The Savannah morning news., 1903-12-13

rise, out brokers are hopeful that the
public will enthuse
The REIMBURSEMENT of a certain pro-
Porllon OF January interest and divi-
oend disbursements is something to be
counted upon. Last year this invest
ment buying was rather disappointing
Ihere IS no way of telling at this time
Whetner 1t will make better show
ing at the end of this year than il
did last year. 1t is customary for buy
ing of this kind to begin before the
dividend and interest money is dis
pursed, the brokers carrying the stocks
Tor privileged clients until the latter
get their cheques for interest and divi-
oends, ana take up the securities they
have bought.
The buying power of of the public
mas been greatly reduced by the enor-
nous decline that has occurred in Sc
cuI1ty values. 1t is not lack of money,
put shrinkage of credit and conf
oence. The United States Steel Cor
poratlon's stockholders alone constitute
considerable part of public opinion,
and with Steel common selling around
$l2 share and Steel preferred selling
peloW ~, those who bought their stocks
between 40 and so for the common and
30 and par for the preferred are not
from to 10 per cent. in the general
market. In lesser degree the same is
true OF practically all active stocks.
1t is generally believed in Wall street
that the dividends on Steel common
Will be discontinued at the next meet
ing. 1t is also possible that the divi-
bends on the preferred will be reduced
10 per cent. rate, although this
has not yet definitely been decided
upon. AS a per cent. stock selling
at 90, Steel preferred would net the in
weston more than 8 per cent. on his
money. 1t is extremely improbable that
the dividends on Steel preferred will
ever be cut below per cent. The cor
poration ought to be able to pay that
through the leanest of years. The sink
ing fund bonds selling above 70 and
paying per cent. net the investor con-
s1derably less on his money, and as for
the comparative value of the two Sc
curities, the preferred stock is prac-
tically as good as the bonds, the lat
ter being no better in fact than first
preferred stock limited to per cent,
whereas the preferred stock is a per
cent. cumulative investment, on which
dividends are never likely to be less
than per cent, and the other 2 per
cent. accumulateS to the credit of the
holder. Through the conversion oper-
ations, now fortunately terminated, the
volume of Steel preferred has been
greatly reduced, making it less I'M
wieldly in the stock market and more
susceptible to manipulation. The sue
cess with which it was advanced this
week against the short interest demon
strated this perfectly. This advance
occurred in the face of information
that the Edgar-Thomson and the Joliet
works, which produce about Is per cent.
of the company's steel rail tonnage,
would be closed down, pending the set
Element of certain labor questions. The
United States Steel Corporation con-
templates various wage reductions,
running anywhere from 10 to 30 per
cent. The services of many high-sal-
aried officials are to be dispensed with.
There came a time in the affairs of
the United States Steel Corporation
when the conservative interests said
to Mr.. Morgan in substance: you
are banker and not a steel man. 1t
is time now for you to step aside and
let experienced steel men save this
business" 1t was the Standard Oil in
terest in the property that made this
suggestion, amounting practically to an
ultimatum, to Mr.. Morgan. Mr.. Nor
gan did step aside. His counsels no
longer prevail in the affairs of United
States Steel Corporation. The ener-
gies of those who are now in control
of the property are directed to the
problem of reducing the cost of pro-
ducing steel. The closing down of the
works is an argument which is calcu-
lated greatly to impress the labor ele-
ment with which the management has
to deal, and is calculated, indeed, to
show the advisability of accepting re-
duction in wages rather than lose en-
ployment altogether. A prominent au-
thority on steel and, iron conditions is
privately quoted in Wall street as say
ing that the closing down of the works
of the United States Steel Corporation,
at least in some instances, is due more
to the desire of the corporation to OBJ
tain control of the labor situation than
to lack of orders. Steel and iron in
terests abroad, according to cabled adj
vices being received here, are appre-