The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-10-06
Wall Street Awaits Action of
Great Corporation With
keenest Interest.
BIG INFLUENCE IN MARKET.
If Regular Payment of One Per
Cent for the Quarter on Com
mon Is Made. Entire List
May Be Buoyed.
REPUBLIC SPECIAL

REPUBLIC SPECIAL
New York. Oct. 5.-DOubtless the specu-
lative stock market OF the immediate fu-
ture will be influenced more than anything
else by the action tomorrow Of the United
States Steel Corporation concerning the
quarterly dividend on the common stock.
Statements ermed semi0ficial. but ema-
mating from such sources as 10 render
them substantially official ~utterances. re-
peatedly made during the period OF the
greatest weakness in the securities. have
set forth that nj change would be made in
the rate and that the full l per cent for
the quarter. equivalent to about : per
cent per annum on the average selling
price Of the stock during the week. would
be paid.
These sources OF information are not
given 20 misrepresentation. and. in conse-
quence, though nothing Is certain until
action is taken. there seems no reason to
doubt that 1t IS the intention Of the Steel
Corporation TO make NO change in the
common stock dividend. at east not at this
time.
How the Wall street community will &C
cept the dividend action, whatever it be.
Will be a matter OF much interest. Men
" 1850 N"@N NAN A#NN-A $50 N@ @NN@a
have read in the low quotations OF the
Steel stocks a suspension or reduction OF
the dividend rate on the common shares
1t would be preposterous. they maintain.
for a company TO pay at the rate Of 4 per
cent on stock selling from 10 TO Il per
share. To them & has signihed something
wrong with the corporation. lack OF conf
dence in the management or a discreditlng
Of the Compsny's report OF earnings.
II the management believe in the com
pany." they say, in substance. why don't
they support the stOck2 They cannOt make
= per cent annually on any other Sc
c~urity.'
HOW WILL STREET TAKE IT?
But the low price Of the stock does not
necessarily imply lack OF confidence on the
part Of the management In the property.
Wall street is not dealing with an ordi-
nary corporation, but one with a capital
tZatiOn Of Sl.40.0o0.O0O or whereabouts. II is
dealing with a corporation with capital
sorb II readily. Huge blocks were held
speculatively. n spectators have been
forced 10 fling them on the marke Wall
street IS witnessing the struggles Of a con-
Germ beset with a deluge OF water.
Blu the great question sp~eculativcly IS:
VIII the street feel encouraged II the Steel
Trust declares its regular quarterly divi-
deud on the common stock or will II re-
gard II with suspicion, as a device to sus-
tain the cOmpany's credit or EalvanlZe a
languishinE market From such an action
Will the street draw the deduction hat the
reaction in the irpn and steel Industry. In
the minds Of the trust administration,
merely is temporary, and that investors
may buy the common stock with assur-
ance. or viii the strange reasoning OF Wall
street interpret Il entirely contrary?
As already stated, the considerations
which enter into the dividend action Of the
Steel Corporation on Tuesday are varied
and interesting. and they probably have
more import on the future Of the specuia-
ton market than eve Wall street appre-
Ciates.
The prominence Of the men in control OF
the corporation affairs may serve as a
guide and index 70 many others who are
now puzzled as 10 whether they Ehould
distribute money in dividends or husband
their resources.