New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-05-17
Financial.
The Financial World.

for the previous week was reviewed, and the IN
ference was drawn from it that there Wouid Dc
further sagging Of prices. This has happensd-
The course Of prices has been downward; but
with so slow a motion that the feature of the
market which most attracts attention is its duh
ness This is likely TO continue; - in antIcipa-
ton of it, number Of the larger houses OF the
Street have been cutting down expenses. reduc-
ing clerical force. and in other ways preparing
sor a dull summer.
The wild speculation in the cotton market has
not helped stock speculation. nor has the state
Of the iron trade. The price Of raw iron would
seem to be declining, but not hat Of finished.
products It was charged that the reports OF a
cut in the price of steel were circulated TO affect
the steel stocks; but this is somewhat doubtful
1t is easy to see how such reports could have got
into circulation naturally; and as to the steel
stocks. their present market quotations are low
enough to discount good deal OF cutting in the
price of the product.
Steel common at 33 is selling practically on a
non-dividend basis. II it not paying a
dividend at all. it might sell about where it does
now considering how many nOn-dividend pay
ing stocks are selling at that price higher
Texas Pacific is selling at So. Wabash preferred
at A. Erie at 33 Rock Island at Y. Reading at
%, NJ. K. & T. preferred at 81 Southern Pacific
at %. while Brooklyn Rar.d Transit is per
sistently maintained between go and 20. though
sight. What Is to the point. no one OF
these non-dividend paying stocks can begin 70
show such a surplus of earnings above charges
as is shown in respect TO Steel common. There
fore it may be said that the price Of the latter
is where it might be if it were not dividend
paying.
The preferred stock at IS. paying per cent.
is where it could sell if the dividend We're re-
duced to per cent. II would be a paying in
rnau at 2
mistake to make that bond issue As piece OF
actuarial work the method of the issue
unique. Only Mr.. Perkins could have worked it
out who is the leading actuary of the day But
the actuary alone is not to be considered in
large financial operations and there was very
general surprise when the scheme was first an
nounced. that Mr.. Morgan could be blind TO its
inexpediency. The Steel company was Offering
its preferred stock TO the investor. and the in
weston was considering and getting UP courage
TO take it. Just at this moment. the whole thing
was upset. The investor at once took alarm. and
he has not got over that feeling yet Otherwise
Steel preferred would not be selling at -.
The bonds are quoted about the same
price. 1t would be surprising if the = per
cent bonds and the I per cent stock continued
for some time 10 run pretty Well side by side n
the market, the higher return of the one bal
ancing the prior lien OF the other. IT VIII -
seen that at present figures. either OF bond or
stock issue, very considerable decline in The
iron trade has been discounted, so if il be true
that iron is going down. it may he said the
Steel stocks have preceded it considerably.
Cotton speculation has assumed such profr,r-
lions that the Street is almost as much inter-
ested in it as if cotton were listed ON tHe EV-
change. Its special interest now l. that ire
speculation has reached stage where 70 Is APP
parent that crisis is not far off The upward
movement has passed through three phases Tre-
first operator to start it Mr. THeodprs
Price; when he sold out and took the short side
Mr.. SuIy continued the forward mOvemsnt;
when he sold out the New Orleans syndicate
under the leadership of Mr.. Brown, took hold
and rushed UP prices higher than. eyer They
have the cotton now. Can they hold ite The
speculation has passed to abnormal stage,
where the price of the product at New Orleans
is considerably above that of New York. where
normally. the New Orleans price should rule
below New York. the difference representing
the freight charges. It is obvious that this thing
cannot last The trade is turned upside down
Wall Street looks for a smash. in which some
one viii get hurt; and the feeling that u
there is such a smash it will inevitably make
itself felt in the stock market. Ultimately. the
effect would he beneficial. as restoring cotton TO
natural market conditions; but the first shock
might be bad
This. and the generally disturbed labor situa-
ports cannot be said 10 have had much If any
influence because money is cheap and we can
send out gold than is likely to he called
for. before interest rates would he affected
that is. while stock speculation remains so dull
An unfavorable influence was also exerted by
the reports of MI Harriman's illness. II was
evident yesterday that supporting orders had
been put into Union Pacific. and one or TWO
other stocks which might b special objects OF
attention on the part of the traders because Of
Mr.. Harrinan's condition These orders helped
to bring the market to a better close than it
would otherwise have had. for the bank state
ment seemed to be construed unfavorabIy
The selling of St. Paul and Pennsylvania has
been specially noticeable. There is no reason 10
ask why the. latter is in such free suppIy-there
is so much of it coming. The price is now bout
12S and il may be recalled that when the last
stock issue was announced. it was said here
there was reasonable proba bility that by the
time the books closed the old stock would be
quoted in the market at the subscription price
of the new-12O. The probability looks even
more reasonable now than it did then
1t is not so easy to see why St. Paul should be
so steadily for sale. unless it be that the more
conservative element in the Board OF Directors
are keeping AN open mind" as 10 the advisa-
bility of continuing the dividend at the rate Of
was forced by circumstances rowing out OF
the HII-Morgan effort to lease the road.
The traction stocks have moved downward
curities has for some reason-probabIy the call
for the second instalment-moved down a little
faster notable appointment has been official
To- nv r1a arox-- 4b,r