The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-12-20
THEWEEK1NWALLSTREET
STEEL TRUST AND NORTHERN SE-
CURITIEs MUCH DISCUSSED.
Standard OH Interests Will Object to
Further Public Reports by
Steel Corporation.
special 70 the Indianapolis journal.

Special TO the Indianapolis Journal.
NEW YORK. Dec. 19.-Much has been printed
this week about the economies contemplated
by the United States Steel Corporation. 1t Is
announced that the employees OF this vast con-
Germ. numbering about 5000. will have to ac-
cept wage reductions on the first Of the year
ranging from to 20 per cent The wage con-
tracts now in force contain clause permit
ting the corporation to reduce wages by post
ing notice OF intention three months in ad-
vance Such notices were posted on Oct. l.
Certain contracts with members OF the Anal
gamated Association did not contain that clause
and wages in those cases will continue on the
present basis until July L The employees have
the alternative Of accepting the reductions or
losing employment. The Steel Corporation says
simply that 1T cannot continue to operate its
plants and pay wages at the old rates.
II would be very interesting to know how the
situation is viewed by than 1900 United
States Steel Corporation employees who were
induced to subscribe for the preferred stock at
So. go 1t Is stated in Poor's Manual that nearly
40 900 shares Of the preferred stock was so dis
tributed to the employees. The stock has been
selling this week between 81 and IS. 1t has
sold low 4ex. At SO there is a loss on
the 1900 shares OF stock distributed to the
employees at $3.50 Of nearly s1.575 900. II is
guarantees the employees who hold their stock
for a given number Of years against loss. but
the loss is. nevertheless. apparent and must be
felt by the employees who used their savings
to buy II the terms proposed by George w.
Perkins. the life insurance solicitor whom Mr..
Morgan took into his firm three years ago.
AS previously stated in this correspondence
the Standard Oil influence Is now dominant In
the affairs United States Steel Corpora
tion. The unwiIlingness of the Standard Oil
people to publish reports on any Of their
companies is generally known. The Standard
Oil Company has refused to give information
to the Department of Commerce and Labor at
Washington, and is expected to make test
case of the governments right to exact such
information other corporations have been
| willing to give. 1t is understood now that the
Standard OIL faction in United States Steel
| ing be discontinued. The publicity feature Of
United States Steel is Mr.. Morgan's own idea
| Of what corporation owes to the public. The
| United States steel's quarterly reports have
been marvels OF frankness and were held by
critical financial writers great step for
ward IN corporate management. The publica-
o1 Of full reports bs OF the eesH sy
the public at large. especially by the large
Will be deeply depiored. The Standard Oil peo-
| pie maintain and not without justice that the
Of the corporation to rivals influences buyers
| and subjects the stock to manipulation. 1t is a
porations which do not publish reports OF their
earnings. ETC., have made much better show
tons following the example set by the steel
| trust Notable Instances OF this are the Stand
| ard Oil and American Sugar Refining stocks
| Standard OIL stock has been steadily appreciat-
| ing in value and is now on about the highest
only recently had an upturn In the market.
advancing 10 points. while other industrial
stocks all around 1t were coapsng. The United
States
quarter will be very disappointing to the stock
dends are barely being -" earned. It is possible
| that no report will be made this quarter. II a
| 81 is made it probably will be the last quar-
| terly statement issued by the United States
ance OF reports the stock Is problematical.
XXX
The hearing and arguments in the Northern
Securities case. by the Supreme Court at WASH
ington, this week, did not affect the stock
market to nearly the extent predicted by some
observers. Wall street is not easily excited
over thing that is several months in the
future. and a decision by the United States
Supreme Court will probably not be forthcom-
ing until early In February. The essential ar
gumsnts have all been heard before. Opinion
In the financial community is divided as to the
probabilities OF a favorable decision 1t Is. per-
haps. the more general expectation that the
decision OF the United States Circuit Court OF
Minnesota, adverse to the merger interests,
Will be affirmed by the higher court. Wall street
| Is much chastened in spirit as a result of the
year ago it was confidently believed that de-
cision adverse to the merger interests would
able critics to-day who hold that such a deci-
sion would be blessing in disguise. They be-
| lieve that decision favorable to the Northern
Securities Company would infame POPULAR hos
tility against mergers of all kinds and stimu-
tent Whereas. on the other hand an adverse
decision would allay the feeling that has been
to believe that the Hill Morgan interests have
been preparing for more than a. year for an
ton of the Northern Securities Company, it is
believed that the Erie system will be fitted
gested. even. that the properties held by the
Northern Securities Company be disposed of to
eos The oaon not of the NoThen
ties Company, at all events, would not detract
rsat or fom Pss an aue
| ton still where they were before.
The financial community has been taking
deep interest in the Christmas trade. Reports
| on It published In regular trade reviews
well as In special reports prepared In response
| 70 the demand for minute information on the
subject have been much more optimistic than
! might have been expected. 1t Is admitted that
| there has been some falling Off in the more
| expensive branches but 1t Is said that this
has been fully Offset by the increased demand
| for goods Of medium grade There is a marked
discrepancy however, between these published
! reports and the private information that one
| gets az to the condition Of the Christmas trade
/ The private information Is much less optimistic
| than that which Is published. 1t is the most
/ natural thing Of course. that merchants and
| manufacturers. IN fact all who interested
| In trade, should talk up business for print. It
/ is this attitude that often makes trade reviews
misleading. There is art dealer in New
/ York patronized by the wealthisst people In
| the East. who complains that his Christmas
| business Is the worst for many years. His
| patrons come In. he says. and examine his
offerings praise them and then go away with
| out buying. explaining that times are hard
and that they cannot afford to spend the