New-York tribune., 1903-07-19
Financial.
The Financial World.

\ hGuidatloH scattering breaks IN spaciaifi.
may set be noted; but the great blocks o. 80
| ing stocks which for weeks nave been ts-,~-
on the market. appear to be exhausted. -.
have. 10 all appearanos, been distributed -,
gone ts people presumably able TO take ca-s j.
them. The big day ths past weak was Wsas.-
day Gust it was In Jgns}. when the ras,rL'
had p very bad look. aud tEaasact lions war. =
heavy scale. Since then there has bean II
pToveuent.
IL seems to be generally understood TIA. a
heaviest selling. that which never let thu -
/ ket get q chance to rally. came from people -
being loaded up vita unstable things. had !.
let go things which were salable 10 nza,.
them The food OF steel securities poured as. :
J asserted to have been largely the eoIlatsrsl !.
7 some big loans. When market gets sra,s.s
that way. numbers Of people lose their 49,
and sell what they have with no reason ~
doing it. Much OF the selling lately has -
distinctly Of this hystsrical c6aractar. Aus :
course falling market searss OF Wosra.s.
buyers. 1t takes courage, quite indansRdsas -
money. 10 buy on falling market
This leaves out professional bear o1sraHr-.
which precipftats declines but canaof b-,.
about tbs conditions which make declines fros
nsnt. 1t seemed as if nearly everybody va.
bear lately either active or passive Thos4 aso
have been lucky enough 70 be on top % "A.
market at the right time, ought to have rnass,
good deal OF money. The bear campaign Ia,
been we'll conducted Strange to say, no ns1s,
have been mentioned as bear leaders n.
Standard Oil people have been talked about an
the time. but it has been mainly as OF ssnsr, A.
stocks on which they had lent money. M
Keene heretofore generally got the credit a
bear movement: this time he did not. He wsz
downtown when the market had its worst spell
and was splitting fire and birthstone sbeut pss.
pie ripping the insldss 5ut OF things.
The recovery which has followed Wednesdays
wholesale selling is encouraging, in that il hsz
been general. and IN some cases quite shan
Canadian Pacific led the way on Thursdsy
giving the rather numerous shorts in it a Htss
| scare by rushing up rapidly some four pOina
loaned stock having been called in. 1t is said
This was probably worked through LsRdon
Nsw-Yerk Central. however. made the Oest r.
e9very-from 1925. its lowest Of wednesday. to
11S1s yesterday. The other leading stocks have
not done so well thisi but then they were
not previously pounded 50 numerically as Cen
trail was.
ST Paul at one time was broken down to lS9
When it reached 140 or thereabouts. certain IN
side interests started to buy back tie stock they
had sold months ago Thay got it 50 fast thar
they stepped. pending a little investigation as
to where it was coming from The investigation
was apparently satisfactory. as the stock has
rallied with the rest, and word now comes thar
est Paul is all right It has not been all right
from that source since early in the spring
When The market was getting its worst maui
ing, the persistent way IN VII ch Erie and Read
ing was bought. attracted considerable attea-
| ton. Some one was on hand to take all that
came. Once or twice Erie was forced beow
30. but it promptly came back again Reading
was pounded around 4S. and had z point
knocked of in the fight. but that too speedily
came I'D. and has crossed 80. In the racket on
the 10th OF June, there was fight over Read
ing around 42; and it IS one OF the few stocks
which advanced after that break while the ress
OF the list went down.
OF the steel stocks IL may be said that thsT
came out in such streams that one eQzF
wondered where all the buying as we'll ss sha
selling could come from Record low prices vszs
made for both common and preferred, as vel
as for the new bonds. Current talk IN tbs
Street was that some Of the largest loans sold
out had the Steel securities the bulk Of ths
collateral At present pr-css. it would seem as
if at least two years OF bad trade for ths
Steel Company had been more than discounted
It is known that the price of iron and steel IS
falling, which is a sign for other trades and IN
dustries; but the fall in the securities has gone
away and beyond all this Independent calcula-
tons Of the probable earnings OF the company
for the next two years. contemplate taxing
off from their present level; but allowing for
this II is calculated that the dividends are safe
It may be added that when a company doing
gross business OF 500 millions per annum IS
unable to earn its dividends, there VIII ne no
easy time in other things.
However. It is not OF much use 70 talk a0ouf
earnings and values. when the creditor IS call
ing for margin on his loans. and throwing 1ns
collateral on the market because the calls are
not responded to. The steel stocks VIII 80 up Z
there are no more big loans 10 lie sold OUT ana
/ thew will not if there are. The common IS seu-
| ing at a figure now which il might easily 90
it were not paying a dividend az al; ana lA'
| preferred could sell where il does Il II were
| only paying i per cent.
| When the general market rallied after "eanes-
/ davis drop. Two or three stocks distinguished
| themselves by breaking suddenly. after ha'--s
| been hsld previously with comparative hrTansss'
| One Of these was Rock Island Prooaoy ~
many people were surprised The preferred .1- ior
| lowed the common. THIS stock has Vo---s
/ power. which the common has not; ana As-'1'
| an idea got abroad az one time that the
/ tors would not dare 70 part witn this 0e-4-.'
| they might lose control Of the properly-'h''.
/ fore IT was a safe by. number OF pSfs'
/ bought It pu-ely on that ground Ihey 0se-
! looked the fact that tie directors haa sle0 -
/ themselves for i've years; and aLleF "a y I-~-s
/ Board changes by clEsshcat-ol- Inc u..s~ sso,E
/ had no particular need for the preIsIlSL N~s
/ Tor a few ne. IS o least. ana as To- tle cOlN
/ mon they had 10 need Of that Tor any IL S.LlS IN,
! Another stocE which broke Whel 80 ~ - 90 a.
orally was recovering was AZc2Isa Ils.sI- y gsr7,
/ It was very viciously attacked ana olOs a., -,sr-
/ 30 to 46 This cons -de:ably dlstul0eG - T,s
| ket for a while. but u braced up sSe- SSef IL "a
! reason Why Copper broke % a S.-, 49, n
/ was proaa Sly because it is net Worln - -. ~.
/ The Penusvlvaria urdervTt ng SyAa-cS.7 H..
/ been dissolved. ard checss To- - - - ,oSarst.