The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-09
FINANCIAL AND COMMERCIAL.
THURSDAY, Oct. 8.


future prospects of the iron and steel bust
ness and of the metal trade generally, a
| gathering Of war vessels in Corean waters
| which seemed to be ominous of strained
| relations between Russia and Japan; re-
newed heavy selling OF Amalgamated
| Copper and the publication of the testimony
taken in The proceedings brought TO secure
the appointment of n permanent receiver
| for the United States Shipbuilding Com
| pany unsettled the stock market to-day
| OF all these troubling influences, the one
last named was the most effective, or, at
least, It caused more dscr ssion in Wall
Street than did anything else. Its charac-
ter for evil consisted not in any new reve-
ation of the heavy overcapitalizaton OF
the United States Shipbuilding Company
and of the methods employed by the original
promoters of the concern, for these are
matters with which the public has long
been familiar, but in its imputation of con-
duct on The part OF one of our most promi-
nent banking houses in dealings growing
out of the organization Of the company
that could hardly be called consistent with
high standards of banking or business
honor. As magnfied and distorted, after
the usual fashion OF Wall Street on such
occasions, the matter was popularity
represented as one that could not
fail further to weaken public confidence
now not at all too strong, in the Sc
curity market The testimony was. in
brief, that the Bethlehem Steel Company
one of the chief plants in the proposed
new ganzation, having been taken over
at a very high valuation, the banking house
in question received for its services in the
transaction a bonus Of 5000 600 in the
common and preferred stock OF the new
company and demanded that an agree
ment should be made as to the sale of the
securities OF the new concern by which
the stock received by the banking house
should be sold first. j. p. Morgan Il
Co., the bankers named issued formal
statement denying that they had ever
had any connection with the inception or
financing of the United States Shipbuild-
ing Company and that they only held the
Bethlehem Steel Company's stock as man
ayers Of the United States Steel Corpora
ton syndicate They transferred II to the
United States Shipbuiding Company at
cost, taking s., 500 900 each of the preferred
and common stock in lieu of interest and
sale for S75OOO They denied that they
had ever been party to any agreement
for selling the stock in the manner de-
scribed
This full and clear statement of J. p.
Morgan i Co., which was not circu-
lated in Wall Street. however, until just
before the close of the stock market, and
so had no influence upon prizes, obviously
disclcses the true nature of the ransact ions
of the firm with the United States Ship
building Company and relieves them from
the slightest shadow of improper dealing
in the matter. II IL perfectly well known
in financial circles that the firm, acting as
manager of the Steel syndicate, held in
trust tho stock Of the Bethlehem Steel
Company for Mr.. Schwab. the then presi-
dent of the United ~ ates Steel Corporation,
because II was not thought proper hat
Mr.. Schwah, while at the head Of the oor-
poration, should possess as his private
property such large rival enterprise.
They transferred It to the United States
Shipbuilding Company in consideration Of
the exec sum that had previously been
paid for ii, and turned over TO the Steel
syndicate the SIS 900, which were the meagre
avas OF sale Of the much Wanted s., OO0, :
900 in the stock of the bodybuilding COM
pany. The denial of J. p. Morgan 4
Co, that they were at any time part les
70 any secret agreement for the sale OF
the stock will be accepted as conclusive by
every intelligent person in the banking and
financial world.
The sales of Amalgamated Copper to-day
plainly reflected the popular conviction
that, as an industrial stock paying but
4 per cent dividends. its present price is
too high especially in view of the known
weakness in the raw copper market and of
the distinct slackening of copper manu-
featuring business. A rather marked de
cline for reasons more or ess allied to
those Just stated, occurred in General
Electric. American Sugar Refining was
also. unusually weak, as was Consolidated
Gas in fact, the entire industrial list The
general news of the day was unimportant
apart from the rather threatening outlook
of political affairs in the Orient and weekly
return of the financial condition Of the
than had been expected. Late in the after
noon the pamphlet report Of the Interurban
ST rect Railway Company, the lessee of the
Metropolitan Street Railway System, APP
peared for the year ended June 30 The
feature of the document is the exact, ninute
and complete details afforded by the con-
tents Of the financial and mechanical opera
lions on the system. The report Is. in fact
one of the most particularized showing.
of the kind that have eva been put forth
by any railway company, and it is under
stood to be the intention of the Interurban
company TO make all their annual report1
in future rs detailed rs the one Just issued
In yestors will be Interested in view of the
malignant and totally ,infounded state
ments regarding the earnings Of the com
PAW that have circulated in the financial
district during the past year. in the revela-
ton of ne fact that the gross earnings of
the entire system for the year showed an
increase Of $els37743 over last year, despite
the extraordinary difficulties In the way of
the operation of the surface railway lines
caused by the construction of the new sub
wav. Moreover, despite he large advances
in wages and the high prices compulsorily
paid for fuel and all materials and supplies
the surplus Of the earnings Of the Metro
politan Street Railway proper fell only
$3.50, 442 As short Of the sum necessary for
the payment Of tine dividend of per cent
upon its stock IA guaranteed by the Inter.
urban street Railway Company.
New York Stock Exchange Sales, Oct. r.