New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-15
Financial.
The Financial World.

I sylvania I'm che latter part. have rnads ,1, the
/ market. So much was this the case. thar while
the daily trading in other stocks has run from
20 to 20 thousand shares each. the trading n
! the two stocks referred to has run up into the
hundreds Of thousands. They dominated the
| whole market. It may be said. also. they de-
| moraifzcd IT,
II will be remembered that week ago. Sts-l
/ preferred was driven down from between . and
90 70 81. the word having been previously given
| that the stock would break % by the end Of the
week. From - there was small rally. g.
which the general list shared: and az the cl0ss
OF this article last week. IL was said that "
there was not another break in the Steeis. the
rally would go farther. Promptly on MondsT
morning. tho assault on steel preferred was re-
newed; $4,000 shares were done that day, and
the price was broken three points. from 53zs 70
5OIs- Next day tuesday vaS evidently devoted
to covering; for though $1,000 shares we're
done. and az time a quotation OF 19s. vas
made. the stock closed a trihe higher than il
opened.
This was the day the opening gun was fred
on Pennsylvania-something which considerably
facilitated the covering movement in steel. ~
with other like assaults. it had been preceded
| By reports that the stock was 70 be attacked
The Street bristled with points 70 sell IT, Thes@
came thick from Philadelphia. or appeared 70.
| Whereas on Monday. the trading IN the stock
had been only 2O.1OO shares. Tuesday the
/ battle began with sales OF $4,000 shares. The
price going from 1865 to 1141s- On Wednesday.
| the fight was hot. the early morning point be-
| ing that the price would be 1121z by noon. which
| II was On this day $4,000 shares were done.
/ The bull forces seemed now considerably weak
| ened and the next days attack carried the
/ price to 11O3t. with $4,000 shares Here there
was evidently considerable covering. th@
| price began 20 recover a little: and next day
| less than half OF what it had been on vednes-
| day Yesterday. the price held very easily
around 113 until after the bank statement sp-
| peared: when there was a sudden drive at the
! whole list and Pennsylvania dropped as IL shot.
| to 111&.
Take the whole week. and it appears that one
third of the outstanding capital stock 900 mill
ions) was traded in. with net loss of six points
/ Old hands at market manipulation. say that The
| selling OF such rash amounts OF stock. Of
company of the high standing OF the Pennsyl-
| vania IS good proof that the sellers have large
resources and courage No small men could
operate on such a scale as this: and the con
viction is very strong that the selling does
come and only could come. from one quarter
The present price OF Pennsylvania Is lower
/ than when it was paying . per cent; and OF
course there is a lot of talk about the next divi-
dend being reduced TO that rate; but the next
| dividend declaration is nearly six months away.
the semi-annual per cent having Just been
paid. It is notable. BY the way, that the stock
did not show signs Of any real weakness until
after the dividend came or Naturally. the
Street is now discussing Pennsylvania and Mr.
Cassatt, as it has discussed Mr.. Morgan and the
future Of the steel Corporation And it wouid
be futile TO disguise the fact that grave doubts
have arisen as to the expedienCy Of Mr.. Cas-
salts policy These are not the outGtvinss -
bear traders: they are felt by many rai~oaj
men Of high position. and by people whose IT,
ferests are wholly the bull side OF the -utrket
The apprehension is that Mr.. Cassatt has q
tempted too much that the vast schemes - inn
provement and extension he has entered upon.
calling for such enormous borrowings IS -
have seriously drained the money market. may
put a burden on the company which does jr-
deed threaten future dividends. II must Do sew
eraI wears before the largest and most costl"
Of these many improvements can bring IN 7TN
return; and only time show whether th"-
are financial successes or not. As enc railroaj
man put it: eft viii take five years 20 demon
strate whether Cassatt Is a great success or
great failure"
Il is easv to see that when the public mind
was already seriously disturbed by the sp-
parent failure OF Mr.. Morgan with his gigantic
Steel creation, the moment was favorable Tor
a market attack on PENNSYLVANIA, ostensibly
based on distrust Of Mr. Cassatt's policy The
effect is that these two men and the great en-
terprfses their names are associated with. are
at this time the leading topics OF the Street
/ With respect 70 the Steel stocks, the general
| hope is that with the common az 10 and the
| preferred at %. the bottom has been reached
/ 1t may also be said 1t is the general expecta-
/ ton that the common stock holders will havs 10
| wait until there is another great revival or
industry before getting another dividend; while
/ a continuance of the rate OF = per cent on tbs
preferred is regarded as more than doubtfui.
| Present prices for the stocLs discount this
\ While the market quotations have, very nstU-
\ rally. almost exclusively occupied public after
| ton. it would be more TO the point now 20 turn
| discussion TO the actual circumstances Of the
| Steel Corporation so that the public could
| understand more about the facts Of the business
than it evidently does now. II should learn. fer
| instance. what is the total output IN tons, What
/ is the average rate OF profit per ton; - tbs
| profit within such safe bounds a. TO give assur-
ance Of continuance or has II been sbrornlaly
| large and only possible in boom ttu,es7 II facts
| like these were clearly brought out. the public
/ would be in a much better position 10 judge the
| present and prospective value Of the securities
i At this time. hears the one side. only
1 talk OF the oceans Of water in the stocks on the
| other. OF millions Of earnings But - - al
| blind The average investor OF Spectator
| should know as much OF the conditions OF ths
| steel industry "a he does about the conditions
| OF railroadinS He viii in time. but he Is buying
/ his knowledge dear. One hears daily In wall
Street stories OF losses on the Steel stocks that
| are almost tragic Tbs worst are those CT CON
/ paratively poor people who had drawn their 1T
| tie all from savings banks TO invest IN them