New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-11
Financial.
The Financial World.

eneCfed a very evenly uStiibNNrN dANdiitN %
between four and five points from the low OF
the previous Monday. SO strong did The mar
kst look at the close. that very good judges
thought IL likely the advance might GO farther
still. What has happened since Is that all the
gain made has been lost. and some stocks are
lower than before: these being the industrisls
Closing prices yesterday in the railroad Est
were Just about what they had been two weeks
before: and the industriais lower. The brrnt
Of the selling during the week fell upon these
latter the railroad list going down IN sym
pathy-except Chicago * Alton. in which there
Is something new on the cards
The cause OF the drop was the report OF the
Steel Corporation setting forth the reasons fo-
reducing the dividend on the common stock.
and the disclosures In the ShipbuiIding case.
The latter was sentimental only. but IT was
horribly effective. All the papers unite IN say
ing that the action Of the Steel Corporation
directors was wise ami praisswOrthy. and just
what she uId have been done: therefore II must
be So Nevertheless. 10 a surprise IN This
way-that opinion generally had been divided
as to whether the dividend would be paid IN
full, passed entirely a compromise had
rot been looked for The price Of the stock had
discounted passing Of the dividend: yet Their.
was rally. because OF that part OF the state
ment showing that the orders on the books
Of the corporation had fallen about % per cent
4 from tne same perlOG last year ms seerle1
/ to be taken as conclusive evidence that the con
clifton Of the iron and steel trade such
that the next conservative action OF tina diTsc-
tors would be to omit the dividend
/ 1t must be confessed that sudden and large
fall in booked orders was disagreeabls sur
prise TO outsiders II largely explained the con-
tinued selling OF the stock The drop Is a5nor-
NAL Probably the labor troubles have the nos,
20 do with it. Had not the almost universal
strikes stopped construction work. and unsettled
allied industries the corporation would hsvs
gone along another year with but a slightly
diminishing trade. Upon calculation that this
is what it would he able to DO. it seemed rsa-
sonabIe to consider the dividend safe for that
period
The securities market first. the metal nlarks.
next are the two markets which respond most
quickly TO changing conditions: and because the
first named starts the earliest. Wall Street. Is
called the only blue spot in the country when
| the change is downward Next comes the metal
market and the Steel Corporations report
shows how sudden. even violent. has been the
decline From this TO other markets: OF. in other
words industries: the disturbance spread The
farmer is most removed from the centre OF dis
turbance and if he has good CrOps-and he has
fairly good ones this year-he IS the least
affected. Up 10 this time he has not been ar
fected at all: and because OF his good crops AID
good prices for them. he is all right for this
crop year-wh.ch is as long any one can ses
ahead.
IL will be noted in the corporation statement
referred to- that il was not because the amount
required for the full dividend has not been
earned. that it was cut down Il had beeD. and
d handsome surplus over. The reduction
made the outlook for the future. on tn
nine months business. the corporation HIS
surplus. after paying everything. OF so-n-thi-E
over 3O millions Such a showing. considering
the extremely disturbed state Of our leading r.
dustries during this period argues well for THE
concern. Furthermore as the falling OF in Or
ders has been abnormalIy large and rapid. r. is
fair 70 assume that something like bed rock
has been reached: just as IN the stock market
prices at last get to a level below which
bad news can force them
However at iris time the public is in sta
Of disgust and the steel stocks are out OF "a
vor Their bulk is so huge that they cannot
be protected in the market. and hence are the
safest things on the list 70 sell short The
common is now down so far that the traders
are inclined 70 let it alone. preferring 70 Turn
their attention 20 the preferred The public
disgust at the Shipbuilding affair was great
OF pOrtunity for them. for II brought our food
of Steel stock and the traders pounded f. They
had the preferred down 70 20 yesterday, and
there is no guessing where 1t will stop going
1t is safe 10 that the last nVe points OectIl7
in the stock was due wholly 20 public indigna-
ton at the Dresser revelations. Mr.. Morgan BE-
ing the biggest target. OF course every shot was
directed at him
There appears. however. 20 be corsidsra-
BILE mix up in the public mind IN relation 20
his share in the business. The idea seems ~
/ be that he had a hand IN getting up the Ship
/ building Company. He had nothing 10 Go with
/ tat least there is nothing in the evidences 50
/ far presented 10 show that he had II was
/ after that concern had been formed that Nor
gan & Co. came on the scene. and then only
as sellers TO the company OF the Bethiehen
/ Steel Works
/ The formation OF the Shipbuilding concern vas
the work. as seems clear from the evidences. o.
Mercantile Trust people and Alexander & Green.
and McCook. They kept under cover. and Dres-
\ ser was captured. with such funds IS he had
/ personally and could command
/ Mr. Schwab had bought the Bethlehem Steel
/ Works as a private speculation, under the ~
preston that he could sell IL at a proht 20 peo-
pie he believed wanted II. But they DID not. ana
/ IL was left on his hands Then Ir. Morgan.
[ fearing there might be trouble and thinking x
was safer 10 have the elephant under his own
control took il for the Steel Corporation to
hold. as he says in his card. till purchaser
| could he found
| Such a purchaser was finally found I'm tH' rsN
/ ShipbuHdfng Company; and the negotiations
attending the transfer Mr.. Dresser told about
| Al this time Mr. Morgan was abroad but he ap-
pears 70 have dictated the actual terms - sals
/ by cable.
All then that Mr.. Morgan had done w 90 tA's
time $50 far as is in evidence> was 70 very -