New-York tribune., 1903-04-09
BONDS.
THE DAYS OPERATIONS IN STOCKS.

THE DAYS OPERATIONS IN STOCKS.
While the stock market exhibited irregularity
in the movement Of values there was an un-
DERIVING tone of strength that was responsible
sor small net gains in the greater number of
active issues Efforts made in the early
dealings to reduce values by selling United
States Steel shares. but there no important
response and even in the steel stocks fractional
recessions were the best that could be accom-
xlished. Although traders thought that COM
mission houses would be heavy sellers Of the
United States Steel securities. because OF the
falling off in net earnings in the last
quarter compared with the correspond
ing time last year extensive liquidation
developed and sales when made were taken
by a good class Of buyers. The steel and
iron business is not declining, but deliveries
have been checked by the ina ability Of the rail-
roads successfully handle the enormous vol
urne Of traffic offered. This situation is rapidly
improving, owing TO the constant addition to
rolling stock on orders placed many months ago.
People who reach hasty conclusions see in the
decrease in the United States Steel Corporations
quarterly earnings a turn in the tide Of indus
trial prosperity. but observers who make more
than superficial examination OF conditions
find absolutely warrant for the belief that
the wave OF business &C svity is receding. On
the contrary. they contend that expansion will
continue for long time to come.
Southern Pacific stock was in fair demand.
The life Of the pool in this issue viii not be
extended. but serious trouble is looked for in
the winding up OF the speculation, it is gen
orally believed that members viii not throw
their holdings on the market, as 20 do so would
mean heavy losses on the original purchase. It
may be years before Southern Pacific
shareholders receive a dividend. but before divi-
den6s are hegun the stock viii doubtless gradu-
ally work higher. selling near par when pay
ments begin Foreign houses bought Southern
Pacific IL yesterdays market Manhattan was
in good demand for investment account and
higher prices were predicted. Compared with
o-Her and Z per cent stocks Manhattan IS
cheap. especially as il is guaranteed issue.
Consolidated Gas was strong. buying doubt
less being due to the company's published ar
gunaent against municipal ownership of gas
and electric plants. The market closed without
animation in any department. Total dealings
were not far above the low record of the year.
The bugaboo OF undigested securities contira-
ues 70 influence sentiment among poorly in
formed people. but III circles where facts are
considered rather than fancies the question IS
beginning to be looked on in the same light
viewed by Air- Morgan in his recent discus
sion Of the situation. There are fewer undi-
gested securities to-day than there we're a year
ago. and absorption is going on at satisfac-
tory rate, despite the compartive duness IN
the open market An instance Of the steady
absorption Of securities by investors IS re-
17ected in the increase in the number CT stock
holders OF the United States Steel Corporation
.n the last year from 1900 10 5s,629. OF
course, large amounts of new securities which
represent value and not water still being
carried by temporary syndicates. but from pres
ent indications an active investment demand
for these issues will soon develop Foreign in
vestors are buying in this market. Within the
last month large blocks cs American railroad
bonds have been placed abroad by local bank
:ng houses while sentiment in Europe on
securities is growing more bush every day.
this information coming from heads of interna-
tional banking firms who we'll posted re
garding the condition Of investment sentiment
pn the other side. Local opinion stocks is
Inixed but the best observers and the most con-
sarvetive interests confident that the pres
.srt period of uncertainty in the market will
a-e succeeded by q wave OF activity and rising
-~lues.
The annual report Of the United States Steel
Corporation is a notable contribution to
rent literature descriptive Of American indus
trial activity. It is hard TO conceive Of a con-
ce-n that can Go a business in one year Of
$500 51O4T9 and show q surplus. after all
charges and dividends of S34.253, ,651; yet this
IS the record fo~ the big steel company in 1902.
The company charged off from net earnings
S24 IA 3S9 Cor depreciation and sinking funds;
- paid SIS 227 $50 in interest bonds and
sinking funds for bonds; IL distributed in divi-
derds S56.052, ,S67. and expended for mainte-
nance renewals and extraordinary requirements
500 49, 0l0 People who railing against the
rri,sts and combinations viii learn many things
which they apparently do not now know by
carefully studying the report OF the United
States Steel Corporation. They will find. for in
stance that the concern employed last year
l6S l21 men while It paid out in salaries and
wages S12o 52s 333. or more than double the
amount paid out in dividends TO stockholders.
And they will also find that the employees are
so well satisfied with the United States Steel
Corpora ation that 27.379 OF their number
preferred stock holders. Although the net earn
tngs in the last quarter were lighter than in
the same time in 1902 owing to the congestion
OF the railroads. the company has more orders
on hand than before recorded contracts
being about one million tons in OF this
time year ago In many Of the classes Of
heavier products, such rails and structural
rraaterisl practically the entire capacity Of the
mills is sold Up until the end Of the current
wear II will require q long period OF extraor-
dfuary trade depression 10 cut down the earn
Sings Of the United States Steel Corporation
!. r,o,nr that will affect dividend returns. The
common stock which now yields about II per
} a r.