The Washington times., 1901-10-07
STOCK MARKET COMMENT.
Belief That the Insiders Are E.
ing Stocks from the Public.
Disgust and DIsmay Over the Weak
ness Of the Iudu-trini- Leads to
General Realizing by Small Hold
ers-Copper and Steel Methods

of the Indu-trinI- Leads to
General Realizing by Small Hold
ers-Copper and steel Methods.
NEW YORK. Oct 6.-The most striking
features of the week just closed I'm Wall
Street have been the continued weakness
OF the industrial securities and the lack OF
confidence which the public seems to feel
in the investment value of this cinss OF
stock. While various causes have brought
about this condition, there is little doubt
that the recent couI Sc OF the insiders in
Amalgamated Copper has been mainly
responsible. The methods of these spon-
sors for the great property which was
supposed to have the protection and sup
port Of the Standard OIL group Of million
aires, have been so inscriptions. accord
ing to the investment authorities in Wall
Street. that the public has become thor
oughly alarmed and has thrown its hold
ings on the market so pTecipitatoly as to
thoroughly demoralize values. The losses
in Amalgamated Copper have weakened
the market position of number of
other stocks because Of the forced lqui-
daticn which resulted from the resdjust-
ments of loans.
1t is not believed that there has been
much selling Of long stock. except by the
public. The Standard Oil people have sold.
but, as far as can be learned, only in one
or two securities. and it is not IL the least
certain that they have not bought as
much or more than they sold. The question
who has been the buyer of stocks natur-
ally becomes a most important one. There
are reasons to believe that the big inside
interests are still the buyers. Some au
thorities go so far as to say that Mr..
l.
of stocks now. If this theory IS correct
1t is evident that the insiders still look for
a bull market some time later. This, in
fact, is now the chief argument of the
optimists,
The copper situation is still causing
great perplexity not only among the pub
lie but in the copper trade, which is dom
mated to great extent by the Amalga-
mated Copper Company. The public is
not inclined to accept the statements be-
Ing issued from time TO time by the trust
as rejecting the actual conditions exist
ing in The trade. 1t has been deceived
so often that It questions the good faith
of those who are responsible for the vari- |
Gus reports which emanate from the in
side. One Of the best authorities in Wall
Street thus explains the declines of yes
terGay:
THE decline in Amalgamated Copper
was on reports that there would be a
reduction in the price Of copper within |
few days. This report could not be
Amalgamated looked significant.
"A reduction in the price of copper |
may be regarded in one or two ways. If
there is small cut in the price it will
be taken to mean that the Amalgamated
Company has changed its opinion as to
the relation of supply and demand in the
copper trade. 1t is more or less of an
open secret that for many months there
was general understanding between the
great producers of copper in this country
in regard TO the maintenance of a fixed
price. There came a time when one Of
these interests believed that there should
be reduction in the price of copper
The Amalgamated management thought
reduction not necessary. Later It was de-
cided that the different producers could
reduce the price or not as they pleased |
and this has led to the quoting of differ |
ent prices by different producers. For the |
United Metals Company to lower the price |
of copper half a cent a pound would be |
Insignificant from a speculative stand |
point, but should the Amalgamated Com
pany make an important reduction, such
as has been talked about, or cents
pound. it would be regarded as meaning
a definite policy toward some other in
terest, probably with the intent of bring
ing about some important result in the
copper trade or elsewhere. Hence an i'm
portant change in the price of copper at
this time would be regarded as specula-
lively significant, while small change
would not be-
The policy of the United States Steel
Corporation has been in striking contrast
to that OF the Anlalgamated Copper
Company and has made many new
friends for the securities of the former
company among people who had doubted
the wisdom of combining the various
properties under the Morgan plan. as well
as the ability of the great corporation TO
earn dividends on its enormous capi- |
tsliZation. The showing of the company |
is a distinct triumph for Mr.. Morgan, |
while the policy Of cdndor adopted by the |
directors reflects great credit upon the |
fnancier, whose achievements have been |
marked always by fair dealing and hon |
orabie methods. There appears to be lit |
tie doubt that in normal times the United /
States Steel Corporation will be able to |
earn its present dividends on the common
stock. while the preferred stock will now
take its place among the reasonably safe
investment securities dealt in on the
stock exchange.
The money situation. while not so en-
couraging as 1t was week ago. is not |
regarded as in any degree alarming. |
though there is a probability of higher |
rates during the next six weeks The |
drain on the banks from the West and |
Southwest still continues heavy, and the
effect Of the Government bond purchases
and interest payments will not be felt
after the present week. although they
prevented a very bad showing yesterday.
While yesterdays bank statement is
not quite as good as was expected, ii is
still highly satisfactory.