The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-10-11
STOCKS ARE in
POOR DEMAND
Steel Preferred Forced Down
2 7-8, TO So.
SOME SUPPORT FOR COPPER
GENERAL FEELING OF DEPREs-
SION AND GLOOM.
SOME SUPPORT FOR COPPER

New York, Oct 1O.-Demand for
stocks was apathetic today, ana left
the market vulperabIe TO very light sell
ing, and there seemed,to be a profess
sionaI contest in the late dealings The
party Of reaction centered their attack
on United States Steel preferred, fore
ing il down rs, to SO. This stock sold
at $3.50 last month, but otherwiss never
sold before as low as tOday's price. The
part| favoring support in the market
seemed most active in Amalgamated
Copper. That stock resisted the gen.
eral depression, and was marked up at
one time IA over last night. There was
some systematic buying also Of Chicago
& Alton.
The contest was wholly professional
and not based on any news so far as
known. London helped the depression
here somewhat and sold stocks mod
erately. Fears are entertained there
that next weeks stock exchange settle
ment may uncover some embarrass-
ment. The tone of the weekly trade
reviews was somewhat conservative
and reflected the state of doubt which
has been caused by the reduction in
United States Steel dividends and the
decline in profits in the iron and steel
industries. The reports of weekly bank
clearings show sharp cOntractiOns Ss
whole compared with the correspond
ing week Of last year. But in the an
alysis it is found that the decrease is
wholly due to shrinkage in New York,
Boston and Philadelphia. the four other
leading cities showing considerable in
creases, and the average for all other
cities a small increase. The market
seemed encouraged by the bank state
ment, and rallied mOmentarily. The
increase in cash was considerable larger
than expected. But the statement IS
so complicated by the merger opera
tiOns Of the National Bank of Com
merce and the Western National as To
throw it out of balance. 1t is inferred
from the small loan change that COM
mercial borrowing has kept pretty
steady pace with the liquidation on the
stock market. The market closed easy
and quite active.
Review of the Week.
Developments during the week have
resulted in a new Outpouring Of secUri-
ties on the market and an almost entire
paralysis of demand for the stocks most
largely. pressed for sale The effect has
been a renewal Of the feeling of depres-
sion and gloom which always gathers
over Wall street in period of declin-
ing prices. The liquidation has been of
a most different character from that of
the recent past, whis was manifesuy
forced by financial necessities due to
the failure to find a market for many
o. the new. securities formed out of re-
cent promotion projects. This week
the selling is attributed to distrUst on
the part OF the holders over the indus
trial outlook and over the future earn.
/ ing power Of shares interpretations.
There has been an occasional account
liQuidated which seemed to be caused
By the maturing Of loan on which ex-
tension could not be had and for which
the collateral therefor came upon the.
market.
But the prevailing topic in Wall street
has been the irritation and disgust of
shareholders over the developments re-
garding the properties in which they
have embarked their money. leading
them to abandon hope Of better condi-
/ tons and to throw over their holdings
for what they would bring. The reduc-
/ tion Of the dividend on United States
Steel from a per cent to a per cent
I basis was the first of these develop
ments The long downward course Of
this stock in the market seemed a sufi-
cient intimatiOn of what was to come.
But the fact remains that a common
expectation in speculative circles was
D
( the retention of the dividend involved
a policy connected with the formation
of the corporation which would not be
departed from while funds We're avail
able for the distribution. The wisdom
Of this policy came in for criticism
when the corporation announced its
bond issue and the necessity for in
creased working capital which prompt
ed the bond issue. In view of the par
70 E 81.
marked decline reported in the rate of
net. earnings and the heavy decrease in
the untitled orders on hand compared
with last years corresponding quarter
" statement the wisdom of the present
dividend reduction is generally con-
coded by disinterested financial critics.
Caustic Criticism.
But this commentator carries with
it a criticism Of having entered upon
dividend payments in the first place, in
view of the enlarged outlay ahead. The
wisdom Of the reductiOn-is predicted
upon an admission of the fact also that
a declining demand for iron and steel
! is to be faced. The implications to be
drawn from this prospect proved of so
disturbing a character as to throw SEN
timent into depression again. Iron AMI
steel as a barometer of general trade
conditions have a high authority in
Wall street, and the proportions of the
reaction in that market thus reduced to
statistics made a deep impression The
dread Of general trade reaction is thus
aggravated. Stocks of companies in
the metal industries were most imme-
diately affected in sympathy. especially
Amalgamated Copper and the railroad
equipment companies. But no part Of
the list escaped the influence Of the de-
preston.
The enormous market shrinkage in
the steel securities and the final out
come in the dividend reduction gives
rise to disgruntled complaint of the
! original dividend payments as bearing
on stock market exigencles as much as
on financial policy. This spirit OF irri-
tation over conditions of promotion ard
Notation is enormously aggravated by
the disclosures contained in the testi-
mOny in regard TO the United States
ship building fiasco. The tone of mucn
of the discussion in the neighborhood of
the stock exchange during the past
week has been Of a bitterness and scope
that Wall street heretofore has regard
ed as narrow and prejudiced when com
! Ing from outside sources. Heavy over
/ capitalization Of corporations is one Of
the least heinOUs Offenses found in the
list laid at the doors of the leaders of
the great infiatiOn of the last few years.