The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-08
FINANCIAL AND COMMERCIAL.
WEDNESDAY, Oct.


WEDNESDAY, Oct. 7.
Nothing but praise to-day was heard
among fnanciers regarding the action
Of the directors OF the United States Steel
Corporation yesterday in courageously re-
ducing the dividend on the common stock
Of the corporation In view OF existing cir
cumstances; and commentator was as
loud on the other side Of the Atlantic as
it was here. The .unanimty with which
the directors came to the decision demon
strated the absurdity OF the stories that
have recently been circulated that there
was a marked differences Of opinion in the
board over the matter, that one great
financial interest was at swords points
with another because of IL, and that simply
because of pride the directors would hesi-
tate to take step that was demanded by
the most obvious business considerations.
Study Of the report of the quarters BUSH
ness of the corporation revealed the fact.
too, that there had been altogether too
great pessimism in Wall Street over con-
ditions in the iron and steel trade. There
is visible slowing down there OF the ex-
ceedingly rapid rate at which business
has been proceedings rate which no
body but very foolish persons expected
would be continued-but this event is very
far from meaning that the profits Of the
iron and steel business are entirely to
disappear, or that, indeed. there is not
every prospect that they will be really
large for an indefinite time. The net
result OF all this could have hardly
failed to affect to-day's security market
favorably. All American stocks were
higher in London. chiefly. according to
private cables received here by banking
interests, because Of the action taken on
the Steel dividend. and London was steady
buyer of stocks here during the time de-
voted to arbitrage transactions. Open
ing prices for the Steel preferred shares
and sinking fund bonds, a. well as for the
general list Of securities, were at good ad-
vanoes over the closing figures Of yesterday.
though the Steel common shares were lower.
Prices advanced and receded alternately
for time, but closed strong and active,
with good net advances for the day In
most cases. It was the common opinion
that had It not been for fall IN Amalga-
mated Copper. which carried the price Of
that stock down three points, the days
market would have bean the strongest
seen for many days, and the failure Of the
market to give way In sympathy with the
break in copper was generally. and no doubt
rightly, taken as q proof that the financial
situation had taken on new vigor. The
recession in the copper shares was ex-
planned by many as an attempt to unsettle
the market so a. to allow the buying IN
of short contracts; 1t looked, however.
more than anything else like genuine liquida-
ton Of the pool holdings acquired IN tho
advance tho prioe Of tho shares In tho face
Of reoeding quotations for copper metal.
To most observers Amalgamated Copper
at tts present price and dividend ratio and
under ruling conditions In the raw copper
market does not look very cheap, and there
Is little intrinsic reason why Q reduction
In tho quoted values Of it, sharss should
have any widespread influence elsewhere.
Tho only stocks that did suffer 70 any az
tent to-day BY reason Of tho weakness In
copper were those Of suoh allisd properties
a. tho General Electric and American smelt-
Ing and Refining companies.
Exchange to-day IVES tho Increasing
which, IL Is needless to say, s an extremely
significant occurrence. It's immediate m
citing cause has been. no doubt. tho easier
tendency Of rates for the use Of money
for long periods and the conviction which
Is now general among large interests that
there will be no money strhgency that
will bear desori ption as such this fan. When
It b realized, however, that not since last
spring has the public manifested a desire
to buy bonds Of any sort. the evidences Of
such desirs, a. they have been Increasingly
witnessed in the last few days. indicate
q return, even II slow. Of that public con-
senoe has been 30 long lamented. Almost
the first Transaction on the Stock Exchange
to-day was the sale Of 100 Of the first mort
gage Per cent. bonds OF the Union Pacific
Railway Company at an advanced quota
ton, Transaction which would have at
tracted attention al any time. Similarly.
later In the day there was heavy buying Of
the Chicago, Burlington and Quincy u,
Chicago, Rock Island and Pacific a, Eric
general mortgage liens, Southern Railway
So, Union Pacific convertible As and the
new United States Steel sinking fund e..
Indeed. practically every quarter OF the
bond list except that devoted to the new
and speculative issues was strong II IL
to note that practically the same
tendGcies a. those Just specified are now
visible In the English Investment market
swell a. tn our own. Cables tell Of larger
demand ON the London Stock Exchange
for securities Of the investment class than
has been Witnessed for months. OF no
less importance In q financial way are
similar Developments In the mercantile
world regarding tho rates for commercial
paper. The trend Of the market for obligs-
tons Of this kind e now as distinctly III
d vor Of borrowers - few weeks ago IL
: a. aginst them.
Advioee from the.pig iron market are Of
a IL TO- tone than has recently prevailed and
I'M , Alto decided mwillingness ON the part
Of sellers Of the commodity to make further
outs In the list prices that have been estab-
lished. Our banks have gained 81 $50 900
In their transactions with the SUBJ Treasury
this week. and, indeed, the monetary situ-
alton is but little discussed In Wall Street.
The annual reports OF the Louisville and
Nashville and Erie railways, just made
public, are very interesting. Operations Of
the Louisville and Nashville for the year
resulted In surplus after charges OF
SO, 211 ,048, equal to 10 IS per cent. on the