly statistics VIII Tnd tH4t 4 ai IG
ara tbnt production reached it's maximum about
the fst OF He sn viii ghd nd thSt n wh great deal
new work s held up because or Peher better I'M IN ioWei j
RTIaes RT7Ges 'Taasonabiy busy He viii nd that prac
Jcaly business was done az me pp PrsST ~ % 10
nr II per cent and still be above the level OF last
Uaars VI - average He will find that the foreign de-
gmand is running heavy in every line. and pros
pects that it will further increase The world at
IRON and steel manufactures in every form. Eng
land and Germany have ceanea oo, o9t teT SoA so mi
cirrent prices he will find that advances in labor
serious slump in prices would quickly shut OF
syfncent capacity to restore the market
,rdn ana steel industry is at the toundaton OF
prosperity and 4 II is @ 9aG ia as lG Pe' @ g' S eTe
- "a, Gnsiness conditions are sound throughout the
perity OF the Great West partlculaTy the Iaruaers
metals and on the universal employment OF labo"
prosperous iron and steel trade follows as
coroilary