The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-10-11

reduction is generally conceded by disin-
terested financial critics. But this COM
mendation carries with II criticism OF
having entered upon dividend payments IN
the first place. in view OF the enlarged
outlay ahead. The wisdom Of the reduction
is predicated upon an admission or the 1act,
also that declining demand for iron ana
steel Is to be faced. The implications TO De
drawn from this prospect proved or SO us
turbing character as TO throw senument
Into depression again. Iron ana steer aS
a barometer of general trade condltions
have high authority in Wall street, anu
the proportions of the reaction In that mar
het thus reduced to statistics made deep
impression. The dread OF general trace
reaction is thus aggravated. Stocks OF
companies in the metal industries were
most Immediately affected in some parucu-
lar, especially Amalgamated Copper and the
railroad equipment companies. But no part
Of the list escaped the influence OF the de-
preston.
SHRINKAGE IN STEEL STOCKS.
The enormous market shrinkage in the
steel stocks and the final outcome in the
dividend reduction gives rise TO disgruntled
complaint of the original dividend payments
as bearing on stock market exigencies as
much financial policy. This spirit OF
irritation over conditions of promotion and
flotation is enormously aggravated by the
disclosures contained in the testimony in
relation to the United States shipbuilding
DdScO. Inc tone OF mucn OF the tiiSCuSSiou
in the neighborhood of the Stock Exchange
during the past week has been OF a bitter
ness and scope that Wall street heretofore
has regarded as narrow and preJudieed
when coming from outside sources. Heavy
overcapitalZation of corporations is one OF
the least heinous of1enseS found In the list
laid at the doors of the leaders of the great
imitation OF the last few years.
False representations of values and earn
ing power, reckless diversion of credits OF
, institutions to promotions purposes ana
secret pooling agreements to assure the
first market for the securities of insiders
under manipulation of paid market man
/ ayers are some of the incidents brought
within the range of charges. The result has
been feeling of profound distrust amongst
the whole class of shareholders in new IN
| dustrial securities and suspicion of motives
| and methods in quarters which have been
| followed with unmixed confidence The
| force of these considerations has been suf-
| ficient to overcome any favorable factors
| in the situation. The dread of money strin-
| gency has definitely passed away and q
| growing activity in the market for mercan-
tile paper has followed, relieving any fears
of contraction of supplies for regular COM
| mercial purposes. Borrowers who have
supplied themselves with extra funds in
fear of stringency find their precautions
| unneeded and are reloaning, thus relaxing
| the extra demand and leading TO freer Of
/ ferings by regular lenders. The progress
| of the crops has been favorable and freer
| movement of grain has been reflected in the
/ traffic reports of the great railroads and in
the supplies in the exchange market. Rail-
| road earnings show decisive increase In the
| net return in spite of the large increases In
expenditures, largely due to higher wages
according to the showing in the annual re-
| ports of a number of railroad presidents
/ These factors have only availed partly &c
| offset the feeling of disapproval with which
| the incidents in the promotion field are
| viewed.
| The bond market has reflected the grow
| ing ease in the money market in some re-
! vival of investment demand for a good
|
| twos, threes and old fours declined " pei
cent each from the closing bid of last week
| Following are Saturdays share sales and
| the recorded price changes: