The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-07
FINANCIAL AND COMMERCIAL.
TUESDAY. Oct. Q.

TUESDAY. Oct. O.
Prophecies and conjectures regarding
the action Of the directors Of the United
States Steel Corporation in the matter OF
the forthcoming quarterly dividend upon
the Corporations common stock, occupied
the attention Of Wall Street to-day to the
exclusion Of all other concerns. The Cabi-
net tangle in England was held responsible
for depression in the London stock mar
ket which weakened American securities
slightly along with others and caused a
continuation of the selling of stocks here
for London account. Such sales were,
however, OF much smaller volume than
yesterday and were OF little Importance
at best. The weekly Government crop
report, telling of a corn crop that is now
almost wholly out of danger and that be-
cause of the prolonged warmer weather
will unquestiouably be larger than was
popularity expected a month ago, passed
almost unnoticed. Estimates as to the
condition of cotton were favorable and
caused a fall In prices on the Cotton Ex-
change. The Norfolk and Western, South
ern and Missouri Pacific railways made
statements respectively, Of increased
earnings for September Of s156,s78, sis9.-
672 and S773,OOO. The foreign exchange
market was unchanged though the supply
Of cotton bills in the market was notice.
ably greater. Rates Of discount In Ber-
lin and Paris continued the declin-
ing movement which was inaugurated
q week ago and which has now pro-
crossed 80 far as to mako the financial
situation In these capitals comparatively
easy Taken in conjunction with tho fall
in the price Of gold In the London market
to-day, it suggests a very radical change
for the better in English finances especially,
and bears very interestingly on the ques-
ton of gold imports, There were two other
important developments during the day,
but spectators. as is their usual custo ON
after long period Of falling prices, paid
little regard to them. One was the board
offerings of time money at much lower rates
than have previously been made, and the
other, additional data furnished by the
leading bond houses as to the increasing
demand from investors for old and well
established bonds. Exactly similar con-
ditions are reported from Boston. Phila-
delphia and Chicago. All these are matters
of extreme significance and 1t cannot be
doubted that in due time their significance
will be appreciated. But Spectators had
no eyes nor ears for anything to-day except
@the dividend on Steel common" As in
formation on that matter was not afforded
until after the close of the market, business
on the Stock Exchange was throughout
the day exceedingly dull,
Indications as to the probable character
Of the action Of the United States Steel
directors were clearly afforded to ordi-
narily acute Observers before the close OF
the business day by a pronounced upwar!
movement In the price Of the Steel pre-
ferred shares and Of the new sinking fund
per cent bonds. That fact betokened
clearly enough the Judgment Of the market
that the directors would conclude to pay
the common shareholders q fair return
on their investment and yet 80 conserve
the resources Of the Corporation that the
security Of dividends upon the preferred
shares and OF interest upon the bonds
would remain as firmly fixed as ever. 1t
was announced shortly after O'Clock
that the usual quarterly dividend OF Il.
per cent. on the preferred stock and divi-
half the usual rate, upon the common stock
had been declared. This rate on the COM
mon stock, If continued through the year.
would place the stock upon 2 per cent
basis. The Corpora, ions net earnings for
the quarter, earnings for the month of
September being estimated, were stated
as amounting to $32, ao2 ,s2l, as compared
with s38,945, 4s9 for the similar quarter
Of last year. This Is a decrease of
14,642 ,68s. For the nine months of the
year thus far the surplus or undivided
profits Of the Corporation amount to
$40, s4S, 742, as against S34 647 1882 in the first
orders Of the Corporation on hand on the
first of the month were for s,72S,742 TONS
compared with similar orders for 4,s43 OO7
tons on Oct. of last year. 1t must be said
that, considering the practical prostration
of the building industry in this town and
throughout the country On account of strikes
and the various familiar disadvantages
which iron and steel producers have labored
under during the summer, this showing of
the Steel Corporations affairs is very much
better than was expected, Taking into
account the present reduction in the dvi-
dend on the common stock and the saving
In dividend charges on the preferred stock
which will accrue under the bond con-
version plan. it is probable that the net
earnings of the Corporation for the entire
year applicable to dividends will not be
greatly less than they were last year; and it
seems as If argument would hardly be needed
to convince disinterested critics that such
O. result had been good deal more than
discounted in the very heavy fall that has
recently taken place in the price Of the
Corporation s securities.