New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-20
Financial.
The Financial World.

trading market. week ago yesterday. there
were the pIainesL Indications that the bear
party had started TO renew their attack on the
list the prominent sign OF it being drive
at Pennsylvania It was sure that II this were
successful. the Steels would also suffer; these
leading stocks. in the railroad and Industrial
lists, being relied upon In case OF decline TO
carry the others with them With some sur
prise. therefore. it was noted on Monday thar
no attempt was made to sell the market down
On the contrary. there was very evident Gov
ering OF shorts. causing a general stinentng OF
prices. For the rest Of the week. there were
long dull SPELLS but the trend OF prices was
mainly upward. and closing figures yesterday
generally showed gains over the week before
Business. however. seemed wholly professional;
and the commission houses are doing very little
Plainly there must have been some reason
for the sudden change OF tactics BY the bear
party; and it Is not far to seek. II the public
Is not buying yet il is no longer selling; 20
when a renewal Of short selling IN the late
most vulnerable stocks. disclosed that there was
no more public liquidation TO be forced Il was
a sufficient hint to haul of. Beyond this. Il has
become apparent that there Is solid short IN
terest in these stocks which acts a sort or
buffer against pounding; since with so rnAny
people short, there are always some ready %
buy when q recession affords chance for profit.
be a prerequisite for the engineering OF a fur
Their decline. If one Is to be worked at all: and
the easier way to reduce Il Is to force cover
ing by putting prices up
Advantage was taken OF the action OF the
various pools in the steel trade. in deciding 70
maintain schedule prices. to rally Steel pre-
ferred smartly. Attention was mainly hxed
the steel billet pool Predictions had been very
confidently made that bnets would be cut below
reduced from S2T per ton. The manufacturers
decided that no good would result from further
reduction One manufacturer said. scofHngly. that
reduction from S23 per ton would be just the
thing to suit British and German rivals, since
they would buy up our cheap bilIets and under
sell us on the finished forms OF steel made from
them. In addition. it is understood that the
steel trade is showing some signs OF recovery
from the sudden paralysis which struck it IN
October and November. Just what would be
the outcome of this on prices was not at the
time apparent; but there was enough to make
railroad managers and others stop ordering.
One Of these said. I'VE saw that something
was coming. so We decided TO wait and see how
the cat jumped. We shall soon have to order
again anyhow.
The paralysis was too extreme and too sud
den to be more than temporary in part az
least: but 1t viii make the Steel company's
earnings for the December quarter look very
sick They have been estimated lower and
lower weekly: and the last estimate, given out
"a few days ago, put them down to between Is
and Il millions. as against 81 for the same
quarter last year. With this lowest OF all esti-
mates. bets were offered in large amount that
II would prove correct. Assuming that IL WILL
it is also probable that it is the worst the com
pany will have. To drop from 81 to 13, IS
dropping from prince to pauPer rather ao-
ruptly.
About the same technical market conditions
were found in Pennsylvania as in Steel-no
more public selling and a compact short Interest.
as large. or nearly so, in proportion to the bulk
of stock as in the other case. So Pennsylvania
moved a little backward and forward day by
day but tending upward in the main: and
hnan-- maintained itself about us. as against
115 the Saturday before. 1t was the more easy
to do this. as the company did not put Out
a new loan during the Vice.
The Atchison did. and It's stock suffered TO the
extent of two or three points. In the company
last report. a very frank statement was made by
the management Of disappointment at the fail
ure TO keep expenses down to what had been
hoped. The causes Of the failure were increased
cost of labor and material decreased efficiency
of shop labor and largely increased cost Of re-
pairs to locomotive equipment. due. singularly
enough. to impure water Why the water
should have been worse than in former years
ia not stated; but that It was. IS affirmed. All
causes combined forced the company TO use the
bonds in It's treasury TO the extent OF $40 mill
ions, which put an increased annual charge OF
100000 ahead of the stock. Much Of the ten
millions Will be devoted TO the requirement OF
new property. 1t is pointed out that ten mill
ions is Just the sum which the dividends on thu
common stock have amounted 10 since they
were started: and it viii be remembered that
the starting OF them was much criticised at the
time the criticism being that it was a dangerous
discounting OF expected prosperity. Some urge
now that the future Of the company would be
more secure if the common stock had been al
lowed to wait few years longer for dividends
While the attention Of the Street was much
given to the arguing OF the Northern Securities
cese. it had no visible effect-on the market In
the case of an adverse decision it is very doubt
full whether it would have much; chiefly be-
cause an adverse decision being 50 confidently
expected. it must be already discounted. This
implies however, that the trouble ends with this
particular case. II the Government. armed with
the sweeping powers which an affirmative de-
cision on the lines OF the decision OF the lower
court would give. should proceed against va
rious other corporations, great confusion would
inevitably result For 1t is not too much to
say. that no would be safe. Combination IN
restraint OF trade would be charged against half
the railroad systems OF the country. The Penn
sylvania would be specially open 10 such a
charge: and the coal companies would be al
most without defence against IT, II proceed
iEgs were not instituted against them. It would
simply be because the Administration did not
deem it expedient not that it lacked the power.