The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-14
FINANCIAL AND COMMERCIAL.

dustrial shares. Were these 1ndustrlal issues
eliminated from the trading there Ii little
doubt that the prices Of the standard railway
stocks would Immediately range on a level
we'll above that which they now occupy
for there Is practical unanimity of opinion
among critics of values that the issues
last named have already much more than
discounted in their price any general trade
reaction that is now In evidence or is. &C.
corrling to any reasonable basis Of calcu-
lation. probable in the coming year. The
extent and quantity of this trade reaction
is now, indeed. the subject of almost hys-
terical e1aggeration by spectators fol-
the fall. Manufacturing in certain lines
in the Eastern portion OF the country has
undoubtedly been overdone and something
of revolt is on among consumers against
the high prices for various manufactured
articles.
1t is revolt that bids fair to be successful.
But will it result harmfully or benefcially
to the country as a whole? And through
the great West what signs are there save
of a most prosperous business. bulwarked
by tho abundant harvests that are now
being reaped? Railroad earnings are now
as large as they have been at any time
and will it be very sad thing for these
railroad companies if they get their steel
rails and steel cars at lower cost in the
coming year than they did in the last'
The common stocks of the industrial COM
panies dealt in on the Stock Exchange are,
for their part, in most instances. now selling
at figures which disregard the advantage
OF any dividend return on the shares and
leave open only the desirability Of possess
ing the voting power and general equities
expressed therein. This is especially true
In the case of the United States Steel Cor
poration. The price Of its common stock
now represents market value OF less than
go 900 Co., Is not the control of the United
States Steel Corporation worth that sunni
1t would seem as II sooner or later such
considerations as these must produce
some effect upon Stock Exchange sentiment.
Wall Street may we'll at this time recall
also its deeting memories of the industrial
smashes that have occurred within the
last five years and have, after producing
stock market perturbation for the time
being, disappeared without leaving any
fearful traces of their influence upon the
general market. Each time, too, these
collapses were due to business reasons and
not to any mere adventtious causes. The
price of Brooklyn Rapid Transit. after being
doomed in an unwarranted way from almost
nothing up to a price Of sl37 share, fell
suddenly to 500 share and caused great
unset lement in the market. But after a
little time the market went on as before.
Similarly, the price of Amalgamated Cop
per fell within few months from $3.50 to
$50 share, with large attendant losses
upon investors throughout the country.
All industrial stocks were affected more
or less by the occurrence, and the Stock
Exchange saw a generally weak market
while the fall was in progress The matter
was forgotten in due season. Later on
came the famous tumbling of the so-called
Webb Meyer syndicate stocks on the curb
market. which, in turn, produced semi
panic upon the Stock Exchange; and at
other times the affairs Of the Everett-Moore
syndicate in Ohio, the breaking up of the
Asphalt company and the great declines
In the price of the American Mailing shares,
BY their signal illustrations of the dangers
OF investment in the shares OF overcaptal-
lied industrial concerns, produced more or
less havoc in the general speculative mar
ket. On all these occasions prices on the
Stock Exchange became demoralized. and
the cry went up that the general business
Of the country must suffer greatly thereby.
But these gloomy prophecies were never
realized. The losses in every instance
were found to be confined to the pockets
of comparatively few people and. as a rule,
affected spectators more than anybody
else. The present fall in the prices of the
industrial shares is market rather than a
trade reimbursement, and when it is COM
pleted it will be found that really meritorious
securities and those depending for their
worth upon tho sound and healthy conduct
OF business arc better OF than they were
before.
Fluctuations In prices on the Stock Elk
change to-day were governed almost en-
tirey by the course Of quotations for the
United States Steel preferred shares. Prices
came higher from London and advices
were that the fortnighty settlement there
was progressing favorably, although much
dismal capital has been made here by bear
ish operators for days past out OF stories
that failures Of English jobbers in Ameri-
can securities were imminent. Official
denials, too. were made of the truthfulness
of the rumors that have recently prevailed
as to impending hostilities between Russia
and Japan, and it is probable that these
stories were circulated in foreign capitals
for stock market purposes. The Steel
preferred shares, after reacting sharply
from their low figures Of yesterday. fell again
to 57A, the lowest price of record, and then
closed at a slight advance, making a net
loss Of ~ points for the day. Steel COM
mon, however, closed higher than it did
last night and the closing quotations for
most Of the railroad shares were at net
advances. A decline Of 8points in Colorado
Fuel and Iron, in view Of the we'll known
character Of the stock, affected the general
market but little. A gross and unfolnded
story that one Of the outside steel companies,
whose stock Is chiefly dealt in in the Pitts
burg market, was on the verge Of going
into the hands of receiver met with a
prompt denial from official sources. The
tale, while 1t caused a commotion in Pitts
burg and materially aided in the liquidation
OF industrial shares that has been in prog
ress in the stock market there for consider
able period, attracted small attention here