The sun., 1903-11-11
FINANCIAL AND COMMERCIAL.
TUESDAY, Nov.


Tho weakness in the shares OF the United
States Steel Corporation and the lug,ibrious
views popularity entertained regarding the
present and future state Of the iron ant
steel manufacturing business eliminated
to-day very naturally in sharp specu.
htlve attack on the stocks OF railways
deriving large part Of their revenue from
| iron and steel tonnage. Tho Pennsylvania
Railway shares were tho chief object oil
assault. and to the argument that the road
| would be heavy loser by the depression
! in the iron and steel trade was added much
bearish talk about the recent heavy borrow.
ings OF the company. There is nothing
| surprising in the bond and stock issues
authorized In the last few weeks by the
I subordinate companies of tho Pennsylvania
| system. 1t was plainly stated in tho Penn
sylvania's last annual report that such
issues would be made: and it is obvious
! that these issues must have assumed the
| form that they did because the ownership
Of the properties on which the proposed
improvements arc to be made is vested
in these subordinate companies rather
than in the parent system. Genuine
holders Of the Pennsylvania shares do not
seem to be disturbed over the situation,
and IL is understood that additions to the
Pennsylvania's capital account are now
finally oyer with. There was no effort
made to-day to conceal the fact that the
! selling Of Pennsylvania, Baltimore and Ohio,
Reading and other stocks Of the group
was in the nature OF drive. The drive
was, it must be admitted, fairly successful.
for It resulted In extreme declines Of from
to 2H points in the stocks in question.
A fair share Of the losses was recovered
before the close Of the market.
The days market was really a sharp
| contest between the forces making for an
advance and those making for a decline
in the price Of stocks; and victory rested
Enthusiastically, at the close with the side Of
higher prices. While the selling Of the
Pennsylvania group OF stocks was going
on there was large buying In Of short con-
tracts previously put out in United States
Steel shares. 1t became very we'll known
after the close OF business on the Stock Ex-
change yesterday that the Pennsylvania
and Baltimore and Ohio stocks particu-
larly would receive the attention of the
bear party this morning; and there is little
doubt that the sales Of these stocks during
the day were made for the distinct purpose
of covering the retreat or partial retreat
Of the short interest in the United States
Steel issues. There was. Of course, con-
tinued liquidation In the Steel stocks It
was not known before the close of business
to-day what, II anything. had been de-
cided upon at the meetings of the Steel
Plato and Structural Steel pools which,
II was said. we're taking place in this city,
but 1t was the accepted belief that some
reduction IN steel prices in these classi-
f1cations would soon be ordered, such action
being the inevitable corollary, seemin gly,
OF the reduction in the price Of steel billets
as recently announced Speculative Wall
Street Is thoroughly of the opinion that at
the Jan uary meeting Of the United States
Steel directors the dividend on the common
stock Of the Steel Corporation will be passed
entirely, and the effort now is on the part
Of operators for the fall to make it appear
probable to the general public that the
continuance OF the full dividend on the
Oorporation's 8 preferred stock is doubtful.
Not all Of the enormous selling of the Steel
shares that has recently been in evidence
could, OF course, have proceeded from
mere speculative operations for the de-
cline, and the name Of this and that large
stockholder or prominent investment in
terest has been freely mentioned as having
been q seller Of the shares. All such stories,
Of course, belonged to the familiar limbo
OF Stock Exchange rumors. On the other
band ,the impression Is very strong among
many competent observers of the stock
market and careful students Of financial
affairs that in q general way there has been
facilitated by reason of the recent decline
in the Steel shares something very nearly
resembling a change in the control of the
Corporation.
The Western railroad stocks were COM
paratvely little affected by the weakness
in other quarters of the list, and, as has
been the case for weak past, the local
( action shares were strong The strength
of these street railway stocks was, indeed,
more noticeable to-day than it was at
any previous time, and it seems wholly
improbable that il mere manipulation were
at the bottom Of the advance, a period Of
such market unsettlement as the present
would have been chosen for the accomplish
ment Of the purpose. A sensational ad-
vance Of y, points in Pacific Mail stock
at one time was due, no doubt. to the en-
hanced prospects of the construction Of
the Panama Canal by our Government
Another stock whose strength exerted no
small huuenCe on sentiment was Anal
gamated Copper. The stock was steadily
bought at rising prices while the selling in
other quarters of the market was most
furious The sterling market to-dny was
again as fully demoralized as it was yester-
day, the rates for demand sterling falling
to 34s34o, or nearly to the point at which
eovereigns can be withdrawn from the
Bank OF England for shipment hither. The
situation, as described by foreign exchange
houses. is that there does not seem to be
money enough to take care Of tho mass
of cotton bills that is being poured upon
the market, and that, although there is no
desire to force gold imports. it seems i'm
probable that these imports can be avoided.
Indeed. 1t is we'll understood that prelimin-
ary arrangements for large gold imports
to this side are being made. Money con-
ditions were practically unchanged to-day,
call money again touching per cent. but
falling below 3 per cent. in the afternoon.
Trust companies are now loaning money
freely, attracted by the higher rates for
interest prevailing, and as in order to do
so they must withdraw their funds from
national banks where they have been de-
posted. the net result of the process is to
d. II A.-.~ l. =