The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-09-19
The Business Situation.

The Business Situation.
This has been another discouraging
week for holders Of securities and for the
bulls in the stock market Prices nave
been shrinking again. Despite the con-
tinued heavy sag Of months and months,
despite the fact that since the great de-
cline began, many stocks have lost thirty
forty, sixty points. despite the temporary
upturns and the assurances and reassur-
ances Of financial prophets that stocks
would not go lower, it was demonstrated
that even yet the bottom had not been
touched and in some leading stocks new
low points were again recorded. If there
IS any hopefulness in Wall street 1t IS
hard to find. Many small investors, to
be sure, came In some time ago and
bought the good dividend paying stocks
at bargain prices, and this small lot In
vestment buying is still a feature. But
of the old-time speculative activity there
is no trace, and all Wall street has finally
settled into realization Of the futility OF
trying to revive speculative interest until
the market has had prolonged rest.
Meanwhile there is much heard of the
companies wrecked in the great deflation
Just how demoralized the situation is may
be judged from the accounts of two for
mer favorites, now suspended by the con
servatives and given over to the bears
International Mercantile Marine is quoted
now at about IA. When the preferred
of hi xUhi we +
work wonders in ocean transportation
first came on the market backed by thu
prestige Of the great Morgan name, the!
were quoted, at Is. The common stool
was bought and sold around 35, and
Judged by the statements in the glowing
prospectus, was destined eventually tt
reach par. To-day it is quoted about 31s
OF all the fizzles that marked the CLOSING
period of the great craze for combina
ton and consolidation this was perhap
the worst, yet the scheme had back Of
the greatest names in Wall street. Stee
common, another Morgan exploitation, o
which there are something over 100000
shares, has sold down to II, and is he'll
to some extent by small investors, man
of whom paid as high as SO for it. Ye
the next quarterly dividend of l per cen
on Steel common will be duly paid, Q
at least there is as yet nothing official t
the contrary. ua#
1t is doubtful If the street has eve
witnessed greater incongruity than tn
payment of per cent per annum in div
dends on a stock worth nominally SIC
and selling in the open market for 81
and so absurd has this appeared that til
passing Of the dividend has been locke
for but to date there~is nothing to ind
cate that the company proposes to dix
continue it.
This, one illustration gives better ide
of the situation than could columns
description and while the steel stocks a.
the extreme case, the same dispositic
so manifest in their treatment is seen
less degree in many other stocks. AS
the loss Of prestige by the former maste
of the street, it Is so great as to be ma
ter for comment the world over. Ono
when the great organizers spoke, MT
rushed in with their money and fought f
the opportunity to subscribe to new We
lures. Now the securities Of the con
panies for which the underwriting synd
Gates were largely over subscribed, a
Kicked about the street.
During the week it developed that t
labor outlook in the steel industry is
substantiated rumor had it that redu
ton in the wage scale has been talked
by the steel corporation management, al
report more nearly authenticated was r
ceived to the effect that some Of the m
in. the great Duquesne works at Pitt
burg may be temporarily out Of work,
new business in steel is running lightt
Whether the bears have magnified the
reports for effect Is a question. It
general belief, however, that the crest
the wave has been turned in the steel /
dustry.
Over the west and northwest the we
has been one, Of comparative quiet and
moderate business in many lines. d
tribution of merchandise thru the count
has been light, and taking the northwt
as a whole, there is nothing very graft
= "a e. + s F.
ing. This great difference must be mote
however, that while conditions spoken
above as affecting the east have rul
for time and in the opinion of ma
are likely to continue, the lighter volu,
of business in the more legitimate trs
I of the west and northwest is tempora
A week of moderate business is shown
a result Of the remarkably bad wealth
which, having past, still leaves its eff
behind. The country is already pre-
well dried out, roads are improving, q
the coming week, in all probability, '
make up in full for the past There is
business ahead for the railroads Of
west.
The monetary situation shows no
portant changes. The west has plenty