The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-05-17


thing like 40 for the common stock and 80
for the preferred. The fact remains. how
ever, that the United States Steel Corpora
ton has been paying dividends on the par
value of its water. these dividends amount
ing TO about S2000o.000 a year. This be-
comes very striking fact when 1t is re-
membered that after an existence OF only
two years, in the most prosperous period
steel and iron Industries have ever known.
the United States Steel Corporation needed
to issue bonds to raise SO. 900 900 cash for
improvements, etc. 1t was not conserva-
tive. at any rate, to start Steel common on
a per cent. dividend basis. 1t Will be re-
membered that the first dividend on the
stock was announced as a payment OF
per cent. without any intimation as TO
whether 1t was quarterly dividend or
what. A heated discussion arose and sew
eral days after 1t was officially announced
that the dividend was quarterly one and
that the stock had been put permanently
on a per cent. basis. All this happened
while James II. keene was conducting his
memorable campaign Of distribution. The
promoters and big insiders were very anx-
ious TO sell their common stock.
XXX
It has been whispered around in stock
market circles for several weeks that the
various big steel companies, although ex-
ceedingly busy with business on hand, were
not booking new orders as heavily as they
should like to be doing. These limitations
were ridiculed by the trade authorities
here and were generally dismissed as mere
gossip, probably inspired by the bear party
in United States Steel shares. 1t was a
shock to Wall street. therefore, to hear this
week that the Jones Laughlins Company
Of Pittsburg had cut the price sof steel bill
lets on new orders IS q ton. There has also
been declining tendency revealed in pig
iron prices, both on the Northern and
Southern markets. 1t would be premature
to say that these incidents presags a set
back in the iron trade, but they have ere
ated uneasiness and further developments
are awaited with undisguised anxiety. The
interruption OF building operations through
out the country as result OF labor dis
turbance is probably responsible for a de-
clining demand for finished steel products,
especially structural steel. Trade author
shrinkage of home consumption weuld en-
able manufacturers to devote more atten-
ton to the foreign markets, which have
the mills to keep pace with the domestic
demand.
The development Of crude oil as power
producing fuel is attracting q great deal
Of attention these days. For the same
reason that the finest inventive genius of
the world has been brought to play upon
the problem Of reducing the cost Of pro-
ducing coal, human ingenuity has been
busy in its search for q substitute for coal.
The compton Of fuel Is constantly in
creasing and the demand for something
more economical than coal Is obvious. The
discovery of heavy crude oil IN Texas and
the necessity for its utilization has stimu-
lated the search for a means whereby oil
may be economically substituted for coal
as q power producer, and such means are
believed to have been found in the invention
of the Ostergren fuel oil engine for the
manufacture OF which corporation known
as the Fuel Oil Power Company, capital
lied at 100000. has been Incorporated by
act of Congress. 1t is claimed for this en-
CINE that It will produce power in any de-
sired capacity at one-tenth the cost Of pow
er produced by any other engine previously
known. 1t is particularly adapted for
transportation work. An S0O-horse power
New York to Chicago in twenty hours and
consume only twenty five barrels of oil, al
fuel cost Of not more than 81.
The infinite play Of criticism and humor
upon the phrase "undigested securities, y
| used by Mr.. Morgan in the interview he
gave out on the financial situation previ.
| Gus to his sailing for Europe, is said &C
| have deeply chagrined the great organizer
| and to have further confirmed his prejudice
| against being quoted In the newspapers
| The phrase was an unfortunate one /,
| was not original in Mr.. Morgan's interview
| having already come into general Wall
street usage, but his name gave it an au.
| thority that carried it into every financia
| center of the world, and it has been echo
| ing back to Wall street ever since, various
| ly distorted and embe1lished. Mr.. Morgan
| broke a fixed rule in giving out the inter
view and had Ii rewritten five times be-
fore he was satisfied with 1t, but notwith
| standing his scrupulous pains the unhappy
phrase referred to was permitted to stand
| IL was expressive, truthful and natura
| that Mr.. Morgan probably did not realiz,
i that fh0Sp very OualttipS would unOn thl
authority Of his usage, give it a tremendous
| vogue. Mr.. Morgan is reported to have
| said that he will never give out another in
! terview. w. G.. NICHOLAS.