New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-09-13
Financial
The Financial World

( active market but In one which Ia. - W
INTO the depths OF duness. Il assr-,os ,--ppea
lance There does not appear 70 he 49,. ., ,D
tnan the operations Of traders noel -
was referred to last Sunday. Points =, -
stock came earliest from the Rock Ivfa,a o--'- IS
tuesday last there were over 100OeO -.
done. the price rose a couple OF points 70 e0,1
Auu 'fat marked the TOP for the tine :.
closed yesterday at 6,jS Meantime tLo
nuai report has been issued. showing ea~n,---
OF about per cent on the stock; but tbi. IS
must be cut down to 5ls by the pavi,, -. .,'a
debenture bonds. The report as a yvboro a.
isfactOry. and the figures OF both gross -, az
earnings about what President RfnIev a. -.
said they would be. The company IS babf,4 80
previous year in net. some 81 3OOOOO -
considerable proportion OF this loss is sst a.
TO the great food damage the Atchiso, -
one or the severest sufferers on the fac. ga
there was fair reason IN the report FOR as,-,-s
ing the price Of the stock
Both the corn and cotton reports corf, =
construed as bullish for this particular -
since they showed good conditions In ia -
tory The corn report. issued THURSDAY =
criticised on the same grounds as the 60
report Tad been; namely. that the general -
centage was made high by high percen,ars. a.
the states which produce little or no r,-,t..'
while the condition in the surplus produc,,,
states was low. Il may be said that in resp...
to the final outcome Of the crop. Wall s,r..,
has about made 10 its mind that come ~.
may. short cf a frost Of unusual extent srs
severity. we shall get a yield Of abou, Doc,
million bushels; n little less rather than no-,
Assuming that corn and cotton really w..
out fair average CROPS. which we ara -
justified now in assuming they will. after H.
Ing some loss by frost on late or the no-.,
favorable plantings-what VIII be the e-A., -
the stock market? Favorable of sou-,,. a.
could not be otherwise: and IL mOnetarv eo,s
tons were not as they are. a considsaNe a.
vance from the present level OF prices wor,a
be nearly a certainty. at least for many o.th~.
stocks. Union Pacific. for example ought wss
seen at par again But here Is the dIrcu,v
and Union Pacific may be selected as reor,.
sentative: ii pays 4 per cent while tine mopsv
over the year IS 50 to s per cent The ssrs
applies 20 other stocks. according 10 their urs-
ent price and dividend paying power wesn
not in hurry going to get back 70 the cond.
lions presented in the spring. before the grea,
breaks In the market. when it was ! per car,
stocks and per cent money. That was ths
sign and forerunner Of a coming change-efther
money had to come down or stocks had Money
did not and stocks did. II will not be forzottes
money had no such signi1cance-things ws0
different this time to what they had been before
Nevertheless. cause and effect worked them
selves out as usual in the first half Of the year
and they will continue to do so for The last haf
that is. prices OF securities will be dominated
by the price OF money
The selling Of the Steel stocks was something
near sensation. In the preferred comparative
~ little vas done the real force OF the blow fell
on the common. which was forced down to 20
The heavy drive came after the stock was
quoted ex-Giyidend-the last that would be paid,
it was asserted by the bears. At 20. the stock
is selling actually below the price OF mOstN
what may be called the permanent non divides
payers of the list. Yet there Is nothing in he
annual report Of the eompany-one OF the moG
comprehensive ever issued-to Indicate an n
ability on the part OF the company 70 confirms
the dividends.
We all know that the price OF iron IS filling
the standard brand falling from $3.50 per ton
in March. to SIS per ten now; and we know that
If the company earned much this fiscal year
as il earned last. it would be little short Of a
miracle. That the earnings would auctuais
from year TO year was just as much expected
Of this corporation as Of any other Industrial
concern The real question IS what they are
Fat years shall give surplus enough TO carry the
lean years.
As bearing on this question. in respect to me
iron and steel trade. II may be recalled that
some years ago. Barring. NIagoun & Co. oIered
for subscription SJ.COO,COO stock Of the PARK
Steel Company; and IN the prospectus. taole
was given showing the annual earnings OF tns
company for ten years previous on this S0'OVV'-
COO The amount varied from 10 per cent !"
25z per cent: while the average for the ten years
was per cent Now 10 viii be easily seen ula'
when the company was earning that - per CENT
steel was as Mr.. Carnegie put II, Ans' wHs1
the osz per cent. II was a pauper. On the ~no0
neriod however. II was a respectable ineoms
Garner. neither king nor pauper AppNFns u--
to the L. S Steel Corporation. and aAo""s
that this is Il year (GscaD when salniAss
will decrease. it should yet be tnat -
corporation can contiBus It's divldsnu
ways provided, and THIS Is the test quesIOl'
that Mr.. Morgan has not made Colossal ''-"
der in his capitalization. and created an siiouN
Of stock beyond the capacity Of the corpofa-o
to nav dividends upon except IN the fushes' OF
flush times II he has done this. ana on 80
colossal scale. that Is to say 500 Millions tnsn
his reputation as the greatest nnahc'er %
age. Is in serious jeopardy.
As above said. the price OF iron Is faiins'
which the late Jay Gould used 10 say was ~
time TO buy stocks: and it was also SAID M
the price Of securities would be domina'el =,
the price OF money. Iron IS the recoshi17N
barometer OF Industrial conditions; and no Hl1--
with business capacity above running peA"--
stand. viii contend that the price OF money .
represented in this discount Of eormerciA4
per. has not a dominant Influence on 'rSa1
Now iron declining. and silt edged paper ~
counting at to 81 per cent mot easily even
that. II might be supposed that danger sis"a-9
so plain Of sight. would be seen Of sveryoooy.
Nevertheless. the pointing out that sucn slsna-'